The overarching purpose of this appropriation is to deliver a customer-centric, integrated tax and entitlement service experience for New Zealanders that is agile and intelligence-led.
28/35 targets achieved.
Services for Customers is a multi-category appropriation with 5 categories:
- Services to Ministers and to Inform the Public about Entitlements and Meeting Obligations
- Services to Process Obligations and Entitlements
- Management of Debt and Unfiled Returns
- Investigations
- Policy Advice.
What we intend to achieve
This appropriation is intended to ensure customers find it easy to meet their tax and social policy obligations and receive the payments they’re entitled to.
We start this section with our overall results for this appropriation and present the results for each of the 5 categories:
Services to Ministers and to Inform the Public About Entitlements and Meeting Obligations
Services to process obligations and entitlements
Management of debt and unfiled returns
How we performed
This year, we focused on supporting customers who were adversely affected by the weather events and economic conditions while ensuring we upheld the integrity of the tax and social policy system. We had to make some tough trade-off decisions, reducing some non-automated compliance activities while keeping a focus on high-risk compliance areas.
Most customers want to do the right thing. This is reflected in the high proportion of customers who file returns on time, with levels increasing to 96.2% in 2022–23. However, the recent weather events and the economic climate have impacted customers’ ability to pay in full and on-time. Although levels are still relatively high, there was a small decrease to 88.8%.
| Year | Returns filed by customers on time | Tax payments made by customers on time |
|---|---|---|
| 2017 | 85.0% | 87.9% |
| 2018 | 85.4% | 87.9% |
| 2019 | 85.2% | 86.8% |
| 2020 | 93.2% | 85.9% |
| 2021 | 94.3% | 89.9% |
| 2022 | 95.7% | 89.4% |
| 2023 | 96.2% | 88.8% |
Performance measure results
This year, we achieved 1 out of 2 of the overarching performance measures in the Services for Customers appropriation.
| Performance measures | 2021-2022 Actual | 2022-2023 Target | 2022-2023 Actual | 2023-2024 Target |
|---|---|---|---|---|
| Percentage of returns filed by customers on time | 95.7% | 90% | 96.2% (achieved) | 95%1 |
| Percentage of tax payments made by customers on time | 89.4% | 90% | 88.8% (not achieved) | 90% |
1 Changes to measures and targets
Not achieved - This measure reflects compliance levels for customers paying their tax obligations in full and on time. Recent weather events and the current economic climate is impacting on customers’ ability to pay in full and on time. On-time payment compliance declined across all tax types: GST, income tax and employment activities, with each making up around one-third of total payments. Employment activities consistently achieves above 90%, while income tax payment timeliness levels are the lowest, contributing to 41% of all late payments.
We increased the targets for both on-time measures from 85% in 2021-22, to 90%.
All targets are unaudited.
What it cost
For the year ended 30 June 2023
| Revenue | Actual 2022 $0002 | Actual 2023 $000 | Unaudited revised budget 2023 $000 | Unaudited budget 2023 $000 | Unaudited forecast 2024 $000 |
|---|---|---|---|---|---|
| Revenue from the Crown | $588,645 | $693,930 | $693,930 | $705,156 | $715,117 |
| Other revenue | $16,292 | $5,381 | $6,101 | $16,701 | $6,101 |
| Total revenue | $604,937 | $699,311 | $700,031 | $721,857 | $721,218 |
| Total expenses | $573,364 | $660,493 | $700,031 | $721,857 |
$721,218 |
| Net surplus/(deficit) | $31,573 | $38,818 | - | - | - |
2The actual results for 2021–22 do not include the new Policy Advice category amount. A comparative may be drawn to the Actual amount of the Policy Advice appropriation that ceased to exist in June 2022 in our 2022 Annual Report.
We came within budget for the Services for Customers multi-category appropriation.
Since 1 July 2022 onwards, there were 5 categories within the appropriation, with the inclusion of the Policy Advice category.
Services to Ministers and to Inform the Public About Entitlements and Meeting Obligations
Services to Process Obligations and Entitlements