Policy Advice

This category is limited to the provision of advice, including second opinion advice and contributions to policy advice led by other agencies, to support decision making by Ministers on government policy matters.

What we do

We provide advice to Ministers on tax and social policy matters to help them make policy decisions. Our advice aims to protect and maintain the integrity of the tax system, keep the tax and social policy system as simple and coherent as possible and ensure we stay internationally competitive.

We work on policy initiatives alongside other agencies, including the Treasury, MBIE, MSD, Accident Compensation Corporation, the Office for Māori Crown Relations Te Arawhiti, Callaghan Innovation, the Ministry for Primary Industries Manatū Ahu Matua; the Ministry of Education and the Ministry for the Environment Manatū Mō Te Taiao.

When possible, we use the Generic Tax Policy Process to develop better, more effective tax policies by considering key elements and trade-offs at an early stage. There are opportunities for the public to comment on proposed policies at several points during the process.

We include Māori perspectives into the design of policy and services to ensure that IR is being more responsive to Māori perspectives and needs. We use the Tax and Social Policy Māori Advisory Panel to advise on tax and social policy implications from a Māori perspective and provide advice on Māori engagement methods.

We implement the Government’s Tax and Social Policy Work Programme, which is based on the Government’s revenue and economic strategies.

Our role includes:

• advising on tax and social policy measures 
• developing tax and social policies 
• drafting tax legislation and helping to get it passed
• negotiating and maintaining double tax agreements with other countries
• forecasting Government revenue and analysing the revenue implications of policy change
• including Māori perspectives into the design of policy and services.

Our main policy achievements this year

This page provides information on our work for the mini-Budget, The Taxation (Annual Rates for 2023/24, Multinational Tax, and Remedial Matters) Bill, and Budget 2024.  

Stewardship

A stewardship regulatory review of the donation tax credit regime began in mid-2023. The review tests whether the regime is operating efficiently and effectively, is achieving the intended outcomes and remains fit for purpose. The review takes an end-to-end view of the regime from policy, administration and system design, through to customer (donors/donees) behaviour and compliance.

The review has included a survey of individuals that do and do not donate, interviews with donors and donee organisations and meetings with professional advisors and representatives of the not-for-profit sector. A report setting out findings and recommendations expected to be published in mid to late 2024.

Other

IR supported the Minister of Revenue in repealing the Taxation Principles Reporting Act 2023, providing policy advice on options for either amending or repealing the Act. The repeal Bill was introduced on 19 December 2023 under urgency and received its third reading the same day. The Bill received Royal assent on 22 December 2023.  

How we performed

An independent panel assessed the quality of the policy advice papers we wrote for Ministers this year. They found that 88% of the advice we provided met or exceeded a score of 3.5 out of 5, a material improvement from 70% in 2022–23. 

Performance measure results

This year, we achieved both performance measure targets, the same as in 2021–22. 

¹ Result based on a response from the Associate Minister of Revenue.

All targets are unaudited.

What it cost