Minister outlines benefits for New Zealanders of a transformed Inland Revenue

Revenue Minister Todd McClay outlined the benefits of a transformed Inland Revenue today, while announcing the first stage of a programme that will make interacting with Inland Revenue easier and less costly for New Zealanders.

In a speech to business leaders in Wellington, Minister McClay said the Government was committed to making it easier for both people and business to interact with Inland Revenue, which was the aim of a major, long-term transformation programme.

“This is the biggest transformation in the department’s history, and we’re committed to doing it right,” says Mr McClay, who will personally oversee the process.

“As Minister, I will provide political leadership of this large and complex process, while Inland Revenue will lead operational matters. New Zealanders need easy, reliable and timely ways to deal with Government, and this project is part of Government’s push for better public services.”

The programme incorporates changes in processes, skills and capabilities, and IT to deliver a modern, fit-for-purpose tax system. Inland Revenue’s role had grown over the past 20 years from administering nine tax products to managing 42 services on a range of social policies such as KiwiSaver, student loans, child support and Working for Families.

“The department’s business processes and technology systems have adapted with that growth, but they’re being put under increasing strain. We now need a system that reduces compliance costs and lets people engage with us quickly, simply, and increasingly online.

“Today, Inland Revenue have released a document which sets out its direction and vision for the future, and the next steps in the process,” says Mr McClay.

“It is envisaged that the capability and capacity required will come from both New Zealand and overseas. There will be short and longer term opportunities for the New Zealand market to participate in designing and building significant parts of the process.”

Inland Revenue had already undertaken significant work on the project, and the next phase was about finding service providers to help the department fundamentally transform the way it interacted with New Zealanders.

A transformed Inland Revenue will allow New Zealanders to simply and efficiently manage their interactions through online services. It will reduce compliance costs and time spent on tax for New Zealand businesses; allow the Government to maintain crown revenue, reduce debt, and initiate new tax and social policy initiatives while sharing information across Government departments. Throughout this process it will ensure New Zealanders retain confidence that their private information will be secure and respected.

In the next few weeks, Inland Revenue will be holding meetings in Christchurch, Wellington and Auckland to engage with the tax and IT sectors to explain the scale and complexity of the transformation and to provide details about the proposed process.

“The scale of this transformation is huge, and this is only the first step of a long-term and multiple stage process. Inland Revenue is working hard to ensure these changes will deliver real benefits to New Zealanders,” says Mr McClay.

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