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: Te Tai Ōhanga, the Treasury; Hīkina Whakatutuki, the Ministry of Business, Innovation and Employment; Te Manatū Whakahiato Ora, the Ministry of Social Development; Te Kaporeihana Āwhina Hunga Whara, Accident Compensation Corporation; Te Arawhiti, the Office for Māori Crown Relations; Callaghan Innovation; Manatū Ahu Matua, the Ministry for Primary Industries; and Manatū Mō Te Taiao, the Ministry for the Environmen. When possible, we use the Generic Tax Policy Process (GTPP) 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 implement the Government’s Tax and Social Policy Work Programme (TSPWP), 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
Every year the Minister of Revenue introduces a taxation bill that proposes tax policy and remedial changes and sets the annual tax rates. This year, the Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Act enacted in March 2023 contained 190 changes across 5 broad areas of change: the platform economy, cross-border workers, GST, property and international tax. Read more about our delivery of these changes here.
Tracking the outcomes of the transformation programme
This year, work continued on Government priority areas including Cost of Living Payments, the child support pass-on, the Debt to Government Project, tax principles legislation and high-wealth individuals research.
This Cost of Living (COL) payment announced as part of Budget 2022 was designed to help eligible people with the recent increases in the cost of living. It required a quick and simple process in time for the first payment on 1 August 2022. Read more about the quick delivery of COL on page here.
For the first time - a cost of living payment
The Child Support (Pass On) Acts Amendment Act 2023 was granted Royal assent on 12 June 2023. The child support pass-on initiative will see child support passed on to sole-parent beneficiaries from 1 July 2023, rather than retained by the Crown to offset benefit costs.
We are working with: Te Manatū Whakahiato Ora, the Ministry of Social Development; Te Tari o te Pirimia me te Komiti Matua, the Department of the Prime Minister and Cabinet; Te Tāhū o te Ture, the Ministry of Justice; Kāinga Ora, Homes and Communities; and Te Tūāpapa Kura Kāinga, the Ministry of Housing and Urban Development on the Debt to Government Project. Final recommendations were due to Cabinet in July 2023. Read more about this project here.
Payments that families relied on
The Taxation Principles Reporting Bill was prepared this year and introduced on 18 May 2023. The Bill sets out a list of key design principles for a tax system that the department will use to determine various measures to regularly report on New Zealand’s tax system.
The high wealth individuals research project report was published in April 2023. The statistical research project sought to measure the effective tax rates of a cohort of high wealth families.
Our other deliverables focused on our stewardship function. The regulatory review of fringe benefit tax was released and, consistent with our obligations under the Public Service Act, the long-term insights briefing was reported back to Parliament by the Finance and Expenditure Committee. We continue to work with Te Tai Ōhanga the Treasury to incorporate other agency feedback on the Officials’ Framework for Environmental and Resource Pricing.
We include Māori perspectives into the design of policy and services to ensure that Te Tari Taake Inland Revenue 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 to provide advice on Māori engagement methods.
Read more about the Generic Tax Policy Process, the Tax and Social Policy Work Programme and our public consultations on our website:
How we performed
An independent panel assessed the quality of the policy advice papers we wrote for Ministers this year. They found that 70% of the advice provided met or exceeded a score of 3.5 out of 5, a material improvement from 60% in 2021-22.
Performance measure results
This year, we achieved both performance measures in the Policy Advice category in the Services for Customers multi-category appropriation, the same as in 2021–22.
| 2021–22 actual | Output performance measure | 2022–23 target | 2022–23 actual | 2023–24 target |
|---|---|---|---|---|
| 3.5 | Average score of papers assessed using the Policy Quality Framework | 3.5 or more out of 5 | 3.6 (achieved) | 3.5 or more out of 5 |
Scale for scoring the quality of policy advice:
|
||||
| 5.01 | The Minister's satisfaction with the policy advice services received | 4 or more out of 5 | 4.9 (achieved) | 4 or more out of 5 |
1 Result based on a response from the Associate Minister of Revenue.
All targets are unaudited.
What it cost
| Actual 2022 ($000) 2 | Actual 2023 ($000) | Unaudited revised budget 2023 ($000) | Unaudited budget 2023 ($000) | Unaudited forecast 2024 ($000) | |
|---|---|---|---|---|---|
| Revenue | |||||
| - | Revenue from the Crown | $16,630 | $16,630 | $15,979 | $13,399 |
| - | Other revenue | - | $1 | $1 | $1 |
| - | Total revenue | $16,630 | $16,631 | $15,980 | $13,400 |
| - | Total expenses | $14,084 | $16,631 | $15,980 | $13,400 |
| - | Net surplus or (deficit) | $2,546 | - | - | - |
2 The actual results for 2021–22 do not include the new Policy Advice category amount. A comparative may be drawn to the Actual amount of the Policy Advice appropriation that ceased to exist in June 2022 in our 2022 Annual Report.