We use several indicators to measure the outcomes of the transformation programme investment as detailed below. Read more about previous years’ results in 'Business Transformation: Implementing a Digital Revenue System—Final Programme Business Case Addendum'.
FINAL Programme Business Case Addendum 2021–22
This year, we achieved 7 out of the 10 indicators for which there are quantitative measures. The measures achieved relate to digital uptake, system availability, system resilience, additional Crown revenue and administrative savings.
The measures not achieved were:
- The 'percentage of customers who find it easy to comply' remained steady at 82% in 2022–23. This measure is proving difficult to shift as it measures customer perceptions of their experience with us. These perceptions are influenced by a number of factors; including the challenges from the adverse weather events and economic environment.
- Results from our 2021 survey of small-to-medium-sized enterprises (SMEs) show the target reduction in compliance effort was not achieved. SMEs reported saving 5 hours compared to a target of 17 hours. The value of the time saved by SMEs was also behind target. It appears that COVID-19 and payday filing had an impact. We continue to focus on designing our services to reduce effort for SMEs. Note: We delayed our survey planned for 2023 to reduce the burden on businesses as they were managing the impact of the adverse weather events. The survey will be run again in 2024.
We recognise that achieving targets in these areas by 2023–24 will be challenging.
The transformation programme closed on 30 June 2022, but we will continue to track and report against its benefit commitments until 2023–24.
Transformation programme outcome indicators
| Indicator | 2021–22 | 2022–23 target | 2022–23 actual | 2023–24 target |
|---|---|---|---|---|
| Easier for customers | ||||
| Digital uptake by customers | 99% | 82% | 99% (achieved) | 85% |
| Customers who find it easy to comply | 81% | 90% | 82%1 (not achieved) | 90% |
| Reduction in compliance time for SME customers | 5 hours2 indicative | 17 hours | 5 hours indicative2 (not achieved) | 18 hours |
| System availability for customer facing e-channels | 99.6% | 99.5% | 99.9% (achieved) | 99.5% |
| Customer outcomes from information sharing and security of information | Read the case study here. | |||
| Cumulative reduction in compliance costs for SME customers | $790 million | $1,070 million | $925 million indicative (not achieved) | $1,330 million |
| Cumulative additional Crown revenue to the Government | Target achieved3 | $1,860 million | Target achieved 3 | $2,880 million |
| Reduce time and cost to implement policy | ||||
| Reduction in the time and cost to implement policy | Read a case study on the delivery of annual changes below. | |||
| Increased revenue system resilience as assessed by Te Tari Taake Inland revenue | High | High | High (achieved) | High |
| Inland Revenue is more efficient | ||||
| Digital uptake by customers | 99% | 82% | 99% (achieved) | 85% |
| Annual reduction in our administration costs | $105 million | $100 million | $110 million (achieved) | $100 million |
| Cumulative reduction in our administration costs | $309 million | $395 million | $419 million (achieved) | $495 million |
1 Results for this indicator up to 30 June 2022 were derived from our Customer Satisfaction and Perceptions Survey. This Survey has been replaced by the Customer Experience and Perceptions survey and comparable methodologies have been applied to provide results for 2022-23.
2 Te Tari Taake Inland Revenue will run the SME compliance cost survey again in 2024. The 2020–21 survey has been used as an indicative result.
3 Achievement of additional Crown revenue is measured through case studies and proxy measures, given the difficulty of direct attribution.
Reduction in the time and cost to implement policy
Each year, as part of our April 2023 changes, we work on a range of enhancements, policy and remedial changes. Prior to the introduction of our core tax technology system START, the focus was primarily on delivering cyclic changes—our yearly reviews and updates. This includes updating ACC, minimum family tax credit and paid parental leave rates and updating and publishing our student loan repayment thresholds. We also update all relevant calculators and materials for these rate changes.
Other legislative changes included in the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 were changes to GST, property rules, our international regime, fringe benefit tax and insurance deductibility.
The introduction of START and other changes made as a result of our transformation means we are now able to make changes that benefit our customers or improve internal processes at the same time. We now have standard design patterns that allow us to deliver change in a much shorter period of time. We also listen to feedback from our customers as we develop and test improvements, making changes based on their feedback.
An example of this is the changes made to how errors are corrected on employment information returns. We tested the solution with the Aotearoa New Zealand Digital Advisory Group. Their feedback and revised solution helped make it easier for them to implement the solution. Early engagement and co-design with stakeholders will continue to be a key part of improving our change process.
The Cost of Living Payment Scheme was a new type of payment for New Zealand, and we needed to design system requirements and processes to do it. Although the delivery window was very short, from 11 April when policy and decisions were confirmed to the first payment on 1 August 2022, the time frame was manageable. Cost of Living Payments were delivered on time to the agreed specifications.
Read more about this here.
Read about our data sharing work with Tatauranga Aotearoa Stats NZ in the case study here.
You can also read about the review of our confidentiality and data safeguards here, where an assessment team from the OECD’s Global Forum reviewed our frameworks, policies, procedures and practices on confidentiality and data safeguards for exchanges of information and country-by-country reporting.