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Statement of Intent - 2004 - Part 1

Choosing the right activities to achieve our outcomes -page 18-19

New Zealand's changing population and increasing diversity

There is increasing diversity in New Zealand's population, including changes in the cultural profile, age structure, and geographic distribution of the population. Each of these factors will have a significant effect on how we think about the design and delivery of our services.

Although this is a national theme, it is more starkly evident in some regions. For example, current statistics for the Auckland region show that it contains:

  • 30% of the New Zealand population, with forecasts showing 36% by 2021
  • 33% of the labour force and 35% of all business enterprises, both of which are forecast to increase.

Changes in the demographic profile will impact significantly on how we relate to the community and develop our capabilities. Sometimes it will be appropriate to provide universal services; sometimes we need to address the specific needs of communities with targeted services. For example, our advisory services are tailored to different groups within the community, business and tax profession.

The changing composition of New Zealand 's families will also raise issues for our social support programme functions. For example:

  • In 2001, 31% of families with children were one-parent families, up from 26% in 1991
  • 16% of children lived in households with an annual income of $20,000 or less and 26% lived in households with an annual income of over $70,000*.

* 2001 Census Snapshot 13: Children. Statistics New Zealand , August 2002.

The increase in one-parent families will impact on the demand for both our child support service provision and family assistance services.

Public perception of tax administration

People are more likely to voluntarily comply with their obligations if they have a good understanding of what they are and what they need to do to meet them. However, any change in public perception of our administration can also have an impact on the level of compliance and affect our ability to achieve our outcomes.

To maintain public confidence, we need to demonstrate that we are administering the law in an open and transparent manner. There are a number of checks and balances that ensure we are appropriately applying the law, including our Code of Conduct and Charter, our Complaints Management Service and parliamentary and public scrutiny.

Other issues associated with this factor include: the public's attitude towards how government agencies in general administer their particular functions; enhancing our understanding of the behavioural factors that influence taxpayer compliance and the barriers to people meeting their obligations of their own accord, and changes in the public's attitude to accumulating personal debt.

The latter issue is particularly pertinent for us in terms of people meeting their obligations in full and on time. Reserve Bank of New Zealand research on this issue identified increasing household indebtedness over the last ten to fifteen years arising from increased access to credit. They also concluded that increased household indebtedness made households more susceptible to liquidity problems should they face an adverse income shock*.

* Financial deregulation and household indebtedness DP2003/01. Reserve Bank of New Zealand , January 2003.

 

 

 


Date published: 16 Nov 2004

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