Running a trade business in New Zealand: LBPs, the 70 square metre change and CCA payment claims

New Zealand licenses the work that keeps houses standing and dry, protects payment through the Construction Contracts Act, and in 2026 is mid-way through the biggest occupational licensing refresh in years. The current picture:

LBPs and restricted building work

Restricted building work, the structural and weathertightness elements of homes and small apartment buildings, must be designed and carried out or supervised by Licensed Building Practitioners in the relevant class (carpentry, roofing, external plastering, brick and blocklaying, foundations, site, design). Electrical work is licensed by the EWRB and plumbing, gasfitting and drainlaying by the PGDB at any value. From 15 January 2026, standalone dwellings up to 70 square metres can be built without building consent under conditions, a headline change for the granny flat market, but restricted building work rules still apply, so LBP involvement remains the norm.

Licensing reforms rolling through 2026

Reforms in progress strengthen complaints and disciplinary processes for LBPs, electrical workers and plumbers, introduce codes of ethics for the certifying trades, and will let approved plumbers and drainlayers self-certify straightforward work. Watch the MBIE and board announcements; the practical effect is more accountability paperwork and, for eligible plumbers, faster sign-off.

Getting paid: the CCA

The Construction Contracts Act gives every construction contract a default progress payment regime. Serve a compliant payment claim and the payer must deliver a payment schedule in time or the full claimed amount becomes recoverable as a debt, with adjudication available for disputes. Since the 2023 amendment, retention money is automatically held on trust from the moment it is withheld, with reports to subbies at least every three months, so a head contractor collapse no longer wipes out your retentions.

ACC, GST and site safety

There is no workers comp insurance market; ACC levies cover workplace injury for employees and the self-employed alike. GST is 15% and applies to virtually everything. The Health and Safety at Work Act puts PCBU duties on every business in the chain, with WorkSafe NZ enforcing, and overlapping duties on shared sites make documented coordination part of the job.

FAQs for New Zealand trade businesses

What can I build without a consent from January 2026?

Standalone dwellings up to 70 square metres became possible without building consent from 15 January 2026, subject to conditions including professional involvement. Restricted building work rules still apply, so LBPs remain central to house work.

How do payment claims work under the CCA?

Serve a compliant payment claim and the payer must respond with a payment schedule in the contract timeframe or the claimed amount becomes recoverable as a debt. Adjudication is available for disputes. The regime only protects claims that carry the required wording, so use a correct template every time.

What happened to retentions?

Since the 2023 amendment, retention money is automatically held on trust from the moment it is withheld, with reporting duties every three months. If a head contractor fails, your retentions are no longer just another unsecured debt.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.