Page updated 16 May 2013
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.
For further information on tax, see the Revenue section of the Government Finances menu on this website.
Tax revenue is the main source of core Crown revenue; core Crown tax revenue totalled $55.1 billion in the 2011/12 financial year. See the Financial Statements of the Government of New Zealand for the Year Ended 30 June 2012 for more detail.
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 the Budget Economic and Fiscal Update 2013.
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.
Treasury Research and Policy Papers
To read Treasury papers on tax see the Taxation subject list in the Research and Policy Papers section of the Publications index.
- The Glossary of Tax Terms provides a useful explanation of other terms that are used in the Tax Outturn Data table
- Estimates of Revenue Effects of Small Tax Rate and Tax Base Changes (formerly the Ready Reckoner)
- Key Facts for Taxpayers