Co-Working Space Agreement (New Zealand)

A co-working space agreement in New Zealand is typically structured as a licence to occupy rather than a lease. The distinction is important because a lease creates an exclusive possessory interest in land (an interest in property), while a licence merely permits the licensee to use the space without conferring an exclusive right to possession. Under the Property Law Act 2007, a lease creates a legal interest in land that can be registered on the title and binds third parties; a licence does not. For a co-working operator, structuring the arrangement as a licence is beneficial because: the member cannot exclude the operator from the space; the operator retains flexibility to reallocate desks; the arrangement does not trigger the Residential Tenancies Act 1986 or the commercial lease provisions of the Property Law Act 2007; and the licence is easier to terminate on short notice. To requires the agreement is treated as a licence rather than a lease, it should grant non-exclusive use of a particular zone or desk (rather than a defined space with exclusive possession), and the operator should retain the ability to relocate the member with reasonable notice.

Under the Goods and Services Tax Act 1985, the supply of co-working space services by a GST-registered operator to a member is a taxable supply subject to GST at 15%. The operator must charge GST on the membership fee and issue valid tax invoices to members who are GST-registered businesses. GST-registered members may claim an input tax credit for the GST component of their membership fee, subject to the normal rules about business use. If the co-working space operator also charges separately for ancillary services — such as printing, phone lines, refreshments, or meeting room hire — each component may be subject to GST. The operator must register for GST if their taxable supplies exceed NZD $60,000 in any 12-month period. Co-working operators should maintain accurate records of membership fees, additional charges, and tax invoices issued to comply with their GST obligations under the Tax Administration Act 1994.

Co-working space operators in New Zealand are subject to the Health and Safety at Work Act 2015 (HSWA 2015) as persons conducting a business or undertaking (PCBUs). Under the HSWA 2015, PCBUs owe a primary duty of care to ensure, so far as is reasonably practicable, the health and safety of their workers and any other person who may be at risk from work carried out in the business. In a co-working space, the operator is a PCBU and each member business is also a PCBU. Where two or more PCBUs share a workplace, they must consult, cooperate, and coordinate with each other to requires the health and safety of all people in the workplace. The co-working space agreement should specify each party's health and safety obligations and confirm that members must comply with the operator's health and safety policies and house rules. The operator is also responsible for emergency procedures, fire safety compliance under the Building Act 2004, and ensuring that the premises have a current Building Warrant of Fitness (BWoF) issued by the territorial authority.

A New Zealand co-working space agreement should include provisions addressing the use of shared internet services and data privacy obligations. Under the Privacy Act 2020, any operator who collects personal information from members (including name, contact details, payment information, and access card data) must comply with the Information Privacy Principles (IPPs). This includes obligations to collect information directly from members where practicable, to inform members of the purpose for which their information is collected, to store it securely, and not to disclose it to third parties without consent. The agreement should also include an acceptable use policy for the shared internet and IT infrastructure, prohibiting illegal downloads, hacking, spamming, and other activities that may create liability for the operator. The operator should make it clear that the shared internet connection is not encrypted and that members are responsible for their own data security when using shared networks. The agreement should also address CCTV monitoring in common areas and compliance with the Privacy Act 2020 requirements for surveillance.

A Co-Working Space Agreement (New Zealand) does not legally require a lawyer in New Zealand, and individuals and businesses may draft and execute the document independently. The Companies Act 1993 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified New Zealand lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The High Court of New Zealand has jurisdiction over disputes arising from this type of document, and Companies Office may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.