IR defines customer motivation as the factors that make people willing to comply and follow through with an action.
New Zealand’s tax and social policy system is based on customers voluntarily making the payments they should and claiming only what they’re entitled to. For this system to work, it is critical that the public trusts us.
Customer trust and tax morale
Trend indicator: improved
New Zealand’s tax system is based on the voluntary compliance of individuals and businesses, so public trust in the integrity of the system is critical to its success. Research has demonstrated that better long-term compliance outcomes can be achieved by increasing tax morale. Not all the factors that influence trust and tax morale are within our control. Based on the factors we can influence, we measure 3 beliefs that reflect the views we aim to create among customers:
- When I pay my tax, I’m doing a good thing
- When I’m trying to do the right thing, IR will help me.
| Statement | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Have trust in us | 68% | 64% | 60% | 57% | 61% |
| Feel good about paying tax | 64% | 63% | 58% | 58% | 60% |
| IR helps people who are trying to get things right | 69% | 64% | 61% | 60% | 65% |
| If someone tries to avoid paying the right amount, they will get into trouble withIR | 85% | 81% | 79% | 79% | 80% |
We measure our customers trust in us and their tax morale through our Customer Experience and Perceptions Survey. This survey asks customers to rate their responses on a 7-point scale. Results reflect ratings of 5 or more. More information on the survey is provided here:
Trust in IR has started to recover following declines over the previous 3 years. In line with this improvement, tax morale also increased with significantly more customers agreeing we help those who are trying to get things right.
Fairness is the main theme customers mention when describing why they perceive IR as trustworthy. The aspects to fairness that help build trust are ensuring everyone pays their share, treating customers fairly and equitably and acting lawfully. We have been building momentum from the rebalancing of our enforcement work following a period where our approach was more heavily focused on supporting customers affected by COVID-19 and economic circumstances.
We also know that our customers’ direct experiences with us are a key driver of trust, and 2024 has seen some improvements in our call responsiveness. Continuing to focus on reducing effort for customers, addressing product-specific pain points, enhancing online services and improving communication are all areas we are focused on to further improve customer experience.