Consultancy agreement in New Zealand: Template, Key Clauses and Local Law (2026)

What a consultancy agreement is in New Zealand A consultancy agreement is a contract under which an individual or firm provides expert advice or specialist services to a client as an independent contractor, not as an employee. It is used for management consultants, IT and engineering specialists, interim executives, designers and advisers of every kind. In New Zealand there is no dedicated consultancy statute, so the agreement is built on general contract law, consolidated in the Contract and Commercial Law Act 2017, with a few local rules that matter a great deal: contractor status, tax, intellectual property and restraint of trade. This page is general information, not legal advice. For a significant engagement, have a qualified professional review the agreement. ## The local rules that shape a New Zealand consultancy - Contractor status. The central question is whether the consultant is genuinely independent or is really an employee. New Zealand courts look at the real nature of the relationship under section 6 of the Employment Relations Act 2000, weighing control, integration into the business, and who bears the financial risk. The contract label is not decisive.

• Tax and ACC. A genuine contractor handles their own income tax, may need to register for GST if turnover exceeds NZ$60,000 in twelve months, and pays their own ACC levies. Certain contractor payments can be subject to schedular payment withholding tax, so the agreement should address how tax is handled.
• Intellectual property. Unlike with employees, work created by an independent consultant does not automatically vest in the client. Ownership must be assigned expressly, or the client only gets a licence.
• Restraint of trade. A post engagement restraint is enforceable only so far as it is reasonable to protect a genuine interest, and must be limited in time, area and scope. ## A consultancy agreement template you can adapt ``` CONSULTANCY AGREEMENT Date: [date] Client: [name, NZBN, address] Consultant: [name, NZBN, address] 1. SERVICES The Consultant will provide: [scope of advice or services, with any deliverables, referenced to a Schedule if needed]. 2. TERM This agreement runs from [date] [until completion / for [period]], and may be ended under clause 10. 3. FEES AND GST Fees are [day rate / fixed fee / retainer]. Fees are [inclusive / exclusive] of GST at 15 percent. Invoices are payable within [number] days. [Expenses pre-approved and reimbursed at cost.] 4. INDEPENDENT CONTRACTOR The Consultant is an independent contractor, not an employee. The Consultant is responsible for their own income tax, GST and ACC levies, and is not entitled to employee benefits. 5. YOUR OWN WORK The Consultant may work for others, provided there is no conflict with the Client's interests. 6. INTELLECTUAL PROPERTY Intellectual property created for the Client under this agreement is [assigned to the Client on payment / licensed to the Client]. The Consultant keeps its pre-existing and background IP. 7. CONFIDENTIALITY The Consultant keeps the Client's confidential information private during and after the engagement. 8. PRIVACY Where personal information is handled, the parties comply with the Privacy Act 2020. 9. RESTRAINT (IF USED) [Any restraint is reasonable and limited in time, area and scope to a genuine interest.] 10. TERMINATION Either party may end this agreement on [period] notice, or immediately for material breach not remedied within [number] days. 11. LIABILITY AND INSURANCE [Liability cap; the Consultant holds professional indemnity insurance of [amount] if required.] 12. LAW This agreement is governed by New Zealand law. Signed: Client ____________ Consultant ____________ Date ______