Automatically calculating and sending end-of year income tax assessments to individuals is the biggest process we run each year. Since we began doing these assessments in 2019, we have paid out $2.6 billion in refunds to customers, and issued $480 million in bills for tax to pay. (Figures are provisional because some customers have until 31 March 2023 to amend their 2022 assessments.)
This year, we got assessments out to customers faster than ever by issuing 2 million assessments over the last weekend in May and the first weekend in June. We prioritised families customers first so any refunds reached them quickly.
Each year, our team have been improving the process. For 2022, we worked to ensure a smoother online self-service experience for customers using myIR. We also included income from the Wage Subsidy Scheme in people's assessments, and from Māori authority distributions and other sources. This reduced the number of customers who needed to call us or take any action before their returns were finalised.
Because we get employment and investment income information more regularly and can better analyse it, we can see where things are not right much more quickly. We worked with customers during the year to make sure they were making and receiving the right payments, rather than waiting until the end of the year.
As at 30 June 2022:
- 2.6 million taxpayers received this year's assessment and did not have to do anything
- $602 million was refunded to 1.65 million customers
- 84% of the refund amount went to people earning less than $70,000
- 235,000 customers had a bill to pay before 7 February 2023.
"My husband and I were due refunds and I was expecting to wait about a month to have that paid into our bank account. I was extremely surprised and delighted when it appeared in our bank account within a few days." - Inland Revenue customer