General

Funding and other government help Te pūtea me ētahi atu āwhina a te kāwanatanga

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If you’re a sole trader or contractor, you may be entitled to government benefits and other programmes to help with starting out, paying tax and saving for retirement.

Benefits and subsidies

Becoming a contractor, sole trader or starting a business can affect any Work and Income benefits you get. 

If you get income support, your benefit payments usually stop when you start a full-time business, including going contracting. It may be different if you have a family – for example, you may still get help with housing and childcare costs. 

Ask your Work and Income case manager how your income support will change and any extra help you may get. 

Childcare subsidies

Subsidies for pre-school and out-of-school care are available to many working parents. Contact Work and Income to find out if you’re eligible. 

Flexi-wage subsidy

Flexi-Wage for self-employment is a subsidy that you may be able to get when you want to start a business. You may be able to get help if:

  • you or your partner get government assistance, for example benefits
  • you are not bankrupt
  • you are a New Zealand citizen or permanent resident. 

What you get depends on your financial situation and your business needs. Ask your Work and Income case manager about how to apply.  

Self-employmentWork and IncomeChildcare subsidyWork and IncomeFlexi-wageWork and Income

Support from Inland Revenue

  1. Step01

    Working for Families

    If you’re a sole trader, contractor or employee, Working for Families make it easier to raise a family while you’re working.

    Inland Revenue’s website has more information.

    Working for Families Inland Revenue
  2. Step02

    Parental leave

    If you or your partner is having a baby or taking permanent responsibility for the care of a child under 6, you may be entitled to paid parental leave.

    How to qualify for parental leave

    You’re eligible for paid parental leave if you’ve been self-employed for an average of 10 hours a week (at a minimum), for any 26 of the 52 weeks (at a minimum) up to your due date or when the child comes into your care.

    Your entitlement won't be affected if you stop being self-employed instead of or while you’re on parental leave.

    Paid parental leaveInland Revenue

Grants and funding

Work and Income offer a Business Training and Advice grant to help with the cost of training and advice. This includes using a business advisor when you want to start your own business. 

You can apply if:

  • you or your partner get government assistance
  • you’re a New Zealand citizen or permanent resident
  • you’re planning to take up, or are already getting, the Flexi-Wage Self Employment subsidy.

There are other types of grants and support available across government, to support you at different stages in your business journey. Read our information on government grants to find out more.

Applying for the Business Training and Advice grantWork and IncomeGetting government grants

Support for hiring staff

No matter how long you’ve been in business, hiring your first employee is a real milestone and an exciting step to take. In the rush to get someone on board, however, it can be easy to forget all there is to do. 

The first step is confirming what kind of help you’re going to get. We have guidance on how to hire the right employee type and a visual guide that explains what different employees offer. 

To hire staff, you must be registered as an employer with Inland Revenue and meet certain obligations. Most sole traders start out as the only person working in their business. That means you’re responsible for your dealings with government agencies, such as ACC and Inland Revenue. 

Hiring for the first timeRegistering with government agenciesStaff types

LAST REVIEWED: 14th July 2025

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