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 |
Addition to the Supplementary Estimates Budget $000 |
Cumulative 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 | - | 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 | - | 1,700 | 5,662 | |
| Total Departmental Output Expenses | 14,526 | 2,335 | - | 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) | - | (35,392) | 114,608 | |
| Total Departmental Capital Expenditure | 150,000 | (35,392) | - | (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) | - | (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) | - | (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) | - | (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) | - | (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 | - | 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 | - | 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 | - | 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 | - | 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 | 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 | - | 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 | - | 67,000 | 225,000 | |
| Total Benefits or Related Expenses | 4,756,300 | 74,800 | - | 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 | - | 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 | 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) | - | (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 | 1,856,000 | |
|
Initial Fair Value Write-Down Relating to the Small Business Cashflow Scheme COVID-19 (M57) This appropriation is limited to the initial fair value write-down of the small business cashflow scheme COVID-19. |
- | - | 3,444,000 |
3,444,000
|
3,444,000
|
|
| Total Non-Departmental Other Expenses | 1,256,000 | 2,385,000 | 3,444,000 | 5,829,000 | 7,085,000 | |
| Non-Departmental Capital Expenditure | ||||||
|
Small Business Cashflow Scheme COVID-19 (M57) This appropriation is limited to providing a loan to eligible businesses to manage the economic impacts of COVID-19. |
- | - | 5,200,000 | 5,200,000 | 5,200,000 | |
| Total Non-Departmental Capital Expenditure | - | - | 5,200,000 | 5,200,000 | 5,200,000 | |
| 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 | 3,500 | 33,155 | 656,356 | |
| Departmental Output Expense | ||||||
|
Investigations This category is limited to undertaking investigation, audit and litigation activities administered by Inland Revenue. |
144,017 | (20,907) | - | (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) | - | (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 | 1,500 | 44,730 | 278,002 | |
|
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 | 2,000 | 47,423 | 162,064 | |
| Total Multi-Category Expenses and Capital Expenditure | 623,201 | 29,655 | 3,500 | 33,155 | 656,356 | |
| Total Annual Appropriations and Forecast Permanent Appropriations | 6,807,537 | 2,456,398 | 8,647,500 | 11,103,898 | 17,911,435 | |
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 |
| Net adjustments to 2018/19 | 10,154 | |
| Adjustment for 2019/20 | (46,946) | |
| Adjusted Appropriation | 1,075,815 | |
| Actual to end of 2018/19 | 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 and Multi-Year Appropriations#
| 2019/20 | |||||
|---|---|---|---|---|---|
| Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Addition to the Supplementary Estimates Budget $000 |
Cumulative Supplementary Estimates Budget $000 |
Total Budget $000 |
|
| Total Annual Appropriations and Forecast Permanent Appropriations | 6,807,537 | 2,456,398 | 8,647,500 | 11,103,898 | 17,911,435 |
| Total Forecast MYA Departmental Other Expenses | 239,086 | (33,193) | - | (33,193) | 205,893 |
| Total Annual Appropriations and Forecast Permanent Appropriations and Multi-Year Appropriations | 7,046,623 | 2,423,205 | 8,647,500 | 11,070,705 | 18,117,328 |
Capital Injection Authorisations#
| 2019/20 | ||||||
|---|---|---|---|---|---|---|
| Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Addition to the Supplementary Estimates Budget $000 |
Cumulative 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#
1.2 - Trends in the Vote
Summary of Financial Activity
| 2019/20 | |||||
|---|---|---|---|---|---|
| Estimates $000 |
Cumulative 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) | 5,829,000 | 5,795,807 | 7,290,893 |
| Capital Expenditure | 150,000 | (35,392) | 5,200,000 | 5,164,608 | 5,314,608 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | |||||
| Output Expenses | 623,201 | 33,155 | - | 33,155 | 656,356 |
| Other Expenses | - | - | - | - | - |
| Capital Expenditure | - | N/A | - | - | - |
| Total Appropriations | 7,046,623 | (33,095) | 11,103,800 | 11,070,705 | 18,117,328 |
| 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 3 - Details of Non-Departmental Appropriations#
3.4 - Non-Departmental Other Expenses
Initial Fair Value Write-Down Relating to the Small Business Cashflow Scheme COVID-19 (M57)
Scope of Appropriation
What is Intended to be Achieved with this Appropriation
This appropriation provides for incurring the expense relating to reductions in the nominal value of the Small Business Cashflow (Loan) Scheme lending to reflect the present value of that lending.
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 expenses relating to reductions in the nominal value of small business cash flow scheme lending. Performance information relating to the administration of the scheme is provided under the Services for Customers Multi-Category Appropriation.
Reasons for Change in Appropriation
This appropriation is new from 12 May 2020. This appropriation was established in May 2020 as part of the COVID-19 response to record expenses related to the reduction in the nominal value of small business cashflow scheme lending.
3.5 - Non-Departmental Capital Expenditure
Small Business Cashflow Scheme COVID-19 (M57)
Scope of Appropriation
What is Intended to be Achieved with this Appropriation
This appropriation provides cashflow support to viable small to medium businesses impacted by COVID-19.
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 cashflow support to viable small to medium businesses impacted by COVID-19. Performance information relating to the administration of the scheme is provided under the Services for Customers Multi-Category Appropriation.
Reasons for Change in Appropriation
This appropriation was established in May 2020 as part of the COVID-19 response. Inland Revenue started processing applications for loans to small to medium businesses eligible for the scheme on 12 May 2020.
Part 4 - Details of Multi-Category Expenses and Capital Expenditure#
4 - Multi-Category Expenses and Capital Expenditure
Services for Customers (M57)
Overarching Purpose Statement
Scope of Appropriation
Departmental Output Expense
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
Expenses, Revenue and Capital Expenditure
| 2019/20 | ||||
|---|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Addition to the Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 623,201 | 29,655 | 3,500 | 656,356 |
| 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 | 1,500 | 278,002 |
| Services to Process Obligations and Entitlements | 114,641 | 45,423 | 2,000 | 162,064 |
| Funding for Departmental Output Expenses | ||||
| Revenue from the Crown | 598,562 | 32,905 | 3,500 | 634,967 |
| 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 | 1,500 | 276,639 |
| Services to Process Obligations and Entitlements | 93,795 | 48,673 | 2,000 | 144,468 |
| 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 a $3.500 million to $656.356 million in 2019/20 with the addition of:
- $2 million to administer the Small Business Cashflow (Loan) Scheme, and
- $1.500 million to support the Ministry of Social Development administer the Wage Subsidy Scheme.