Sponsorship Agreement (New Zealand)
This Sponsorship Agreement ("Agreement") is entered into as of [Start Date] (the "Effective Date") by and between:
[Sponsor Name] (NZBN [Sponsor NZBN]), with its principal place of business at [Sponsor Address], [Sponsor City] [Sponsor Postcode], represented by [Sponsor Contact Person] (the "Sponsor"); and
[Sponsored Party Name] (NZBN [Sponsored Party NZBN]), with its principal place of business at [Sponsored Party Address], [Sponsored Party City] [Sponsored Party Postcode] (the "Sponsored Party").
The Sponsor and the Sponsored Party are each referred to as a "Party" and collectively as the "Parties".
RECITALS
WHEREAS the Sponsored Party is organising or producing the following event or program: [Event Name] (the "Event"), described as follows: [Event Description]; and
WHEREAS the Event is scheduled to occur on [Event Date] at [Event Location]; and
WHEREAS the Sponsor desires to provide financial support to the Sponsored Party in connection with the Event in exchange for promotional benefits; and
WHEREAS the Parties wish to record their respective rights and obligations in this Agreement, which is governed by the Contract and Commercial Law Act 2017 (CCLA), the Fair Trading Act 1986 (FTA), the Goods and Services Tax Act 1985, and the Trade Marks Act 2002;
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the Parties agree as follows:
1. SPONSORSHIP LEVEL AND EXCLUSIVITY
1.1 The Sponsor shall serve as a [Sponsorship Level] level sponsor of the Event.
1.2 The Sponsor's exclusivity arrangement is: [Exclusivity]. The Sponsored Party shall not solicit, accept, or permit sponsorship from a competing entity within the Sponsor's product or service category without the Sponsor's prior written consent, to the extent applicable to the exclusivity arrangement.
1.3 All promotional representations made in connection with this sponsorship must comply with the Fair Trading Act 1986, which prohibits misleading or deceptive conduct in trade or commerce, and with the Advertising Standards Authority (ASA) codes applicable in New Zealand.
2. SPONSORSHIP FEE AND PAYMENT TERMS
2.1 In consideration for the rights and benefits granted under this Agreement, the Sponsor agrees to pay the Sponsored Party a total sponsorship fee of NZD $[Sponsorship Amount] (the "Sponsorship Fee"), exclusive of GST unless otherwise stated.
2.2 GST: The parties acknowledge that the Sponsorship Fee may be subject to Goods and Services Tax (GST) at the rate of 15% under the Goods and Services Tax Act 1985 (NZ) where the Sponsored Party is registered for GST. Where GST applies, the Sponsored Party shall issue a valid tax invoice and the Sponsor shall pay GST at 15% in addition to the Sponsorship Fee.
2.3 Payment shall be made [Payment Terms]. All payments shall be made in New Zealand dollars (NZD) by bank transfer to the account nominated by the Sponsored Party.
2.4 Late payment: If any instalment is not received within fourteen (14) days of the due date, the Sponsored Party may charge interest on the overdue amount at the rate of 10% per annum, calculated daily from the due date until the date of payment.
2.5 Tax deductibility: The Sponsor acknowledges that the deductibility of the Sponsorship Fee as a business expense under the Income Tax Act 2007 (NZ) depends on the commercial nexus between the sponsorship and the Sponsor's income-earning activities. The Sponsor is responsible for obtaining independent tax advice from a registered tax agent or Inland Revenue (IRD).
3. SPONSOR BENEFITS AND DELIVERABLES
3.1 In consideration for the Sponsorship Fee, the Sponsored Party shall provide the Sponsor with the following benefits and deliverables:
[Sponsor Deliverables]
3.2 The Sponsored Party shall use commercially reasonable efforts to deliver all benefits professionally and consistently with the Sponsor's brand standards. The Sponsored Party shall provide the Sponsor with reasonable prior notice of any promotional material featuring the Sponsor's name, logo, or trade marks and shall not publish or distribute such material without the Sponsor's prior written approval.
3.3 All deliverables shall comply with applicable advertising standards, including the Advertising Standards Authority (ASA) codes and the Fair Trading Act 1986.
4. TERM
4.1 This Agreement commences on [Start Date] and continues until [End Date] (the "Term"), unless earlier terminated in accordance with this Agreement. The Agreement shall automatically expire at the end of the Term unless renewed by mutual written agreement.
5. INTELLECTUAL PROPERTY AND TRADE MARKS
5.1 Each Party grants the other a limited, non-exclusive, non-transferable, royalty-free licence to use the granting Party's name, logo, trade marks, and other intellectual property solely in connection with the Event and as contemplated by this Agreement. All such use requires prior written approval, which shall not be unreasonably withheld or delayed.
5.2 Neither Party acquires ownership rights in the other Party's intellectual property by virtue of this Agreement. Upon termination or expiry, each Party shall cease all use of the other Party's intellectual property within thirty (30) days. The Parties acknowledge their obligations under the Trade Marks Act 2002 (NZ) in relation to authorised use of registered trade marks.
6. SPONSORED PARTY OBLIGATIONS
6.1 The Sponsored Party shall: (a) organise and produce the Event in a professional manner consistent with the representations made to the Sponsor; (b) deliver all sponsorship benefits and deliverables as specified in this Agreement; (c) maintain all required licences, permits, and public liability insurance necessary for the Event; (d) comply with all applicable New Zealand laws including the Fair Trading Act 1986, the Health and Safety at Work Act 2015, and any applicable local authority requirements; (e) handle all personal information in accordance with the Privacy Act 2020 (NZ); and (f) not engage in any conduct that would bring the Sponsor into disrepute.
7. TERMINATION
7.1 Either Party may terminate this Agreement on thirty (30) days' written notice if the other Party commits a material breach that remains uncured after the notice period. Upon termination by the Sponsor due to the Sponsored Party's breach, the Sponsor shall be entitled to a pro-rata refund of the Sponsorship Fee corresponding to benefits not yet delivered.
7.2 The Sponsor may terminate this Agreement immediately upon written notice if the Sponsored Party enters voluntary administration, is placed in receivership or liquidation, or enters into any arrangement with creditors under the Companies Act 1993 (NZ) or the Insolvency Act 2006 (NZ).
8. INDEMNIFICATION
8.1 Each Party agrees to indemnify, defend, and hold harmless the other Party and its officers, directors, employees, and agents from and against any claims, losses, damages, liabilities, costs, and expenses (including reasonable legal costs on a solicitor-client basis) arising out of or relating to: (a) that Party's breach of this Agreement; or (b) that Party's negligent or wilful acts or omissions in connection with the Event.
9. NOTICES
All notices under this Agreement shall be in writing and delivered by hand, registered post, or email with read receipt to:
Sponsor: [Sponsor Name], Attn: [Sponsor Contact Person], [Sponsor Address], [Sponsor City] [Sponsor Postcode], Email: [Sponsor Email], Phone: [Sponsor Phone]
Sponsored Party: [Sponsored Party Name], [Sponsored Party Address], [Sponsored Party City] [Sponsored Party Postcode], Email: [Sponsored Party Email], Phone: [Sponsored Party Phone]
10. GOVERNING LAW AND DISPUTE RESOLUTION
10.1 This Agreement is governed by the laws of New Zealand, including the Contract and Commercial Law Act 2017, the Fair Trading Act 1986, and the Goods and Services Tax Act 1985, without regard to conflict of laws principles.
10.2 Any dispute arising under or in connection with this Agreement shall be resolved through [Dispute Resolution]. The prevailing party shall be entitled to recover reasonable legal costs.
11. GENERAL PROVISIONS
11.1 Confidentiality: Each Party agrees to maintain the confidentiality of the financial terms of this Agreement and any proprietary information received from the other Party, and shall not disclose such information to third parties without prior written consent, except as required by law. Each Party must handle personal information in accordance with the Privacy Act 2020 (NZ).
11.2 Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior negotiations, representations, and understandings. This Agreement may only be amended by a written instrument signed by both Parties.
11.3 Severability: If any provision of this Agreement is found to be invalid or unenforceable under New Zealand law, it shall be severed to the minimum extent necessary, and the remaining provisions shall continue in full force and effect.
11.4 Waiver: A failure by either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's rights to enforce that provision in the future.
IN WITNESS WHEREOF, the Parties have executed this Sponsorship Agreement as of the Effective Date.
SPONSOR:
Name: [Sponsor Name]
Signed by: [Sponsor Contact Person]
Date: [Sponsor Sign Date]
SPONSORED PARTY:
Name: [Sponsored Party Name]
Date: [Sponsored Party Sign Date]
Sponsor
________________
Signature
Sponsored Party
________________
Signature
What Is a Sponsorship Agreement (New Zealand)?
A Sponsorship Agreement in New Zealand records the rights, fees, and obligations for the event, venue, or sponsorship arrangement between the parties under the Companies Act 1993.
In New Zealand, sponsorship agreements must address several distinct legal dimensions. The Income Tax Act 2007 governs the deductibility of sponsorship fees as business expenses, and the Goods and Services Tax Act 1985 governs the application of GST at 15% to sponsorship payments — New Zealand's 15% GST rate is higher than Australia's 10% rate. The Fair Trading Act 1986 prohibits misleading or deceptive representations in all promotional activities connected with the sponsorship. The Trade Marks Act 2002 governs the authorised use of each party's registered trade marks.
Sponsorship arrangements operate across many sectors of the New Zealand economy: corporate events, All Blacks and national sports team sponsorships, Super Rugby and provincial rugby, cricket, netball and football team sponsorships, arts festivals, community sporting club sponsorships, charity fundraising events, music festivals, and individual athlete sponsorships. In every case, the agreement should clearly define the sponsorship level, the total fee in NZD, GST treatment at 15%, the specific promotional deliverables, exclusivity arrangements, and the cancellation and refund policy.
A key distinction under New Zealand tax law is between a genuine commercial sponsorship and a non-deductible donation. A sponsorship payment that results in identifiable promotional benefits for the sponsor's business is generally deductible under the Income Tax Act 2007 as a business expense. A payment made with no expectation of commercial return may be treated as a non-deductible private expense (though donations to registered charities may qualify for a tax credit).
When Do You Need a Sponsorship Agreement (New Zealand)?
A written Sponsorship Agreement is needed whenever a business or individual in New Zealand agrees to provide financial or in-kind support in exchange for promotional benefits, however informal the arrangement may seem.
For businesses, a written agreement is essential to substantiate the commercial nexus between the sponsorship payment and the sponsor's income-earning activities — a requirement for the payment to be deductible under the Income Tax Act 2007. Without a written agreement specifying the promotional benefits received, Inland Revenue may characterise the payment as a non-deductible donation or private expense.
For event organisers and sponsored parties, a clear written agreement protects against disputes about what benefits were promised, confirms the sponsor's branding is used correctly and consistently with their trade mark rights under the Trade Marks Act 2002, and provides a clear framework for what happens if the event is cancelled or postponed.
A Sponsorship Agreement is particularly important in New Zealand for events with significant reputational consequences for the sponsor, where exclusivity arrangements are a key commercial term, where GST compliance at 15% is important, or where there is a real risk of cancellation due to adverse weather (such as events held outdoors in New Zealand's variable climate) or other force majeure events. Even for smaller community club or charity sponsorships, a simple written agreement prevents misunderstandings about promised deliverables and protects both parties.
What to Include in Your Sponsorship Agreement (New Zealand)
A well-drafted New Zealand Sponsorship Agreement should address the following key elements.
Party identification should include the full legal name, NZBN, and address of both the Sponsor and the Sponsored Party. NZBNs are important for GST compliance and business identification.
The event description clause should clearly describe the event, program, or individual being sponsored, including the expected audience, location, date, and nature of the activities. The Fair Trading Act 1986 requires all representations to be accurate and not misleading.
The sponsorship fee and GST clause should state the total fee in NZD, confirm whether it is inclusive or exclusive of GST at 15%, specify the payment schedule (lump sum or instalments), and confirm the Sponsored Party's obligation to issue a valid tax invoice where they are GST-registered.
The deliverables clause should list all promotional benefits with precision: logo placement specifications (size, placement, priority), number of delegate passes, exhibition space dimensions, speaking slots (duration, positioning), social media post requirements (number, platforms, timing), and any category exclusivity.
The intellectual property clause should grant each party a limited licence to use the other's branding solely in connection with the event, require prior written approval for all branded content, and confirm that ownership is not transferred. Reference should be made to the Trade Marks Act 2002 and the Copyright Act 1994.
The cancellation and force majeure clause should address what happens if the event is cancelled, postponed, or materially altered, and specify refund entitlements clearly. References to government directions under the Civil Defence Emergency Management Act 2002 or health legislation are appropriate.
The governing law clause should confirm that the agreement is governed by the laws of New Zealand, including the Contract and Commercial Law Act 2017, the Fair Trading Act 1986, and the Goods and Services Tax Act 1985, and provide for an efficient dispute resolution mechanism. The forms-legal.com Sponsorship Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Sponsorship Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/business/contracts/sponsorship-agreement-new-zealand
"Sponsorship Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/business/contracts/sponsorship-agreement-new-zealand.
@misc{formslegal-sponsorship-agreement-new-zealand,
author = {{Forms Legal}},
title = {Sponsorship Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/business/contracts/sponsorship-agreement-new-zealand}},
note = {Free legal document template. Based on Companies Act 1993}
}
Frequently Asked Questions
A sponsorship payment may be deductible as a business expense under the Income Tax Act 2007 (NZ) if it is incurred in deriving assessable income and there is a genuine commercial nexus between the sponsorship and the sponsor's income-earning activities. Where the sponsor receives identifiable promotional benefits — such as logo placement, brand exposure, speaking opportunities, and media mentions — the payment is more likely to be characterised as a deductible business expense. By contrast, a payment made with no expectation of commercial return, or made as a donation to a registered charity, may be treated differently for tax purposes (though charitable donations may qualify for a tax credit under the Income Tax Act 2007). GST at 15% is generally applicable to sponsorship payments where the sponsored party is GST-registered. Always consult a registered tax agent or Inland Revenue for advice specific to your circumstances.
The Fair Trading Act 1986 (FTA) prohibits conduct in trade or commerce that is misleading or deceptive or is likely to mislead or deceive, and applies to all representations made in connection with a sponsorship. The sponsored party must not make false or overstated representations about the event — such as inflated attendance figures, exaggerated audience demographics, or false claims about media coverage — to attract sponsorship. Similarly, the sponsor must not make misleading representations about the nature or extent of its association with the event. Promotional content produced in connection with the sponsorship must also comply with the Advertising Standards Authority (ASA) codes. The Commerce Commission enforces the Fair Trading Act 1986 and may take action against businesses that engage in misleading conduct.
Under the Goods and Services Tax Act 1985 (NZ), a payment made in exchange for promotional benefits is generally a taxable supply subject to GST at 15%. This is higher than the 10% GST rate in Australia. The sponsored party, if registered for GST, must issue a valid tax invoice to the sponsor, and the sponsor can claim an input tax credit for the GST paid (provided the expense is related to the sponsor's business activities). The sponsorship agreement should clearly state whether the sponsorship fee is expressed inclusive or exclusive of GST at 15%, and include a clause confirming the sponsored party's obligation to issue a tax invoice. If the sponsored party is not registered for GST (e.g. a small community club below the NZD $60,000 GST registration threshold), the agreement should reflect this. The GST registration threshold in New Zealand is NZD $60,000 of taxable supplies in any 12-month period.
If an event is cancelled or postponed, the parties' rights depend on what the sponsorship agreement says. Without a clear cancellation clause, the parties may need to fall back on general contract law principles — including the doctrine of frustration under the Contract and Commercial Law Act 2017 (CCLA), which applies when an unforeseen event makes the contract impossible to perform. A well-drafted New Zealand sponsorship agreement should include express provisions addressing: whether the sponsor is entitled to a full refund, partial refund, or pro-rata refund based on benefits already delivered; what constitutes a force majeure event (e.g. natural disaster, pandemic, government direction under the Civil Defence Emergency Management Act 2002); the sponsored party's obligation to notify the sponsor promptly; and whether the sponsor may elect to transfer its sponsorship to a rescheduled event. New Zealand has experienced significant event cancellations due to COVID-19 and adverse weather events, highlighting the importance of clear cancellation provisions.
Yes. Sponsorship arrangements involve the use of each party's intellectual property — logos, trade marks, brand names, event names, photographs, and social media content. Under the Trade Marks Act 2002 (NZ), an authorised use of a registered trade mark must meet the requirements of the Act. The sponsorship agreement should include a clear licence clause granting each party a limited, non-exclusive, non-transferable licence to use the other party's intellectual property solely in connection with the event, subject to prior written approval. The agreement should specify that ownership of each party's intellectual property is not affected by the agreement, that the licence terminates when the agreement ends, and that neither party may use the other's trade marks in a way that is misleading, defamatory, or inconsistent with the brand owner's guidelines. Copyright in original works created for the event (e.g. photographs, video content) is governed by the Copyright Act 1994 (NZ), and ownership should be expressly addressed.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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