Changes to measures and targets

We review our performance measures and targets each year. We do this to make sure they continue to be relevant, reflect the range of services we provide and changes in the environment we work in, and support the achievement of our outcomes. 

We also apply the standard PBE FRS 48 for Service Performance Reporting with its principles-based requirements to ensure service performance information and reporting is appropriate and meaningful to users. This includes the following considerations:

• maintaining consistency of reporting, and
• performance information is comparable, relevant, reliable, neutral, understandable and complete. 

Changes to our services measures for 2022–23

Services for Customers multicategory appropriation (MCA)

Our Customer Experience and Perceptions (CXP) Survey has replaced our legacy survey. The CXP survey is designed to keep up with the changes in how customers interact with us. 

• We have retired 2 output measures that relied on the legacy survey, and 2 equivalent measures from the CXP Survey will be tracked as outcome indicators. The retired output measures were:
  
  • Percentage of customers satisfied with the overall quality of service delivery from Inland Revenue, and
  • Percentage of customers who feel Inland Revenue makes it easy for people to get it right.
• The following 2 measures encapsulate our overall performance in delivering services for customers and will be used for the overarching Services for Customers MCA:
  • Percentage of returns filed on time, and
  • Percentage of payments made by customers on time.
• We have increased the targets for these measures from 85% to 90% to reflect the efficiencies we’ve gained through the transformation programme.

Services for Customers multicategory appropriation: Services to Ministers and to Inform the Public About Entitlements and Meeting Obligations category

Our Customer Experience and Perceptions (CXP) Survey has replaced our legacy survey and is designed to keep up with the changes in how customers interact with us. 

• We have retired 2 measures that relied on the legacy survey:
  • Percentage of customers who perceive that Inland Revenue does enough to inform them of their rights and obligations, and
  • Percentage of customers who perceive that resolving issues with Inland Revenue requires low effort.
• The retired measures have been replaced by a measure from the CXP Survey:
  
  • Percentage of customers who agree they found it easy to get the information they needed.
• We set a 70% target for this measure. In line with industry standards, we will not include neutral responses (customers who respond neither negatively nor positively) towards the achievement of this target.
• The ‘percentage of returns filed digitally’ measure was an important indicator during our transformation programme to modernise and digitise New Zealand's tax system. Over the past year, we achieved the target and have reached the limit to influence any further performance increase. Therefore, we have retired this measure. We will continue to monitor and report on the trend for filing returns digitally as an outcome indicator.
• We use several output measures to measure our tax advice. We have retired 1 volume-based measure ‘number of published or finalised public items that give the Commissioner’s interpretation of the law’, as it does not convey meaningful information to an external audience. 

Services for Customers MCA: Services to Process Obligations and Entitlements category

• The target for the measure ‘average cost of processing income tax returns, GST returns and employment information’ has been stretched from $3.50 or less to $2.50 or less to reflect the service delivery cost efficiencies realised through our transformation programme.

Services for Customers MCA: Management of Debt and Unfiled Returns category

• The measure ‘percentage of student loan customers that meet their obligations’ was introduced in 2021–22. A target of 85% has been set for 2022–23. The target takes into account New Zealand-based borrowers' compliance and overseas-based borrowers' compliance.

Services for Customers MCA: Investigations category

• • A new measure ‘the identified value of compliance activities over associated costs’ was introduced in 2022–23, replacing the audit-based measure ‘discrepancy identified for every output dollar spent’. This better reflects our approach, facilitating compliance through more upfront and real-time interventions and helping customers get tax obligations right from the start. The measure includes voluntary disclosures, real-time integrity reviews including COVID-19 product applications, and continued enforcement action where required. The measure is baselined in 2022–23.
• We updated the target from 75% to 65% for the measure ‘percentage of audited customers who are satisfied with their experience’. In line with industry standards, we will not include neutral responses (customers respond neither negatively nor positively) towards the achievement of this target. The target has been adjusted to reflect this higher bar.