The Treasury provides advice to the government on New Zealand's tax system and its impact on the economy.
The Treasury's Role
New Zealand operates a simple and transparent tax system relative to other countries.
The Treasury advises the government on New Zealand's tax system and its impact on the economy. We also conduct research into the effect of taxes on economic behaviour, and advise the government on the performance of Inland Revenue.
Responsibility for developing tax policy is shared by the Treasury and Inland Revenue. There is currently an independant Tax Working Group in order to examine further improvements in the structure, fairness and balance of the tax system. For further information on tax, see the Revenue and expenditure section on this website.
Tax revenue is the main source of core Crown revenue; core Crown tax revenue totalled $75.6 billion in the 2016/17 financial year. See:
- Financial Statements of the Government of New Zealand for the Year Ended 30 June 2017
- Government 2018 Revenue Strategy
Tax Forecasts by the Inland Revenue
In line with established practice, Inland Revenue prepares an independent set of tax forecasts, based in the short term on analysis of taxpayer information, and in the longer term on the same broad macroeconomic trends that underpin the Treasury's tax forecasts.
The Treasury's forecasts are the Crown's official forecasts.
For more information on Inland Revenue's tax forecasts and a comparison against Treasury's tax forecasts see:
Tax expenditures take the form of an exemption, allowance, preferential tax rate, deferral or offset that reduce a tax obligation to achieve a specific policy objective. Since 2010 Treasury has published a statement on tax expenditures as part of the Budget. The purpose of this statement is to provide additional transparency around policy-motivated expenditures made through the tax system. For more information see:
The Government publishes discussion papers and consults on tax issues
Tax issues papers are released jointly by the Treasury and the Policy Advice Division of the Inland Revenue Department (IRD) and/or the Ministry of Economic Development, or by Government ministers.
The Policy Advice Division of IRD maintains a list of Tax Issues Papers and Discussion Documents, including an archive of previous Tax Issues Papers where the deadline for submissions has passed. That site also has information on how to make a submission to the Policy Advice Division on tax issues papers.
Treasury Research and Policy Papers
To read Treasury papers on tax search based on keyword in the publications search.