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

What a service agreement is in New Zealand A service agreement is a business to business contract where one party agrees to provide services to another for payment. It covers IT support, marketing, cleaning, maintenance, professional advice and almost any ongoing or project based work. In New Zealand there is no special statute that dictates the form of a service agreement, so the parties largely set their own terms under general contract law, now consolidated in the Contract and Commercial Law Act 2017. Freedom of contract is wide, but a handful of local rules shape what you should write down. This page is general information, not legal advice. For a high value or unusual arrangement, have a qualified professional review the contract. ## The local rules that shape a New Zealand service agreement - Contract and Commercial Law Act 2017. This consolidates core contract rules, including on electronic transactions, so a service agreement signed electronically is valid.

• GST. The standard rate of Goods and Services Tax is 15 percent. If the supplier is registered for GST, the contract should state whether the fee is inclusive or exclusive of GST, because silence causes disputes. A supplier making more than NZ$60,000 of taxable supplies in twelve months must register.
• Consumer law. If the customer is a consumer rather than a business, the Consumer Guarantees Act 1993 and the Fair Trading Act 1986 apply and cannot be contracted out of for consumer deals. Between businesses the Consumer Guarantees Act can be contracted out of if it is fair and reasonable to do so, and the contract says so clearly.
• Contractor status. A service agreement with an individual supplier can raise the question of whether that person is really an employee. New Zealand courts look at the real nature of the relationship under section 6 of the Employment Relations Act 2000, not just the label on the contract. ## A service agreement template you can adapt ``` SERVICE AGREEMENT Date: [date] Supplier: [name, NZBN, address] Customer: [name, NZBN, address] 1. SERVICES The Supplier will provide: [clear description, or a reference to a Schedule or Statement of Work]. 2. TERM This agreement starts on [date] and continues [until completion / for [period] / until ended under clause 9]. 3. FEES AND GST The Customer pays [amount or rate]. Fees are [inclusive / exclusive] of GST at 15 percent. Invoices are payable within [number] days. 4. EXPENSES [Pre-approved expenses are reimbursed at cost on production of receipts.] 5. SERVICE LEVELS [Response times, availability or quality standards, if any.] 6. CUSTOMER OBLIGATIONS The Customer will provide [access, information, materials] needed for the Supplier to perform. 7. INTELLECTUAL PROPERTY [Ownership of deliverables: assigned to the Customer on payment, or licensed; the Supplier keeps its pre-existing and background IP.] 8. CONFIDENTIALITY Each party keeps the other's confidential information private during and after the term. 9. LIABILITY [Cap on liability, exclusion of indirect loss, carve-outs; reasonable and clearly stated.] 10. TERMINATION Either party may end this agreement on [period] notice, or immediately for material breach not remedied within [number] days. 11. INDEPENDENT STATUS The Supplier is an independent contractor, not an employee, and is responsible for its own tax and ACC levies. 12. DISPUTES AND LAW This agreement is governed by New Zealand law. Disputes will first be discussed, then referred to [mediation / arbitration / the courts]. Signed: Supplier ____________ Customer ____________ Date ______