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August 20, 2015

Simplifying tax – what’s in it for New Zealand?

The transformation of New Zealand's revenue system into a modern customer-centric public service is set to deliver significant benefits to New Zealand. A revenue service that is fit for the future is high on the Government's business growth agenda. From 2016, New Zealanders will begin to experience new ways to interact with Inland Revenue and the revenue system. It will become simpler, faster and more cost-effective for New Zealanders to pay taxes and receive entitlements.

More for New Zealanders

Over the next few years, Inland Revenue's transformation will significantly contribute to the Government's objectives for a healthy, growing economy, and a public service that is focussed on better outcomes for taxpayers.

Streamlining PAYE and GST and encouraging digital interactions will contribute to Better Public Service Results 9 and 10, making it easier for businesses and individuals to interact with Government digitally.

More revenue will be collected through improved compliance with tax rules and obligations.

People and businesses will find it simpler to pay taxes through a system that's more in line with their own financial systems, software and cycles. This should mean a higher success rate for fledgling businesses, creating more long-term taxpayers. It will be easier to get tax right and harder to get it wrong.

A simpler, faster, cost-effective service

A modern, more intuitive, customer-centric tax system will make it simpler for taxpayers to comply with the rules and pay their tax faster and more efficiently. It will be faster for customers to self-manage their tax affairs in the same way they manage their finances online with their bank. The system will be cost-effective with more automation and the right people doing the right tasks.

Delivering the benefits

The benefits will be achieved by linking systems across government and with the private sector, fitting taxes and entitlements seamlessly into customers' broader lives and by making more intelligent use of information. The investment in a modern revenue system will deliver vast benefit for New Zealanders and for a healthy, growing economy.

Raft of new fact-sheets released

The IRD are constantly working to improve the way they communicate with their customers. The best way to do this is to ensure that not only is the information correct but it’s in plain language and easy to understand.

The following new publications can all be downloaded from the IRD website "Forms and guides".

Land sales and GST

  • A new factsheet Land sales and GST (IR730) sums up on one page the GST rules that apply when you buy or sell land, using a helpful flowchart to arrive at the right answer.

Entertainers -tax responsibilities

Providing accommodation in a private home

Tax rules in the construction industry

  • In the building industry, there are three types of construction worker: employees, labour-only contractors or independent contractors.
  • The tax rules are different for each. Our Working in the building industry (IR1026) factsheet explains these differences and the tax rules that apply in each case.

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