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.
What we do
We deliver efficient and effective registration, assessment and processing of tax obligations and entitlements. This contributes to the availability of revenue to fund government programmes as well as ensuring that customers receive payments they’re entitled to.
How we performed
Our processing performance measures have a focus on timeliness and efficiency for the key services and activities that affect customers. Our systems and more automated processes have made us more efficient. Over the last 5 years we have seen positive results for our key efficiency measure. The average cost to process returns has reduced from $2.92 in 2019 to $1.48 in 2023.
| Year | Average cost of processing income tax returns, GST returns and employment information |
|---|---|
| 2019 | $2.92 |
| 2020 | $2.78 |
| 2021 | $1.86 |
| 2022 | $1.35 |
| 2023 | $1.48 |
Performance measure results
This year, we achieved 10 out of 11 measures for the Services to Process Obligations and Entitlements category in the Services for Customers multi-category appropriation. This is an increase on 2021–22 when we achieved 8 out of 11 measures.
| 2021-22 actual | Performance measure | 2022-23 target | 2022-23 actual | 2023-24 target |
|---|---|---|---|---|
| 87.9%1 | Percentage of social policy and tax registrations processed within 5 working days | 85% | 85.0% (achieved) | 85% |
| 84.4% | Percentage of income tax refund disbursements resulting from a return issued within 5 weeks | 85% | 87.0% (achieved) | 85% |
| 96.4% | Percentage of GST refund disbursements issued within 4 weeks2 | 95% | 96.6% (achieved) | 95% |
| 98.7% | Percentage of income tax returns finalised within 3 weeks | 95% | 99.5% (achieved) | 95% |
| 100% | Percentage of GST returns finalised within 3 weeks | 98% | 100% (achieved) | 98% |
| $1.35 | Average cost of processing income tax returns, GST returns and employment information | $2.50 or less | $1.48 (achieved) | $1.75 or less (see below) |
| This measure demonstrates the cost-effectiveness of our processing activities. We continue to see more returns filed digitally (99.0% in 2022–23), which is more efficient for us to process. Most returns filed digitally need no intervention from us. In 2023–24, we will use a target of $1.75 or less to measure our performance. | ||||
| 68.7% | Percentage of donation tax credit claims processed within 3 weeks | 70% | 73.2% (achieved) |
Measure retired see page below3 |
| 99.8% | Percentage of Working for Families Tax Credit payments made on the first regular payment date following an application | 95% | 99.8% (achieved) |
Measure retired see page below3 |
| 99.8% | Percentage of paid parental leave payments issued to customers on the first pay day following the agreed date of entitlement | 97% | 99.98% (achieved) |
Measure retired see page below3 |
| 49.0% | Percentage of child support administrative review decisions issued within 7 weeks | 90% | 79.2% (not achieved) |
Measure retired see page below3 |
| Not achieved—While we achieved the 90% target in 8 of the 12 months of 2022–23, we headed into the year with a backlog of older cases from 2021–22. The backlog was the result of the shutdown of our systems in October 2021 for business transformation changes and COVID-19 lockdowns in Tāmaki Makaurau Auckland where the work is carried out. We also saw a 19% increase in applications in 2022–23 compared to the previous year. This measure is retired from 2023¬24. | ||||
| 84.7% | Percentage of child support assessments issued within 2 weeks | 80% | 81.1% (achieved) | 80% |
All targets are unaudited.
1 Result reported in the 2022 Annual Report was incorrectly reported as 89.8%.
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.
3 Changes to measures and targets
What it cost
| Actual 2022 ($000) | Actual 2023 ($000) | Unaudited revised budget 2023 ($000) | Unaudited budget 2023 ($000) | Unaudited forecast 2024 ($000) | |
|---|---|---|---|---|---|
| Revenue | |||||
| $107,820 | Revenue from the Crown | $146,613 | $146,613 | $156,915 | $162,084 |
| $14,184 | Other revenue | $3,597 | $3,634 | $14,234 | $3,634 |
| $122,004 | Total revenue | $150,210 | $150,247 | $171,149 | $165,718 |
| $114,147 | Total expenses | $140,286 | $150,247 | $171,149 | $165,718 |
| $7,857 | Net surplus or (deficit) | $9,924 | - | - | - |