This category is limited to the registration, assessment and processing of tax obligations and other entitlements, including associated review and Crown accounting activities, and the collection and sharing of related information with other agencies.
We deliver efficient and effective registration, assessment and processing of tax obligations and other entitlements. This contributes to the availability of revenue to fund government programmes as well as ensuring that taxpayers and other customers receive payments they're entitled to.
Our new systems and more automated processes have made us more efficient in several areas relating to our performance measures. However, we did not meet all our targets. This reflects the impact on our services of prioritising COVID-19-related initiatives and supporting customers adversely impacted by the pandemic.
This year, we achieved 8 out of 11 measures for the 'Services to Ministers and process obligations and entitlements' category in the 'Services for customers' appropriation. This was fewer than in 2020-21, when we achieved all 11 measures.
| 2020-21 actual | Performance measure | 2021-22 target | 2021-22 actual | 2022-23 target |
|---|---|---|---|---|
| 85.5% | Percentage of social policy and tax registrations processed within 5 working days | 85% | 89.8% (achieved) | 85% |
| 85.9% | Percentage of income tax disbursements resulting from a return issued within 5 weeks | 85% | 84.4% (not achieved) | 85% |
| Not achieved - While we did not quite make our 85% target, we worked hard to balance this work with our priority to respond to the Government's COVID-19 related initiatives and supporting customers adversely affected by the pandemic. | ||||
| 97.1% | Percentage of GST disbursements issued within 4 weeks[2] | 95% | 96.4% (achieved) | 95% |
| 98.5% | Percentage of income tax returns finalised within 3 weeks | 95% | 98.7% (achieved) | 95% |
| 99.9% | Percentage of GST returns finalised within 3 weeks | 98% | 100% (achieved) | 98% |
| $1.86 | Average cost of processing income tax returns, GST returns and employment information | $3.50 or less | $1.35 (achieved) | $2.50 or less (refer to page xx) |
| This measure demonstrates the cost-effectiveness of our processing activities. We continue to see more returns filed digitally (98.7% in June 2022), which is more efficient for us to process. Most returns filed digitally need no intervention from us. In 2022-23 we will use a higher target - $2.50 or less - to measure our performance. | ||||
| 74.6% | Percentage of donation tax credit claims processed within 3 weeks | 70% | 68.7% (not achieved) | 70% |
| Not achieved - Our timeliness in processing donation tax credit claims was impacted by the lockdown in August 2021 when staff could not process paper-based claims. We also had to balance our COVID-19-related work and other priorities such as the individual income tax assessments. Each year, we receive the highest volumes of claims between April and August. This year, 48% of all claims were submitted in April, May and June 2022. | ||||
| 99.8% | Percentage of Working for Families Tax Credit (WfFTC) payments made on the first regular payment date following an application | 95% | 99.8% (achieved) | 95% |
| 99.2% | Percentage of paid parental leave payments issued to customers on the first pay day following the agreed date of entitlement | 97% | 99.8% (achieved) | 97% |
| 93.0% | Percentage of child support administrative review decisions issued within 7 weeks | 90% | 49.0% (not achieved) | 90% |
| Not achieved - Our ability to complete administrative reviews was impacted by the shutdown of our systems for business transformation in October 2021, COVID-19 lockdowns in Tāmaki Makaurau Auckland where the work is carried out, and a significant increase in volumes since October 2021. We are increasing our capacity to carry out this work. | ||||
| 81.5% | Percentage of child support assessments issued within 2 weeks | 80% | 84.7% (achieved) | 80% |
1 Actual performance measured using a sample of the customer population
2 Section 46 of the Goods and Services Tax Act 1985 stipulates that refunds are to be issued within 15 working days unless selected for screening or investigation. The 4 weeks issuing timeframe allows additional time to include those selected for screening or investigation in our performance.
All targets are unaudited.
| Actual 2021 ($000) | Actual 2022 ($000) | Unaudited revised budget 2022 ($000) | Unaudited budget 2022 ($000) | Unaudited forecast 2023 ($000) | |
|---|---|---|---|---|---|
| Revenue | |||||
| $114,628 | Revenue from the Crown | $107,820 | $125,280[4] | $124,260 | $156,915 |
| $14,182 | Other revenue | $14,184 | $14,234 | $14,234 | $14,234 |
| $128,810 | Total revenue | $122,004 | $139,514 | $138,494 | $171,149 |
| $126,196[3] | Total expenses | $114,147 | $139,514 | $138,494 | $171,149 |
| $2,614[3] | Net surplus or (deficit) | $7,857 | n/a | n/a | n/a |
3 The actual results for 2020-21 have been restated following a change in the Crown accounting policy for software as a service (SaaS) arrangements. Refer to our section on changes in accounting policies in 'Note 1 - Basis of preparation (2022)'.
Note 1 - Basis of preparation (2022)
4 The revenue from the Crown amount under the unaudited revised budget is higher by $17.460 million than actual 2022 because there was a revenue increase to provide appropriation authority for the non-cash restatement of expenses incurred from SaaS in the prior financial year.