Supplementary estimates of appropriations

Vote Revenue - Supplementary Estimates 2019/20

Formats and related files

Vote Revenue#

APPROPRIATION MINISTER(S): Minister of Revenue (M57), Minister of Research, Science and Innovation (M84)

APPROPRIATION ADMINISTRATOR: Inland Revenue Department

RESPONSIBLE MINISTER FOR INLAND REVENUE DEPARTMENT: Minister of Revenue

Details of Appropriations and Capital Injections#

Annual Appropriations and Forecast Permanent Appropriations#

Titles and Scopes of Appropriations by Appropriation Type 2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000

Departmental Output Expenses

     

Policy Advice (M57)

This appropriation 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.
10,564 635 11,199

Services to Other Agencies RDA (M57)

This appropriation is limited to the provision of services by Inland Revenue to other agencies, where those services are not within the scope of another departmental output expense appropriation in Vote Revenue.
3,962 1,700 5,662

Total Departmental Output Expenses

14,526 2,335 16,861

Departmental Capital Expenditure

     

Inland Revenue Department - Capital Expenditure PLA (M57)

This appropriation is limited to the purchase or development of assets by and for the use of the Inland Revenue Department, as authorised by section 24(1) of the Public Finance Act 1989.
150,000 (35,392) 114,608

Total Departmental Capital Expenditure

150,000 (35,392) 114,608

Benefits or Related Expenses

     

Best Start Tax Credit PLA (M57)

This appropriation is limited to Best Start Tax Credits made to eligible recipients in accordance with section 185 of the Tax Administration Act 1994.
231,000 (43,000) 188,000

Child Support Payments PLA (M57)

Child support payments to custodial persons who are not dependent on the state for financial support (expenses incurred pursuant to section 141 of the Child Support Act 1991).
317,000 (22,000) 295,000

Child Tax Credit PLA (M57)

Extra assistance for low to middle income families who are not dependent on the state for financial support (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
400 (300) 100

Family Tax Credit PLA (M57)

Family Support payments made to beneficiaries and non-beneficiaries during the year (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
2,195,000 (51,000) 2,144,000

In-Work Tax Credit PLA (M57)

Extra assistance for low to middle income families where the person works a minimum of 20 hours per week and does not have a partner, or a person and their partner work a minimum of 30 hours per week (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
521,000 82,000 603,000

KiwiSaver: Interest (M57)

To enable the payment of interest on KiwiSaver contributions as set out in the KiwiSaver Act 2006.
9,000 - 9,000

KiwiSaver: Tax Credit (M57)

To enable the payment of a tax credit to KiwiSaver members and the payment of residual tax credits to employers as set out in the Income Tax Act 2007.
906,000 6,000 912,000

Minimum Family Tax Credit PLA (M57)

Extra payment made to families where at least one parent is working for salary or wages (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
15,000 5,000 20,000

Paid Parental Leave Payments (M57)

This appropriation is limited to Paid Parental Leave Payments made to parents in accordance with the Parental Leave and Employment Protection Act 1987.
400,000 30,000 430,000

Parental Tax Credit PLA (M57)

This appropriation is limited to expenses incurred on parental tax credit as provided for in subpart MD of the Income Tax Act 2007 and as authorised by section 185 of the Tax Administration Act 1994.
- 1,000 1,000

Payroll Subsidy PLA (M57)

This appropriation is limited to the payment of a subsidy to a payroll agent undertaking employers' payroll-related tax compliance activities on their behalf, section 185 of the Tax Administration Act 1994.
3,900 100 4,000

Research, Science and Innovation: R&D Tax Incentive (M84)

This appropriation is limited to providing an R&D tax credit to eligible R&D performing businesses.
158,000 67,000 225,000

Total Benefits or Related Expenses

4,756,300 74,800 4,831,100

Non-Departmental Borrowing Expenses

     

Adverse Event Interest PLA (M57)

This appropriation is limited to interest on Adverse Event Income Equalisation Reserve accounts held by taxpayers in the farming and agriculture business, authorised by section 65ZH(1) of the Public Finance Act 1989.
10 - 10

Environmental Restoration Account Interest PLA (M57)

This appropriation is limited to interest on Environmental Restoration accounts, authorised by section 65ZH(1) of the Public Finance Act 1989.
1,500 - 1,500

Income Equalisation Interest PLA (M57)

This appropriation is limited to interest on Income Equalisation Reserve Scheme accounts held by taxpayers in the farming, fishing or forestry industries, authorised by section 65ZH(1) of the Public Finance Act 1989.
6,000 - 6,000

Total Non-Departmental Borrowing Expenses

7,510 - 7,510

Non-Departmental Other Expenses

     

Impairment of Debt and Debt Write-Offs (M57)

This appropriation is limited to bad debt write-offs for Crown debt administered by Inland Revenue, excluding child support and student loans and to amounts relating to the impairment of this debt.
680,000 590,000 1,270,000

Impairment of Debt Relating to Child Support (M57)

This appropriation is limited to the impairment of child support debt.
- 5,000 5,000

Initial Fair Value Write-Down Relating to Student Loans (M57)

This appropriation is limited to the initial fair value write-down of student loans.
576,000 (66,000) 510,000

KiwiSaver: Employee and Employer Contributions PLA (M57)

To enable the on-payment of employee and employer KiwiSaver contributions collected by Inland Revenue to KiwiSaver Scheme providers in accordance with section 73 of the KiwiSaver Act 2006.
- 1,856,000 1,856,000

Total Non-Departmental Other Expenses

1,256,000 2,385,000 3,641,000

Multi-Category Expenses and Capital Expenditure

     

Services for Customers MCA (M57)

The single overarching purpose of this appropriation is to deliver a customer-centric, integrated tax and entitlement service experience for New Zealanders that is agile and intelligence-led.
623,201 29,655 652,856

Departmental Output Expenses

     

Investigations

This category is limited to undertaking investigation, audit and litigation activities administered by Inland Revenue.
144,017 (20,907) 123,110

Management of Debt and Outstanding Returns

This category is limited to activities to prevent returns becoming outstanding and debt becoming overdue, and to collect outstanding returns and overdue payments, whether for the Crown, other agencies or external parties.
131,271 (38,091) 93,180

Services to Inform the Public About Entitlements and Meeting Obligations

This category is limited to providing information and assistance to the public to make them aware of their obligations and entitlements. This also includes the provision of services to help Ministers fulfil their responsibilities to Parliament and the New Zealand public, other than policy decision-making responsibilities.
233,272 43,230 276,502

Services to Process Obligations and Entitlements

This category is limited to both 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.
114,641 45,423 160,064

Total Multi-Category Expenses and Capital Expenditure

623,201 29,655 652,856

Total Annual Appropriations and Forecast Permanent Appropriations

6,807,537 2,456,398 9,263,935

Multi-Year Appropriations#

Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Departmental Other Expenses

   

Transformation (M57)

This appropriation is limited to the design and implementation of a modern system for tax revenue and social policy administered by Inland Revenue.

Commences: 01 July 2017

Expires: 30 June 2022
Original Appropriation 1,112,607
Adjustments to 2018/19 10,154
Adjustments for 2019/20 (46,946)
Adjusted Appropriation 1,075,815
Actual to 2018/19 Year End 400,132
Estimated Actual for 2019/20 205,893
Estimate for 2020/21 326,464
Estimated Appropriation Remaining 143,326

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations#

  2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Total Annual Appropriations and Forecast Permanent Appropriations 6,807,537 2,456,398 9,263,935
Total Forecast MYA Departmental Other Expenses 239,086 (33,193) 205,893

Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations

7,046,623 2,423,205 9,469,828

Capital Injection Authorisations#

  2019/20
Estimates
Budget
$000
Supplementary
Estimates
Budget
$000
Total
Budget
$000
Inland Revenue Department - Capital Injection (M57) 103,000 - 103,000

Supporting Information#

Part 1 - Vote as a Whole#

Summary of Financial Activity

  2019/20
Estimates
$000
Supplementary Estimates Total
$000
Departmental
Transactions
$000
Non-Departmental
Transactions
$000
Total
Transactions
$000

Appropriations

         
Output Expenses 14,526 2,335 - 2,335 16,861
Benefits or Related Expenses 4,756,300 N/A 74,800 74,800 4,831,100
Borrowing Expenses 7,510 - - - 7,510
Other Expenses 1,495,086 (33,193) 2,385,000 2,351,807 3,846,893
Capital Expenditure 150,000 (35,392) - (35,392) 114,608
Intelligence and Security Department Expenses and Capital Expenditure - - N/A - -
Multi-Category Expenses and Capital Expenditure (MCA)          
Output Expenses 623,201 29,655 - 29,655 652,856
Other Expenses - - - - -
Capital Expenditure - N/A - - -

Total Appropriations

7,046,623 (36,595) 2,459,800 2,423,205 9,469,828

Crown Revenue and Capital Receipts

         
Tax Revenue 80,767,000 N/A (4,664,000) (4,664,000) 76,103,000
Non-Tax Revenue 990,500 N/A (82,000) (82,000) 908,500
Capital Receipts 1,545,000 N/A (90,000) (90,000) 1,455,000

Total Crown Revenue and Capital Receipts

83,302,500 N/A (4,836,000) (4,836,000) 78,466,500

Part 2 - Details of Departmental Appropriations#

2.1 - Departmental Output Expenses#

Policy Advice (M57)

Scope of Appropriation
This appropriation 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.
Expenses and Revenue
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 10,564 635 11,199
Revenue from the Crown 10,547 635 11,182
Revenue from Others 17 - 17
Reasons for Change in Appropriation

This appropriation increased by $635,000 to $11.199 million for 2019/20 due to a transfer from 2018/19 to 2019/20 for policy advice and implementation work in response to the Tax Working Group's final report.

Services to Other Agencies RDA (M57)

Scope of Appropriation
This appropriation is limited to the provision of services by Inland Revenue to other agencies, where those services are not within the scope of another departmental output expense appropriation in Vote Revenue.
Expenses and Revenue
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Total
$000
Total Appropriation 3,962 1,700 5,662
Revenue from the Crown - - -
Revenue from Others 3,962 1,700 5,662
Reasons for Change in Appropriation

This appropriation increased by $1.700 million to $5.662 million for 2019/20 due to a fiscally neutral adjustment for recovery of revenue from external parties for Inland Revenue staff on external secondments.

2.2 - Departmental Other Expenses#

Transformation (M57)

Scope of Appropriation and Expenses
Type, Title, Scope and Period of Appropriations Appropriations, Adjustments and Use $000

Transformation (M57)

This appropriation is limited to the design and implementation of a modern system for tax revenue and social policy administered by Inland Revenue.

Commences: 01 July 2017

Expires: 30 June 2022
Original Appropriation 1,112,607
Adjustments to 2018/19 10,154
Adjustments for 2019/20 (46,946)
Adjusted Appropriation 1,075,815
Actual to 2018/19 Year End 400,132
Estimated Actual for 2019/20 205,893
Estimate for 2020/21 326,464
Estimated Appropriation Remaining 143,326
Reasons for Change in Appropriation

This appropriation decreased by $46.946 million to $1,075.815 million for 2019/20 due to:

  • the return of ministerial contingency of $101.272 million, and
  • fiscally neutral adjustments of $89 million across the 2019/20 and 2020/21 financial years from Transformation multi-year appropriation to Services for Customers multi-category appropriation to fund the incremental costs arising from new assets, systems and capabilities delivered by Inland Revenue's transformation.

This is partially offset by a technical adjustment of $143.326 million to extend the Transformation multi-year appropriation to 2021/22.

2.3 - Departmental Capital Expenditure and Capital Injections#

Inland Revenue Department - Capital Expenditure PLA (M57)

Scope of Appropriation
This appropriation is limited to the purchase or development of assets by and for the use of the Inland Revenue Department, as authorised by section 24(1) of the Public Finance Act 1989.
Capital Expenditure
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Total
$000
Forests/Agricultural - - -
Land - - -
Property, Plant and Equipment 8,000 - 8,000
Intangibles 142,000 (35,392) 106,608
Other - - -

Total Appropriation

150,000 (35,392) 114,608
Reasons for Change in Appropriation

This appropriation decreased by $35.392 million to $114.608 million due to a return of $34 million of business transformation capital funding and a $1.392 million decrease in forecast capital expenditure to align with Inland Revenue's updated capital replacement programme.

Capital Injections and Movements in Departmental Net Assets
Inland Revenue Department
Details of Net Asset Schedule 2019/20
Main Estimates Projections
$000
2019/20
Supplementary Estimates Projections
$000
Explanation of Projected Movements in 2019/20
Opening Balance 381,155 382,321 Supplementary Estimates opening balance reflects the audited results as at 30 June 2019. The Main Estimates Projection was estimated prior to audit completion.
Capital Injections 103,000 103,000  
Capital Withdrawals (627) (34,627) Contingency capital funding for business transformation of $34 million has been returned to the Crown. The updated risk modelling shows that Inland Revenue will be able to deliver transformation without the need to access the ministerial contingency.
Surplus to be Retained (Deficit Incurred) - -  
Other Movements - -  

Closing Balance

483,528 450,694  

Part 3 - Details of Non-Departmental Appropriations#

Best Start Tax Credit PLA (M57)

Scope of Appropriation
This appropriation is limited to Best Start Tax Credits made to eligible recipients in accordance with section 185 of the Tax Administration Act 1994.
Reasons for Change in Appropriation

This appropriation decreased by $43 million to $188 million for 2019/20 due to a forecast change in the timing of some year-end square-ups, to adjust for final annual incomes, into the following financial year.

Child Support Payments PLA (M57)

Scope of Appropriation
Child support payments to custodial persons who are not dependent on the state for financial support (expenses incurred pursuant to section 141 of the Child Support Act 1991).
Reasons for Change in Appropriation

This appropriation decreased by $22 million to $295 million for 2019/20 due to a lower starting point of payments for the financial year than forecast in the 2019/20 Estimates documents.

Child Tax Credit PLA (M57)

Scope of Appropriation
Extra assistance for low to middle income families who are not dependent on the state for financial support (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Reasons for Change in Appropriation

This appropriation decreased by $300,000 to $100,000 for 2019/20 due to a reduction in the final tail end of claims for this ceasing tax credit. The 2019/20 year is the final year this tax credit will be paid.

Family Tax Credit PLA (M57)

Scope of Appropriation
Family Support payments made to beneficiaries and non-beneficiaries during the year (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Reasons for Change in Appropriation

This appropriation decreased by $51 million to $2,144 million for 2019/20 due to a new forecast system of measurement for Working for Families Tax Credits that changes the allocation between the individual credits.

In-Work Tax Credit PLA (M57)

Scope of Appropriation
Extra assistance for low to middle income families where the person works a minimum of 20 hours per week and does not have a partner, or a person and their partner work a minimum of 30 hours per week (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Reasons for Change in Appropriation

This appropriation increased by $82 million to $603 million for 2019/20 due to a new forecast system of measurement for Working for Families Tax Credits that changes allocation between the individual credits.

KiwiSaver: Tax Credit (M57)

Scope of Appropriation
To enable the payment of a tax credit to KiwiSaver members and the payment of residual tax credits to employers as set out in the Income Tax Act 2007.
Reasons for Change in Appropriation

This appropriation increased by $6 million to $912 million for 2019/20. The decrease in the forecast number of contributing members has reduced the forecast by $4 million. The estimate for KiwiSaver tax credit includes a level of contingency ($10 million) as this appropriation is demand driven and does not have a permanent legislative authority.

Minimum Family Tax Credit PLA (M57)

Scope of Appropriation
Extra payment made to families where at least one parent is working for salary or wages (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Reasons for Change in Appropriation

This appropriation increased by $5 million to $20 million for 2019/20 due to a new forecast system of measurement for Working for Families Tax Credits that changes the allocation between the individual credits.

Paid Parental Leave Payments (M57)

Scope of Appropriation
This appropriation is limited to Paid Parental Leave Payments made to parents in accordance with the Parental Leave and Employment Protection Act 1987.
Reasons for Change in Appropriation

This appropriation increased by $30 million to $430 million for 2019/20 due to an increase in claims for parental leave. The estimate for paid parental leave payments includes a level of contingency ($5 million) as this appropriation is demand driven and does not have a permanent legislative authority.

Parental Tax Credit PLA (M57)

Scope of Appropriation
This appropriation is limited to expenses incurred on parental tax credit as provided for in subpart MD of the Income Tax Act 2007 and as authorised by section 185 of the Tax Administration Act 1994.
What is Intended to be Achieved with this Appropriation

This permanent appropriation provides for payments to families with a new-born baby for the first 10 weeks after the birth to help with day-to-day living costs.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for parental tax credit payments under the Income Tax Act 2007. Performance information relating to the administration of the payment is provided under the Services for Customers Multi-Category Appropriation under the Services to Process Obligations and Entitlements category.

Reasons for Change in Appropriation

This appropriation increased by $1 million to $1 million for 2019/20 due to a forecast increase in the final claims for this tax credit. The parental tax credit has been replaced by Best Start tax credit, from 1 July 2018. The residual appropriation is for claims that relate to children born before 1 July 2018.

Payroll Subsidy PLA (M57)

Scope of Appropriation
This appropriation is limited to the payment of a subsidy to a payroll agent undertaking employers' payroll-related tax compliance activities on their behalf, section 185 of the Tax Administration Act 1994.
Reasons for Change in Appropriation

This appropriation increased by $100,000 to $4 million for 2019/20 due to higher demand than expected in the final year of this subsidy.

Research, Science and Innovation: R&D Tax Incentive (M84)

Scope of Appropriation
This appropriation is limited to providing an R&D tax credit to eligible R&D performing businesses.
Reasons for Change in Appropriation

This appropriation increased by $67 million to $225 million for 2019/20 due to updated assumptions on how the phasing out of the Growth Grant Scheme impacts on the tax credit and an increased estimate on expenditure on research and development activities based on the Statistics New Zealand Research and Development survey for 2019.

3.4 - Non-Departmental Other Expenses#

Impairment of Debt and Debt Write-Offs (M57)

Scope of Appropriation
This appropriation is limited to bad debt write-offs for Crown debt administered by Inland Revenue, excluding child support and student loans and to amounts relating to the impairment of this debt.
Reasons for Change in Appropriation

This appropriation increased by $590 million to $1,270 million for 2019/20 due to a forecast increase in the level of overdue debt since 30 June 2019 and a reduction in the collectability of aged debt. The increase includes a contingency ($300 million) to cover an initial assessment of COVID-19 related impacts on debt and debt collectability and to prevent any unauthorised expenditure as this appropriation does not have a permanent legislative authority.

Impairment of Debt Relating to Child Support (M57)

Scope of Appropriation
This appropriation is limited to the impairment of child support debt.
What is Intended to be Achieved with this Appropriation

This appropriation provides for incurring the expense involved in recognising an impairment loss to reflect the recoverable value of the total child support debt as at the end of the financial year.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption was granted under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the impairment of child support debt. Performance information relating to this expenditure is provided under the Services for Customers Multi-Category Appropriation under the Management of Debt and Outstanding Returns category.

Reasons for Change in Appropriation

The appropriation increased by $5 million to $5 million in 2019/20 to reflect the inclusion of a contingency to cover an initial assessment of COVID-19 related impacts on debt and debt collectability and to prevent any unauthorised expenditure as this appropriation does not have a permanent legislative authority.

Initial Fair Value Write-Down Relating to Student Loans (M57)

Scope of Appropriation
This appropriation is limited to the initial fair value write-down of student loans.
Reasons for Change in Appropriation

This appropriation decreased by $66 million to $510 million in 2019/20 mainly due to a reduction in interest rates. The estimate also includes contingency ($20 million) to prevent any unauthorised expenditure as this appropriation does not have a permanent legislative authority.

KiwiSaver: Employee and Employer Contributions PLA (M57)

Scope of Appropriation
To enable the on-payment of employee and employer KiwiSaver contributions collected by Inland Revenue to KiwiSaver Scheme providers in accordance with section 73 of the KiwiSaver Act 2006.
What is Intended to be Achieved with this Appropriation

This permanent appropriation provides for the on-payment of employee and employer KiwiSaver contributions collected by Inland Revenue to KiwiSaver Scheme providers.

How Performance will be Assessed and End of Year Reporting Requirements

An exemption is being sought under section 15D(2)(b)(ii) of the Public Finance Act 1989, as additional performance information is unlikely to be informative because this appropriation is solely for the on-payment of employee and employer KiwiSaver contributions collected by Inland Revenue to KiwiSaver Scheme providers. Performance information relating to the administration of the payment is provided under the Services for Customers Multi-Category Appropriation under the Services to Process Obligations and Entitlements category.

Reasons for Change in Appropriation

The KiwiSaver Employee and Employer contributions appropriation is new from 1 April 2020. The appropriation reports the on-payment of both employee and employer KiwiSaver contributions collected by Inland Revenue to KiwiSaver scheme providers.

Part 4 - Details of Multi-Category Expenses and Capital Expenditure#

Multi-Category Expenses and Capital Expenditure#

Services for Customers (M57)

Overarching Purpose Statement
The single overarching purpose of this appropriation is to deliver a customer-centric, integrated tax and entitlement service experience for New Zealanders that is agile and intelligence-led.
Scope of Appropriation
Departmental Output Expenses

Investigations
This category is limited to undertaking investigation, audit and litigation activities administered by Inland Revenue.

Management of Debt and Outstanding Returns
This category is limited to activities to prevent returns becoming outstanding and debt becoming overdue, and to collect outstanding returns and overdue payments, whether for the Crown, other agencies or external parties.

Services to Inform the Public About Entitlements and Meeting Obligations
This category is limited to providing information and assistance to the public to make them aware of their obligations and entitlements. This also includes the provision of services to help Ministers fulfil their responsibilities to Parliament and the New Zealand public, other than policy decision-making responsibilities.

Services to Process Obligations and Entitlements
This category is limited to both 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.

Expenses, Revenue and Capital Expenditure
  2019/20
Estimates
$000
Supplementary
Estimates
$000
Total
$000

Total Appropriation

623,201 29,655 652,856

Departmental Output Expenses

     
Investigations 144,017 (20,907) 123,110
Management of Debt and Outstanding Returns 131,271 (38,091) 93,180
Services to Inform the Public About Entitlements and Meeting Obligations 233,272 43,230 276,502
Services to Process Obligations and Entitlements 114,641 45,423 160,064

Funding for Departmental Output Expenses

     

Revenue from the Crown

598,562 32,905 631,467
Investigations 143,661 (20,907) 122,754
Management of Debt and Outstanding Returns 129,197 (38,091) 91,106
Services to Inform the Public About Entitlements and Meeting Obligations 231,909 43,230 275,139
Services to Process Obligations and Entitlements 93,795 48,673 142,468

Revenue from Others

24,639 (3,250) 21,389
Investigations 356 - 356
Management of Debt and Outstanding Returns 2,074 - 2,074
Services to Inform the Public About Entitlements and Meeting Obligations 1,363 - 1,363
Services to Process Obligations and Entitlements 20,846 (3,250) 17,596
Reasons for Change in Appropriation

This appropriation increased by $29.655 million to $652.856 million in 2019/20 due to:

  • a fiscally neutral adjustment of $44.500 million to transfer depreciation and capital charge funding from the Transformation MYA to this MCA
  • a fiscally neutral adjustment of $5.170 million to transfer funding for the Research and Development Tax Incentive scheme from Vote Research, Science and Innovation to Vote Revenue
  • an expense transfer of $4 million from 2018/19 to 2019/20 for IT activities to support customer demand for Release 3 of Inland Revenue's business transformation
  • an expense transfer of $2.370 million from 2018/19 to 2019/20 for customer communications campaigns, and
  • an expense transfer of $365,000 from 2018/19 to 2019/20 for policy advice and implementation work in response to the Tax Working Group's final report.

This is partially offset by:

  • a retention of administrative efficiency savings of $15 million transferred from 2019/20 to 2020/21 to support customers through the changes introduced in Release 3 and 4 of business transformation
  • a retention of administrative efficiency savings of $8.500 million transferred from 2019/20 to 2020/21 to manage anticipated cost pressures in 2020/21, and
  • a fiscally neutral adjustment of $3.250 million to reflect a reduction in the collection fee we charge ACC.