Inland Revenue outlines focus after Budget funding boost
Inland Revenue (IR) will intensify its tax compliance and collection efforts following a significant funding boost in Budget 2025, with expectations of strong returns on investment.
The Government had allocated new additional permanent funding of $35 million a year for Inland Revenue and also continued funding of $26.5 million a year from Budget 2022 that was due to run out in June.
'Along with the $29 million per year that was allocated in Budget 24, this is a significant funding boost and is recognition of what we do and the excellent results we've had so far this year,' Inland Revenue commissioner Peter Mersi said.
Mersi said the increased funding meant the majority of taxpayers who met their obligations could continue to be confident IR would find those who were not.
He said IR was expected to return $4 for every dollar invested in the first year and $8 for every dollar from the second year.
ADVERTISEMENT
Cold coming, PM's press secretary scandal, science of sleep (Source: 1News)
"This is in addition to increasing the return from last year's compliance funding boost by $8 from July 1.
'While we do that, IR also must maintain its base level of tax collection and debt reduction."
The increased funding would be invested into new activities, Mersi said.
These would include further increasing audits and debt collection in high risk/value areas, investigations into specific sectors such as property, organised crime, the hidden economy and trusts, as well as the improved use of data and intelligence to speed up the identification and targeting of discrepancies and pursuing debt.
The process of collecting data from third parties such as banks would shift to an automated process from a manual approach, while more targeted compliance activity measures would be investigated.
Additional staff would be hired for this work and systems and technology would be used in more effective ways, Mersi said.
ADVERTISEMENT
Increase investment will 'accelerate returns' - Watts
Revenue Minister Simon Watts. (Source: Q+A/Irra Lee)
On the increased funding in the Budget, Revenue Minister Simon Watts said hard-working Kiwis who paid their taxes were "being ripped off by tax cheats who deliberately evade their obligations".
"New Zealand's tax debt rose to $8.5 billion by the end of 2024. At a time when the Government is carefully managing every dollar to fund the essential frontline services Kiwis rely on, it's essential we crack down on those who are not paying their share of tax."
Watts said the increased investment would accelerate returns already being seen from the compliance funding in last year's Budget.
"In the year to March 2025, Inland Revenue collected almost $3 billion of overdue debt and is on track to collect more than $4 billion by June 30."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
4 hours ago
- NZ Herald
SMEG returns to New World
New World is serving up kitchen style with its latest promotion. This article was prepared by New World and is being published by the New Zealand Herald as advertorial. New World is once again serving up a big dollop of kitchen style with its latest promotion. For the past six years, these eagerly awaited campaigns have been elevating kitchens across the country. This year, New World has once again, partnered with premium brand SMEG to offer a kitchenware collection that combines luxury with everyday functionality. The promotion launches June 9 and runs until August 31, or while stocks last. New World's retail marketing manager Sarah Austin says the SMEG kitchenware range was chosen for its premium quality and useability. As with previous promotions, the range is expected to be hugely popular. 'Our promotions are all about giving customers the chance to add a little bit of wonderful to their weekly shop,' she says. 'We know New Zealanders are familiar with and love the SMEG brand, but treating themselves to quality kitchenware isn't often a priority. This promotion gives New World shoppers the chance to elevate their kitchen space with a touch of luxury and can collect stickers just by doing their usual shop.' The SMEG range is finished in high gloss while the brasier is cast iron, making it ideal for low-and-slow cooking and safe for both the stovetop and oven. The range has been chosen so customers can choose the items they like, without needing to collect the whole set, with one sticker collected for every $20 spent in store and online**. Items can be collected by redeeming between 20 stickers for the utensil rest to 55 stickers for the larger baker. Shoppers can also use a combination of stickers and cash to collect items. The cast iron braiser is a Clubcard exclusive and only available with 45 stickers and a cash top-up. Value is top of mind this year and New World's fresh and improved Clubcard programme offers a truly rewarding shopping experience with our own New World Dollars – a currency that turns everyday shopping into real value. With no minimum spend, customers earn every time they shop and can redeem New World Dollars like cash in-store or online. Combined with exclusive Clubcard deals, prize opportunities, and exciting campaigns like SMEG, it's easier than ever for Kiwis to get more from their grocery shop – all backed by our enhanced app for a seamless, personalised experience and rewards for every dollar you spend. Throughout the SMEG promotion New World teams across Aotearoa will be helping customers to keep track of what stock is available and what's running out. 'We anticipate the promotion is going to be super popular, and it's important to remember it's only while stocks last,' says Sarah. 'Some items will be more sought after than others, so customers should redeem their stickers as soon as they have enough for their chosen pieces, or they may lose out.' You can keep an eye on your local New World's Facebook page for updates on stock availability and take note of the in-store signage about what's available and what might be running low. As we always say, if you really want a particular item, don't sit on your stickers, they are strictly while stocks last.
RNZ News
5 hours ago
- RNZ News
The House: Parliamentary week achieves two out of three goals
Still, two out of three isn't bad. Photo: 123RF While Parliament's week was dominated by its final event - Thursday's debate on the report from the Privileges Committee into a haka performed in the chamber - the rest of the week focussed on other business that, while more mundane, was still worthy of note. The Government appeared to have three objectives for this week in the house. Crucial to the administration's continuance, the first goal was to successfully complete the initial debate on the budget. The long initial budget debate could no longer dribble on over weeks, so the house spent six hours of the week completing the second reading debate, which is the first debate a budget gets. The reading was accomplished and so the Government continues. This may sound silly, but a Government cannot survive, if the house votes against its budget. Agreeing to vote for budget and taxation bills are the 'supply' portion of the 'confidence and supply' agreement that is the foundation of any coalition agreement. The budget focus now turns to select committees and what is called 'Scrutiny Week', when ministers appear before various subject committees to defend their budget plans. Scrutiny Week begins on 16 June. A second objective was possibly not in earlier plans for this week - to finally polish off the bills originally slated for completion two weeks ago during budget week urgency. Then, the Leader of the House had asked the house to accord urgency for 12 bills the Government hoped to progress through 30 stages of parliamentary debate. The plan was ambitious and it did not succeed. Despite day-long sittings until midnight Saturday (when urgency must end), only two bills were completed, others were untouched, and 13 stages were unfinished or unstarted. This week's plan for the house had MPs returning to the well for more of the same. Just like last time, progress was at a snail's pace. After quite a few hours, the Government had slugged its way through just a few more stages. The plan was slowed to a crawl by bills' committee stages (formally known as the Committee of the Whole House). Committee stages are a crucial way for MPs to publicly interrogate the minister in charge of a bill. With patience, they can tease out a lot about both a government's development of legislation and its intended real-world impacts. Te Pāti Māori co-leader Rawiri Waititi moved the vote on his own punishment. Photo: RNZ/Mark Papalii Because the committee stage has no set duration, it is also a way for the opposition to make the Government really work for progress. The Government did achieve progress on the bills left incomplete from budget week, but again, it was probably not what was hoped for. They will need to come back yet again in three weeks to have a third crack. The Opposition is showing itself to be quite effective at the filibuster. The Government's third objective was to have the debate on the recent Privileges Committee Report on three Te Pāti Māori MPs done by the week's end. As Leader of the House Chris Bishop said in re-initiating the debate: "My encouragement would be for everybody to finish this debate today. "Have a robust debate, but let's end this issue once and for all, and deal with the issue and get back to the major issues facing this country." That wish was fulfilled with apparent agreement from across the house. As 6pm neared, the MP who eventually moved that a vote be taken was Te Pāti Māori co-leader Rawiri Waititi. The frankly fascinating debate on the report will be reported separately. - RNZ's The House, with insights into Parliament, legislation and issues, is made with funding from Parliament's Office of the Clerk. Enjoy our articles or podcast at RNZ. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
8 hours ago
- Scoop
Cambridge Is Open For Business With $45M Energy Boost
Press Release – Waipa Networks With Waip's population set to grow to around 75,000 over the next 25 years and another 13,200 homes to be built in and around the area, Waip Networks new substation will significantly enhance resilience and future capacity to support our rapidly … This morning, Waipā Networks cut the ribbon on its newly commissioned 33kV zone substation alongside Transpower's Grid Exit Point (GXP) – a combined investment of over $45 million. With Waipā's population set to grow to around 75,000 over the next 25 years and another 13,200 homes to be built in and around the area, Waipā Networks' new substation will significantly enhance resilience and future capacity to support our rapidly growing district. Over 200 attendees gathered in Hautapu to mark the commissioning of the two projects, with the event opening with a karakia and the gifting of a special taonga by Ngāti Korokī-Kahukura and Ngāti Hauā mana whenua. Waipā Networks Chief Executive Sean Horgan acknowledged everyone involved, including key partners, Transpower, and his team, for their mahi. He described the completion of this major infrastructure project as a landmark achievement and a first for Waipā Networks. 'This milestone represents a solid step forward for our business and the district's energy future, supporting our growing business community by enhancing our ability to connect large new electricity loads to the network. 'It's more than a technical achievement – it's a declaration of intent. It strengthens our network, enables growth within Waipā, and lays the foundation for a low-carbon, electrified future.' Horgan noted the timing was especially meaningful as the company celebrates over a century of service to the Waipā district and its communities. 'We are 100% owned by our customers, and it is an honour to look back at 100 years of service, while at the same time looking ahead to the future. Our mission remains the same: to deliver safe, reliable, and affordable electricity and to do it in a way that unlocks opportunities for our community. Located in one of Waikato's fastest-growing industrial zones, the new substation is designed to power the future, enabling electrified transport, low-carbon agriculture, regional manufacturing, and greater integration of solar, battery, and smart grid technologies. 'This is modern infrastructure, designed for a modern district that's ready for growth.' Transpower Executive General Manager Grid Delivery Mark Ryall says that Waipa is just one of many regions where demand for electricity is rapidly growing. 'Across the motu, we expect demand to grow around 70% by 2050 as Kiwis increasingly electrify the way we live and work. Transpower has a key enabling role for this energy transition as the owner and operator of our electricity transmission grid, working with our electricity sector partners across Aotearoa to deliver the reliable power system that our communities need to thrive and prosper.' Transpower has completed 20 customer projects to connect new demand or relocate existing assets to make way for development over the last 18 months, not including new generation. During the same time, a further 15 projects have progressed to delivery, which involves detailed design or construction, and 23 have entered the investigation stage. 'These projects mean our local lines company partners like Waipā Networks can provide more power to their communities and big industrial users can electrify their operations. The future is bright, renewable and affordable, but getting there will require a heap of investment from Transpower and our partners across the industry. That's an investment in our prosperity and energy security, and the hard mahi is well underway.' Waipā is growing faster than ever before, and so is the need for a reliable and resilient electricity network. Waipā Mayor Susan O'Regan said it was a significant milestone not just for Cambridge, but for the entire Waipā district. 'It's more than the completion of a critical infrastructure project, it's a powerful symbol of growth, progress and foresight, and represents confidence in our district's future,' she said. 'We're building real communities – connected, thriving places where people can live and raise families, and where businesses can grow and succeed. Energy is a critical part and enabler of this.' As the district steps into a new age of electricity, Horgan said the new substation is only the beginning. 'We're also defining the design of our future network architecture for Te Awamutu and Kihikihi, harnessing new technology to provide practical and reliable solutions for our customers,' he adds. 'It's about delivering for all of our communities; past, present, and future'.
