myIR, payments and more
Business transformation is an end-to-end business change to bring New Zealand's tax administration into the modern world. It involves our people, processes, policy and technology and will be delivered in four stages.
What business transformation is
Business transformation is a multi-year, multi-stage change programme that will modernise New Zealand's tax service to make it simpler and faster for New Zealanders to pay their taxes and give more certainty that they'll receive their entitlements.
Technology alone won't achieve this modernisation. The changes will simplify and streamline our business processes, policies and customer services as well as upgrade our technology platform. The new system will give us more flexibility and speed to implement future changes in tax and social policies.
Download the Inland Revenue business transformation one page summary
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Full scale transformation
The business transformation is made up of multiple layers and explains:
- how our people will deliver customer service
- our business processes
- how we’ll manage data securely
- our vision for simplifying policy, and
- how we'll upgrade our technology platform.
Streamlined processes, advanced tools and more intelligent use of data will provide our people with a single view of the customer and their needs. They will have the skills to proactively support customers to get their tax right from the start rather than reacting when things go wrong.
Improved information flows and automated processing will reduce face-to-face and telephone contact, and simplify support for customers who will increasingly use self-service online channels.
Simplifying and streamlining our services may require policy change throughout each stage of business transformation. Modern systems and processes will allow us to simplify policy and legislation, and respond to and implement policy changes quickly. This will include possible changes to the Tax Administration Act 1994 and other legislation. Since March 2015, the Government has been seeking public feedback on new proposals aimed at making tax simpler.
Technology is the enabler of our business transformation. Our Information and Communications Technology (ICT) strategy is to move away from building and maintaining infrastructure to using standard off-the-shelf software solutions as a series of flexible building blocks. A single information hub will move information between individuals, businesses and government to improve service and speed up processing time. Following the all-of-government ICT strategy we will adopt the "as a service" model for further technology, subject to these services being fit for purpose and affordable.
Introducing new services
We have already begun introducing new services to:
- reduce the amount of time customers spend on their taxes, and
- provide businesses with greater efficiencies.
New services like filing through accounting software, myIR secure online services and voice recognition are just the beginning.
What the future will look like
Customers interact with us for personal and business taxes and for transactions relating to child support, student loans, KiwiSaver, Paid Parental Leave and Working for Families Tax Credits.
Over the next few years we'll be making continuous improvements to make it faster and simpler for our customers and third parties to interact with us. Here is what the future will look like.
Individuals and businesses
- Most people will interact through simple and secure services using digital devices and spend significantly less time dealing with us.
- Customers will experience faster phone and counter services as we digitise our paper processes and offer more self-service web and mobile services.
- Details of employment income, taxes and entitlements will be fully digital and accessed through self-service web and mobile applications.
- People will be able to digitally inform Government once about changes to personal information and those details will be securely shared across all of Government.
Businesses and third parties (banks, tax agents, accountants, software providers)
- GST and PAYE payments will be built into payroll and accounting software, reducing time and effort.
- Tax compliance costs will be greatly reduced; in particular, for small and medium businesses.
- Simplified calculations will be provided for provisional tax, based on real time information and payment options that better reflect taxpayers' cash flows.
- A new single gateway will speed up and improve the quality and exchange of transactional data between ourselves and business.
Getting it right
Modernising New Zealand's tax service is a significant government investment. We're closely following similar complex business transformations, both in New Zealand and overseas, to learn from their successes and failures.
We're making absolutely sure we get it right with robust planning, programme management and a staged roll-out. While we plan long-term system change, we must keep our current systems operating to keep New Zealand's economy running.
A series of independent reviews have reported positively on the transformation programme and stated that we are well placed to succeed.
Contact us at IRtransformation@ird.govt.nz.