Statement of departmental budgeted and actual expenses and capital expenditure incurred against appropriations

For the year ended 30 June 2021

Actual 2020
($000)

Actual¹ 2021
($000)

Unaudited revised budget 2021⁵
($000)

Unaudited budget 2021
($000)

Unaudited forecast 2022
($000)

Vote: Revenue

Output expenses

$10,300

Policy Advice

$11,173

$11,506

$10,306

$11,500

Services for Customers—MCA

$288,987

Services to Ministers and to inform the public about entitlements and meeting obligations

$240,565

$242,209

$224,410

$233,419

$154,327

Services to Process Obligations and Entitlements

$126,192

$128,913

$139,546

$138,494

$87,731

Management of Debt and Unfiled Returns

$90,093

$91,163

$82,620

$83,634

$109,720

Investigations

$124,325

$124,090

$112,201

$114,238

$651,065

Total departmental output expenses

$592,348

$597,881

$569,083

$581,285

$5,506

Services to Other Agencies RDA²

$4,816

$5,341

$3,942

$1,174

$656,571

Total output expenses

$597,164

$603,222

$573,025

$582,459

Other expenses

$166,764

Transformation³

$128,630

$130,000

$326,464

$316,752

$166,764

Total other expenses

$128,630

$130,000

$326,464

$316,752

$823,335

Total expenses

$725,794

$733,222

$899,489

$899,211

Capital Expenditure PLA⁴

$6,257

Property, plant and equipment

$3,439

$6,659

$9,000

$13,000

$97,556

Intangible assets

$61,534

$82,595

$204,112

$149,560

$103,813

Total Capital Expenditure PLA

$64,973

$89,254

$213,112

$162,560

¹ Excludes remeasurement of $213,000 (2019-20: $1,440,000). The remeasurement consists of macroeconomic changes in the actuarial valuations of retiring and long-service leave and foreign exchange losses, mainly on forward foreign exchange contracts.

² Revenue-dependent appropriation (RDA). The amount of an RDA is limited to the amount of revenue earned.

³ Part of the 2020-21 Transformation depreciation and capital charge funding has been moved to the Services for Customers multi-category appropriation to reflect assets delivered between 1 July 2019 and 30 June 2021. Also, a portion of transformation funding has been re-phased into 2021-22 to better align with the updated transformation work plan and move contingency funding into the final year of the transformation programme.

⁴ PLA refers to appropriations established under a permanent legislative authority.

⁵ The revised budget figures for 2020-21 are those included in The Supplementary Estimates of Appropriations for the Government of New Zealand for the year ending 30 June 2021, published 20 May 2021.

The budget and forecast figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted in preparing the departmental financial statements.

Explanations of significant variances against budget are detailed in the relevant notes of the departmental financial statements.

2020-21 performance information for each appropriation administered by Inland Revenue has been reported in the Our performance section.