Inland Revenue will closely monitor and report on the ongoing results of the increase in tax revenue from increased compliance activities on tax and student loan overseas-based borrowers, including those returning to or visiting New Zealand.
Data is collected throughout the quarter and will be updated a minimum of two months post the end of each quarter. Information will also be included in our annual reports for 2024-25 onwards.
Planned timeline for delivery
July 2024
- Funding received and plans in place on how spend will achieve revenue targets
June 2025
- Revenue uplift/cash collected for Year 1 delivered
Cost
| 24-25 ($m) | 25-26 ($m) | 26-27 ($m) | 27-28 ($m) | |
|---|---|---|---|---|
| Funded administration cost for Inland Revenue | $29.000 | $29.000 | $29.000 | $29.000 |
| Forecast Impact on operating allowance* (IR-Crown) | $99.000 | $201.000 | $201.000 | $201.000 |
| Other forecast impact on operating balance (student loans) | $18.000 | $18.000 | $18.000 | $18.000 |
* Includes increases to revenue and reversals to the impairment expense from collecting more cash from overdue debt.
Indicators of Performance
The following tables track the performance indicators for the investment in compliance activities.
Inland Revenue has not ring-fenced resourcing for the additional activity, therefore intended results are measured by an uplift in revenue and cash collected from the following activities.
Revenue and recovered or disallowed expenditure through IR interventions
Notes:
- 2024-25 return on investment $1:$4
- 2025-26 return on investment $1:$8
| Q1 (Jul-Sep) $m | Q2 (Oct-Dec) $m | Q3 (Jan-Mar) $m | Q4 (Apr-Jun) $m | |
|---|---|---|---|---|
| YTD 2023-24 | $234.7 | $500.9 | ||
| YTD 2024-25 (actual) | $397.4 | $858.7 | ||
| YTD 2024-25 Target range | $160-$270 | $388-$591 |
Revenue assessed from unfiled return activity
Notes:
- 2024-25 return on investment $1:$4
- 2025-26 return on investment $1:$8
| Q1 (Jul-Sep) $m | Q2 (Oct-Dec) $m | Q3 (Jan-Mar) $m | Q4 (Apr-Jun) $m | |
|---|---|---|---|---|
| YTD 2023-24 | $453.7 | $735.6 | ||
| YTD 2024-25 (actual) | $344.8 | $659.1 | ||
| YTD 2024-25 Target range | $345-$456 | $623-$899 |
Cash collected from overdue debt activities
Notes:
- 2024-25 return on investment $1:$4
- 2025-26 return on investment $1:$8
| Q1 (Jul-Sep) $m | Q2 (Oct-Dec) $m | Q3 (Jan-Mar) $m | Q4 (Apr-Jun) $m | |
|---|---|---|---|---|
| YTD 2023-24 | $914.3 | $1,833.1 | ||
| YTD 2024-25 (actual) | $1,213.3 | $2,108.7 | ||
| YTD 2024-25 Target range | $903-$1,233 | $1,854-$2,167 |
Value of repayments collected from overseas-based borrowers
Notes:
- 2024-25 return on investment $1:$4
- 2025-26 return on investment $1:$8
| Q1 (Jul-Sep) $m | Q2 (Oct-Dec) $m | Q3 (Jan-Mar) $m | Q4 (Apr-Jun) $m | |
|---|---|---|---|---|
| YTD 2023-24 | $40.6 | $76.1 | ||
| YTD 2024/25 (actual) | $60.3 | $111.6 | ||
| YTD 2024-25 Target range | $44-$60 | $85-$101 |