New Zealand ·
October 2026

Sole traders still enjoy their self-employment, but the economy is weak and money is tight for many. The Pulse edged up to 57, with work-life balance and satisfaction the highest-rated measures and the economy the lowest at 44.

The Pulse this quarter

57 Doing well

A one-point rise on June, taking the Pulse into the Doing well band. The falls of a year ago have been locked in rather than reversed.

Pulse score since October 2021

Pulse score since October 2021
Track	Pulse score
Oct 21	52
Mar 22	56
Jun 22	57
Oct 22	59
Mar 23	55
Jun 23	59
Oct 23	60
Mar 24	65
Jul 24	63
Oct 24	65
Mar 25	60
Jun 25	63
Oct 25	57
Mar 26	59
Jun 26	56
Oct 26	57

How to read the Pulse

Every quarter, 500 New Zealand sole traders rate ten aspects of their business and personal life. We combine the ten ratings into one Pulse score out of 100. A score of 50 is neutral, and we group scores into five bands, from ‘In trouble’ to ‘Thriving’.

Pulse 57

In trouble

below 35

Under pressure

35 to 44

Neutral

45 to 54

Doing well

55 to 64

Thriving

65 and above

The economy is the weakest of the ten measures, and sole traders do not expect much improvement

Sole traders rate the economy at 44, unchanged on June, and 50 in six months’ time. 72% say their customers are being more careful with their spending.
Sole traders believe their own business will outperform the economy, which is what is keeping the Pulse in the Doing well band, rating their own business performance at 55 right now and 56 for the next quarter.

The ten measures score out of 100, October 2026; tick shows June

The ten measures, score out of 100, October 2026; tick shows June
Item	The ten measures	June 2026
Work-life balance	66	64
Personal satisfaction	65	62
Well-being	61	60
Financial security	60	57
Job security	60	63
Business performance, next quarter	56	55
Business performance, right now	55	54
Business performance, last quarter	54	54
The economy in six months	50	49
The economy right now	44	44

But sole traders still love being self-employed, and most say it has been good for their mental health

Work-life balance (66), personal satisfaction (65) and well-being (61) are the highest of the ten measures, and all three are up on June.
Self-employment itself is good for most people’s well-being; it is the last two years of economic conditions that have taken a toll.
30% say their mental health and well-being has improved since becoming a sole trader, against 11% who say it has got worse. And 57% reject the idea that their mental health is worse than it was one to two years ago, with just 25% saying it is.

Mental health and well-being since becoming a sole trader % of those trading less than 10 years

Mental health and well-being since becoming a sole trader, % of those trading less than 10 years
Response	Share
Got better	30%
Stayed about the same	59%
Got worse	11%

“My mental health is worse than it was 1-2 years ago” % of sole traders

“My mental health is worse than it was 1-2 years ago”, % of sole traders
Response	Share
Agree	25%
Disagree	57%
Undecided	18%

Income is flat in real terms, buffers are thin, and fuel costs are still biting

More report higher turnover than lower this quarter, but the average amount has barely changed

47% say turnover this quarter is higher than last, and the gap between those reporting higher and lower turnover (+16 points) is narrower than in June (+24).
Despite this, the average quarterly income amount barely changed: $19,500 this quarter, against $19,400 the quarter before. Factoring in cost of living increases, this is likely inflation rather than actual growth.

Turnover this quarter vs last % reporting higher (above the line) and lower (below), each track since October 2021

Turnover this quarter vs last, % reporting higher (above the line) and lower (below), each track since October 2021
Track	Higher than last quarter	Lower	Net (higher minus lower)
Oct 21	31%	46%	-15
Mar 22	38%	41%	-3
Jun 22	55%	26%	+28
Oct 22	47%	26%	+21
Mar 23	40%	40%	+0
Jun 23	49%	25%	+24
Oct 23	43%	28%	+14
Mar 24	43%	38%	+5
Jul 24	50%	27%	+23
Oct 24	54%	23%	+30
Mar 25	40%	39%	+1
Jun 25	54%	24%	+30
Oct 25	43%	31%	+12
Mar 26	50%	35%	+15
Jun 26	51%	28%	+24
Oct 26	47%	31%	+16

Half rate their financial security as good, but many have little buffer

49% rate their financial security as good, up from 40% in June and back to the level of a year ago.
Inflation is also squeezing demand: 72% say their customers are being more careful with their spending, up from 63% in March 2023. The result is thin buffers: almost two-thirds are breaking even or earning less than they spend, and half would struggle to cover a major business expense.
If they could not work for a month, household income would fall a little for 34%, fall a lot for 24% and stop altogether for 17%. Only for 20% would it be largely unchanged.

Financial security rated ‘good’ % of sole traders

Financial security rated ‘good’, % of sole traders
Point	Value
Oct 22	47%
Mar 23	45%
Jun 23	45%
Oct 23	44%
Mar 24	46%
Jul 24	45%
Oct 24	50%
Mar 25	43%
Jun 25	50%
Oct 25	43%
Mar 26	47%
Jun 26	40%
Oct 26	49%

Thin buffers % of sole traders agreeing

Thin buffers, % of sole traders agreeing
Item	Thin buffers
Breaking even or earning less	62%
Would struggle with a major expense	51%
Would need help to survive a downturn	42%

Spending on tax and financial affairs has fallen to $225 a month, and those using apps spend the least

Average monthly spend on managing tax and financial affairs is $225, down from $253 in June. Those who use a program or app and nothing else spend $87; an accountant is the most expensive option.
Accountants are also the most expensive and most time-consuming option: those using one spend $414 a month and around 7 hours a week on their affairs, and are no more comfortable managing them (73%) than those using a program or app (82%), who spend $139 and 6 hours (this includes people who use an app alongside other help, which is why it is higher than the $87 for app-only users).

Monthly spend by type of help used average $ per month among everyone using each type of help, including alongside other help; comfortable managing affairs in brackets

Monthly spend by type of help used, average $ per month among everyone using each type of help, including alongside other help; comfortable managing affairs in brackets
Item	Monthly spend by type of help used
Accountant (73% comfortable)	$414
Family or friend (63%)	$309
Tax agent (85%, small sample)	$273
Programs and apps (82%)	$139
No help at all (78%)	$91

The fuel crisis is still affecting four in ten businesses

The fuel crisis has settled into a persistent cost rather than a passing shock for four in ten businesses, with 41% saying higher fuel prices and shortages are still having a large impact, in line with June (42%).
Eight in ten drivers (79%) have changed how they operate: 49% are driving less and 28% are cutting back on other purchases, such as groceries, to absorb the cost.

Impact of the fuel crisis on the business % of sole traders, October 2026

Impact of the fuel crisis on the business, % of sole traders, October 2026
Response	Share
Very significant	14%
Significant	27%
Small	39%
None	17%
Unsure	3%

Only a minority of sole traders feel represented in policy, and they are split on compulsory KiwiSaver but united on lifting the GST threshold

Fewer than three in ten feel sole traders are well represented in policy making

29% feel sole traders have been well represented in policy making in the lead-up to the election, up from 22% in June; 52% say poorly. Tradies are the most likely to feel included (48%).
Sole traders want the whole settings package looked at rather than one fix: a majority rate every policy area tested as important, led by a simpler tax system (70%) and training for skills shortages (69%), ahead of lower income tax (55%).

What sole traders want government to look at % rating each policy area as important

What sole traders want government to look at, % rating each policy area as important
Item	What sole traders want government to look at
A simpler tax system	70%
Training for skills shortages	69%
Lower other taxes and charges	62%
Grants for small business	60%
KiwiSaver tax relief or matching	57%
Reduce income tax	55%
Lift GST threshold to $75,000	51%

Six in ten support lifting the GST threshold to $75,000

The $60,000 threshold is causing sole traders to turn away work, mostly by not taking on new work, which is a cost to the economy as well as to them. Of those not registered, 37% stay under the threshold on purpose, and 40% of those registered believe they have lost business by having to charge GST.
61% support raising the threshold to $75,000; 13% oppose it.

Sole traders are deliberately staying under the threshold how they stay under $60,000, % of those doing so on purpose

Sole traders are deliberately staying under the threshold, how they stay under $60,000, % of those doing so on purpose
Item	Sole traders are deliberately staying under the threshold
Stopped taking on new work for a period	54%
Turned down a new client	19%
Delayed sending an invoice	13%
Asked a client to split or defer payment	10%

Support for raising the GST threshold to $75,000 % of sole traders

Support for raising the GST threshold to $75,000, % of sole traders
Response	Share
Support	61%
Undecided	26%
Oppose	13%

Compulsory KiwiSaver for the self-employed has more opponents than supporters

38% oppose the proposal to make self-employed people contribute to KiwiSaver, starting at 4% of income in 2028 and rising to 6% by 2032, while only 30% support it. Fewer than half (45%) say a 4% contribution would be easy to manage.
The main concerns are saving less elsewhere (30%), cashflow pressure (24%), lower margins (22%) and having to raise prices (21%). 15% would consider stopping self-employment altogether.

Compulsory KiwiSaver for the self-employed % of sole traders

Compulsory KiwiSaver for the self-employed, % of sole traders
Response	Share
Support	30%
Neutral	32%
Oppose	38%

What it would mean for them % of sole traders

What it would mean for them, % of sole traders
Item	What it would mean for them
Would save less elsewhere	30%
Cashflow pressure	24%
Margins would suffer	22%
Would raise prices	21%
Would consider quitting	15%

About this research

Source: Hnry Sole Trader Pulse, Track 16. Fieldwork 6–19 October 2026, n=500 New Zealand sole traders, maximum error margin ±4.4%. Polling by Resolve Strategic.

Pulse scores are out of 100, with 50 neutral; bands are in steps of ten.

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