Painting Business Overheads in NZ

Typical annual overheads for an NZ painting business are $12,000–$26,000 for a sole trader. Major costs include vehicle expenses ($5,000–$10,000/yr), insurance ($2,000–$5,000/yr), ACC levies ($2,000–$4,000/yr), tools and equipment ($1,000–$3,000/yr), admin ($1,000–$2,000/yr), and marketing ($500–$2,000/yr). Your overhead rate should be 10–20% of every quote. NZ painter pricing data — updated April 2026.

Prices last updated: April 2026

Who This Guide Is For

Painters Who Don't Track Overheads

You're covering materials and labour in your quotes but not your real business costs — and wondering where the money goes.

Build overheads into your quotes

New Business Owners

You're starting a painting business and need to understand the ongoing costs beyond paint and wages.

Established Painters Reviewing Costs

You want to benchmark your overheads against industry norms and find areas to reduce costs.

Annual Overhead Summary

Vehicle
$5,000–$10,000/yr
Fuel, maintenance, rego
Insurance
$2,000–$5,000/yr
All policies
ACC Levies
$2,000–$4,000/yr
Self-employed
Tools & Equipment
$1,000–$3,000/yr
Replacement and repair

Annual Overhead Breakdown

CategoryLow EstimateHigh EstimateNotes
Vehicle (fuel, maintenance, rego)$5,000$10,000Work van or ute
Insurance (all policies)$2,000$5,000Public liability, vehicle, tools
ACC levies$2,000$4,000Based on earnings
Tools & equipment$1,000$3,000Replacement and repairs
Admin & accounting$1,000$2,000Software, accountant, phone
Marketing$500$2,000Online listings, cards, website
Total annual overheads$11,500$26,000Sole trader

What Are Business Overheads?

Overheads are the costs of running your business that aren't directly tied to a specific job. They include:

  • Fixed costs — Insurance, ACC, vehicle registration, accounting software, phone plan. These stay roughly the same regardless of how many jobs you do.
  • Variable costs — Fuel, tool replacement, marketing spend. These increase as you do more work.

Many painters only account for materials and labour when quoting, then wonder why they're not making money. If your overheads are $20,000/year and you do 40 jobs, each job needs to carry $500 in overhead costs — before you add any profit margin.

Common Overhead Costs for NZ Painters

Here's what a typical sole trader painting business spends annually:

  • Vehicle costs ($5,000–$10,000/yr) — Fuel ($2,000–$4,000), maintenance and repairs ($1,000–$3,000), registration and WOF ($500), road user charges if diesel ($500–$1,500).
  • Insurance ($2,000–$5,000/yr) — Public liability, statutory liability, vehicle, and tools cover. See our insurance guide for a detailed breakdown of what you need.
  • ACC levies ($2,000–$4,000/yr) — Compulsory for all self-employed workers in NZ. Based on your annual earnings and the painting industry levy rate.
  • Tools and equipment ($1,000–$3,000/yr) — Roller sleeves, brushes, tape, and small tools need regular replacement. Budget for occasional big-ticket items like sprayer parts or ladder upgrades.
  • Admin and accounting ($1,000–$2,000/yr)Xero or accounting software ($30–$50/month), accountant fees ($500–$1,500/year), phone ($50–$100/month).
  • Marketing ($500–$2,000/yr) — Google Business Profile (free), Trade Me listing ($200–$500/year), business cards, and website hosting.

Calculating Your Overhead Rate

Your overhead rate tells you how much to add to every job to cover business costs:

  • Step 1 — Add up all annual overheads. Example: $18,000/year.
  • Step 2 — Estimate your annual billable hours. Realistically 1,400–1,600 hours for a sole trader (not 2,080 — you'll lose time to quoting, travel, rain days, and admin).
  • Step 3 — Divide overheads by billable hours. Example: $18,000 ÷ 1,500 = $12/hr overhead rate.
  • Step 4 — Add this to your hourly labour cost. If your wage target is $35/hr and overheads are $12/hr, your minimum charge-out rate before profit is $47/hr.

As a percentage, overheads represent 10–20% of your total quote value. If your quotes consistently show less than 10% overhead allocation, you're probably undercharging. Use our pricing guide to check your formula.

Make Sure Every Quote Covers Your Costs

Build overheads, materials, labour, and margin into every quote automatically. Stop leaving money on the table.

Building Overheads Into Your Quotes

There are two common methods for including overheads in quotes:

  • Hourly rate method — Add your overhead rate ($10–$15/hr) directly to your charge-out rate. Your rate of $45–$75/hr should already include overheads. See our hourly rate guide for benchmarks.
  • Percentage method — Calculate materials + labour, then add 10–20% for overheads. This is simpler but less precise for individual jobs.

Whichever method you use, the key is consistency. Apply overheads to every quote, every time. Even small jobs need to contribute to your overhead costs.

For a step-by-step process, see our quoting guide which covers how to build overheads into a professional quote.

Data References

  • Stats NZ — Regional economic data and labour market statistics.

Frequently Asked Questions

What percentage should overheads be in a painting quote?

Overheads should be 10–20% of your total quote value. For a sole trader with $15,000–$20,000 in annual overheads, this usually works out to $10–$15 per billable hour added to your charge-out rate.

Do I need to track overheads if I'm a sole trader?

Yes. Even sole traders have significant overheads — vehicle costs, insurance, ACC, tools, and admin. If you're not tracking and recovering these costs in your quotes, you're effectively working for less than you think. Track all business expenses monthly.

How can I reduce my painting business overheads?

Compare insurance quotes annually, maintain your vehicle to avoid expensive repairs, buy quality tools that last longer, use accounting software instead of a full-time accountant, and focus marketing spend on what actually generates leads (usually Google Business Profile and word of mouth).

Should I include my own wages as an overhead?

No. Your wages (or drawings) are a separate cost, not an overhead. Overheads are the costs of running the business on top of labour and materials. Your quote formula should be: Labour + Materials + Overheads + Profit Margin.

Make Sure Every Quote Covers Your Costs

Build overheads, materials, labour, and margin into every quote automatically. Stop leaving money on the table.