Hon Peter Dunne
Minister of Revenue
1 May 2013
Media Statement

Dunne: Cabinet Approves Major IRD Work
 
Cabinet has told Inland Revenue to work on the next stage of major, long-term systems changes that will deliver new, streamlined services for New Zealand individuals and businesses, Revenue Minister Peter Dunne said today.
 
He said Cabinet has approved in principle the case for major change at Inland Revenue and asked officials continue with the work.
 
“It will be a substantial and complex project on a very large scale.
 
“The department’s revenue system began simply as a tax system, but over the years it has had to take on everything from child support, to student loans, to KiwiSaver and Working for Families.
 
“Basically, system modifications, manual interventions and workarounds have spoken volumes for Kiwi ingenuity, but have resulted in layers of complexity for government and customers alike,” he said.
 
“It is fair to say the revenue system is at capacity, and the Government recognises the need for a substantive transformation programme to shape Inland Revenue to best serve New Zealand in the future.”
 
Inland Revenue currently collects about 80 percent of core Crown revenue, and has been taking increasing steps to meet taxpayer needs in the digital age.
 
“More than 1.2 million customers now use online options, and something like 630,000 use voice ID to verify their identity, with a further 24,000 using Inland Revenue’s mobile web application.
 
“The transformation work will continue taking us in that direction,” Mr Dunne said.
 
The cost of the programme, which will be rolled out in stages, has previously been estimated to be in the range of $1 billion to $1.5 billion over a 10-year period.
 
“In the end, it is about making it easier for New Zealanders to meet their tax obligations and get what they are entitled to, and it is part of the Government’s overall push for better public services for Kiwis.”
 
Over the coming months, Inland Revenue will work on developing the proposals for an approach to working with taxpayers, and its suppliers and service providers.
 
“It is critical that New Zealanders continue to have faith in the integrity of the tax system, so we need to do this well,” Mr Dunne said.
 
He said that an important part of the process will be keeping New Zealanders informed as the transformation project develops.
 
Initial background reports on Inland Revenue’s work programme are available on its website at http://www.ird.govt.nz/aboutir/reports/business-transformation/
 
Papers will be published regularly as the work proceeds, Mr Dunne said.
 
ENDS

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