Formats and related files
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Revenue (M57)
ADMINISTERING DEPARTMENT: Inland Revenue Department
MINISTER RESPONSIBLE FOR INLAND REVENUE DEPARTMENT: Minister of Revenue
Details of Appropriations#
Details of Annual and Permanent Appropriations
| 2010/11 | |||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Estimates Budget $000 |
Supplementary Estimates Budget $000 |
Total Budget $000 |
Departmental Output Expenses |
|||
Management of Debt and Outstanding Returns (M57)Taking action where returns are outstanding and where payments are overdue, including providing people with assistance on the actions they need to take to meet their obligations. This includes collection on behalf of other agencies and external parties. |
99,138 | 2,997 | 102,135 |
Policy Advice (M57)Advising on all aspects of tax policy and social policy measures that interact with the tax system. Drafting tax legislation. Negotiating and maintaining New Zealand's network of double tax agreements with other countries. Forecasting tax revenues and providing ministerial services. |
15,285 | (173) | 15,112 |
Services to Inform the Public About Entitlements and Meeting Obligations (M57)Providing information and assistance to customers on the application of the law. Responding to customer enquiries about tax and social support programmes. Adjudication on behalf of the Commissioner on proposed taxpayer assessments. Providing binding rulings and other statements on the interpretation and application of the law administered by Inland Revenue. |
245,530 | (3,760) | 241,770 |
Services to Process Obligations and Entitlements (M57)Registering tax payers, making tax assessments, assessing child support liabilities including providing a readily accessible inexpensive process for reviewing assessments, receiving and making payments to customers, processing applications and payments for social support programmes, collection of ACC Earners' levies, supplying information to other government agencies and accounting and reporting the collection of Crown revenue. |
114,664 | 3,024 | 117,688 |
Taxpayer Audit (M57)Identifying risks to revenue and designing and undertaking audit activities accordingly. Managing litigation of disputed tax cases. |
173,646 | (7,434) | 166,212 |
Total Departmental Output Expenses |
648,263 | (5,346) | 642,917 |
Benefits and Other Unrequited Expenses |
|||
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). |
225,000 | (12,000) | 213,000 |
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). |
3,100 | (300) | 2,800 |
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). |
2,229,000 | (24,600) | 2,204,400 |
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). |
597,080 | (5,080) | 592,000 |
KiwiSaver: Employer Tax Credit (M57)To enable the payment of a tax credit to employers in respect of their contributions to KiwiSaver as set out in the Income Tax Act 2007. |
- | 198 | 198 |
KiwiSaver: Interest (M57)To enable the payment of interest on KiwiSaver contributions as set out in the KiwiSaver Act 2006. |
6,000 | (1,000) | 5,000 |
KiwiSaver: Kickstart Payment (M57)To enable the one-off payment made on opening a KiwiSaver account for members who meet the required eligibility criteria as set in the KiwiSaver Act 2006. |
293,000 | 9,000 | 302,000 |
KiwiSaver: Member Tax Credit (M57)To enable the payment of a tax credit to KiwiSaver members as set out in the Income Tax Act 2007. |
880,000 | (616,308) | 263,692 |
KiwiSaver: Tax Credits (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. |
- | 468,110 | 468,110 |
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). |
10,000 | (400) | 9,600 |
Paid Parental Leave Payments PLA (M57)Paid Parental Leave Payments made to parents eligible under the Parental Leave and Employment Protection Act 1987. |
162,800 | (8,200) | 154,600 |
Parental Tax Credit PLA (M57)To enable payment of additional financial support to be made to working families for the eight week period following the birth of a child (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). |
19,840 | (640) | 19,200 |
Payroll Subsidy (M57)To enable the payment of a subsidy to a payroll agent undertaking employers' payroll-related tax compliance activities on their behalf. |
4,000 | (2,000) | 2,000 |
Total Benefits and Other Unrequited Expenses |
4,429,820 | (193,220) | 4,236,600 |
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 (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). |
10 | - | 10 |
Environmental Restoration Account Interest PLA (M57)This appropriation is limited to interest on Environmental Restoration accounts (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). |
2,000 | - | 2,000 |
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 (expenses incurred pursuant to section 185 of the Tax Administration Act 1994). |
7,000 | - | 7,000 |
Total Non-Departmental Borrowing Expenses |
9,010 | - | 9,010 |
Departmental Other Expenses |
|||
Recovery from February 2011 Christchurch Earthquake (M57)This appropriation is limited to writing off, or making good damage to, departmental assets, maintaining output delivery and re-establishing departmental operations in Christchurch following the 22 February 2011 earthquake. |
- | 4,380 | 4,380 |
Total Departmental Other Expenses |
- | 4,380 | 4,380 |
Non-Departmental Other Expenses |
|||
Bad Debt Write-Offs (M57)This appropriation is limited to bad debt write-offs for Crown debt administered by Inland Revenue. |
931,000 | (112,000) | 819,000 |
Impairment of Debt (M57)This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the debt, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the Crown debt book. |
222,650 | 88,350 | 311,000 |
Impairment of Debt Relating to Child Support (M57)This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the debt, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the collective book of child support debt. |
401,000 | (71,000) | 330,000 |
Impairment of Debt Relating to Student Loans (M57)This appropriation is limited to amounts relating to impairment arising from objective evidence of one or more loss events that occurred after the initial recognition of the loan, and the loss event (or events) has had a reliably measurable impact on the estimated future cash flows of the collective book of student loan debt. |
100,000 | 54,000 | 154,000 |
Total Non-Departmental Other Expenses |
1,654,650 | (40,650) | 1,614,000 |
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. |
95,788 | (24,862) | 70,926 |
Total Departmental Capital Expenditure |
95,788 | (24,862) | 70,926 |
Total Annual and Permanent Appropriations |
6,837,531 | (259,698) | 6,577,833 |
Details of Projected Movements in Departmental Net Assets#
Inland Revenue Department
| Details of Net Asset Schedule | 2010/11 Main Estimates Projections $000 |
2010/11 Supplementary Estimates Projections $000 |
Explanation of Projected Movements in 2010/11 |
|---|---|---|---|
| Opening Balance | 241,292 | 241,292 | Supplementary Estimates opening balance reflects the audited results as at 30 June 2010. |
| Capital Injections | 24,391 | 24,391 | |
| Capital Withdrawals | (256) | (720) | Capital withdrawals since Budget 2010 total $464,000, representing a return to the Crown of residual capital appropriated for legislative projects. |
| Surplus to be Retained (Deficit Incurred) | - | - | |
| Other Movements | - | - | |
Closing Balance |
265,427 | 264,963 |
Information Supporting the Supplementary Estimates Vote Revenue#
MINISTER(S) RESPONSIBLE FOR APPROPRIATIONS: Minister of Revenue (M57)
ADMINISTERING DEPARTMENT: Inland Revenue Department
MINISTER RESPONSIBLE FOR INLAND REVENUE DEPARTMENT: Minister of Revenue
Part 1 - Summary of the Vote#
Part 1.3 - Trends in the Vote
Summary of Financial Activity
| 2010/11 | |||||
|---|---|---|---|---|---|
| Supplementary Estimates | |||||
| Estimates $000 |
Departmental Transactions $000 |
Non-Departmental Transactions $000 |
Total Transactions $000 |
Total $000 |
|
Appropriations |
|||||
| Output Expenses | 648,263 | (5,346) | - | (5,346) | 642,917 |
| Benefits and Other Unrequited Expenses | 4,429,820 | N/A | (193,220) | (193,220) | 4,236,600 |
| Borrowing Expenses | 9,010 | - | - | - | 9,010 |
| Other Expenses | 1,654,650 | 4,380 | (40,650) | (36,270) | 1,618,380 |
| Capital Expenditure | 95,788 | (24,862) | - | (24,862) | 70,926 |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | N/A | - | - |
Total Appropriations |
6,837,531 | (25,828) | (233,870) | (259,698) | 6,577,833 |
Crown Revenue and Capital Receipts |
|||||
| Tax Revenue | 48,516,000 | N/A | (2,067,000) | (2,067,000) | 46,449,000 |
| Non-Tax Revenue | 1,295,000 | N/A | (104,000) | (104,000) | 1,191,000 |
| Capital Receipts | 825,000 | N/A | (30,500) | (30,500) | 794,500 |
Total Crown Revenue and Capital Receipts |
50,636,000 | N/A | (2,201,500) | (2,201,500) | 48,434,500 |
Part 2 - Details and Expected Performance for Output Expenses#
Part 2.1 - Departmental Output Expenses#
Management of Debt and Outstanding Returns (M57)
Scope of Appropriation
Taking action where returns are outstanding and where payments are overdue, including providing people with assistance on the actions they need to take to meet their obligations. This includes collection on behalf of other agencies and external parties.
Expenses and Revenue
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 99,138 | 2,997 | 102,135 |
| Revenue from Crown | 94,895 | 3,091 | 97,986 |
| Revenue from Other | 4,243 | (94) | 4,149 |
Reasons for Change in Appropriation
This appropriation increased by $2.997 million for 2010/11 as a result of:
- a fiscally neutral adjustment between departmental output expenses of $6 million
- a transfer of $439,000 from 2009/10 to 2010/11 for the operating pressures contingency
- a transfer of $214,000 from 2009/10 to 2010/11 for contract agreement settlement
- a forecast change related to the KiwiSaver employer contributions of ($94,000)
- a transfer of ($566,000) from 2010/11 to 2011/12 to fund the enterprise desktop project, and
- a return of funding to the Crown related to the Child Support reciprocal cases in Australia of ($2.996 million).
None of the above appropriation changes affect the output performance standards.
Policy Advice (M57)#
Scope of Appropriation#
Advising on all aspects of tax policy and social policy measures that interact with the tax system. Drafting tax legislation. Negotiating and maintaining New Zealand's network of double tax agreements with other countries. Forecasting tax revenues and providing ministerial services.
Expenses and Revenue#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 15,285 | (173) | 15,112 |
| Revenue from Crown | 15,117 | (162) | 14,955 |
| Revenue from Other | 168 | (11) | 157 |
Reasons for Change in Appropriation#
This appropriation decreased by ($173,000) for 2010/11 as a result of:
- a transfer of $75,000 from 2009/10 to 2010/11 for the operating pressures contingency
- a transfer of $29,000 from 2009/10 to 2010/11 for contract agreement settlement
- a forecast change related to the KiwiSaver employer contributions of ($11,000)
- a transfer of ($66,000) from 2010/11 to 2011/12 to fund the enterprise desktop project, and
- a fiscally neutral adjustment between departmental output expenses of ($200,000).
None of the above appropriation changes affect the output performance standards.
Services to Inform the Public About Entitlements and Meeting Obligations (M57)#
Scope of Appropriation#
Providing information and assistance to customers on the application of the law. Responding to customer enquiries about tax and social support programmes. Adjudication on behalf of the Commissioner on proposed taxpayer assessments. Providing binding rulings and other statements on the interpretation and application of the law administered by Inland Revenue.
Expenses and Revenue#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 245,530 | (3,760) | 241,770 |
| Revenue from Crown | 242,848 | (3,558) | 239,290 |
| Revenue from Other | 2,682 | (202) | 2,480 |
Reasons for Change in Appropriation#
This appropriation decreased by ($3.760 million) for 2010/11 as a result of:
- a transfer of $1.158 million from 2009/10 to 2010/11 for the operating pressures contingency
- a transfer of $600,000 from 2009/10 to 2010/11 for the student loans redesign initiative
- a transfer of $545,000 from 2009/10 to 2010/11 for contract agreement settlement
- a transfer of $300,000 from 2009/10 to 2010/11 for the simplifying customer interactions initiative
- a forecast change related to the KiwiSaver employer contributions of ($202,000)
- a transfer of ($750,000) from 2010/11 to 2011/12 for student loans redesign advertising
- a fiscally neutral transfer of ($1 million) to Vote Social Development to fund Inland Revenue's contribution to the service transformation business case in 2010/11
- a transfer of ($1.211) million from 2010/11 to 2011/12 to fund the enterprise desktop project, and
- a fiscally neutral adjustment between departmental output expenses of ($3.200 million).
None of the above appropriation changes affect the output performance standards.
Services to Process Obligations and Entitlements (M57)#
Scope of Appropriation#
Registering tax payers, making tax assessments, assessing child support liabilities including providing a readily accessible inexpensive process for reviewing assessments, receiving and making payments to customers, processing applications and payments for social support programmes, collection of ACC Earners' levies, supplying information to other government agencies and accounting and reporting the collection of Crown revenue.
Expenses and Revenue#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 114,664 | 3,024 | 117,688 |
| Revenue from Crown | 90,941 | 3,099 | 94,040 |
| Revenue from Other | 23,723 | (75) | 23,648 |
Reasons for Change in Appropriation#
This appropriation increased by $3.024 million for 2010/11 as a result of:
- a transfer of $1.100 million from 2009/10 to 2010/11 for a Crown systems project
- a fiscally neutral adjustment between departmental output expenses of $1.100 million
- a transfer of $552,000 from 2009/10 to 2010/11 for the operating pressures contingency
- a transfer of $400,000 from 2009/10 to 2010/11 for the student loans redesign initiative
- a transfer of $200,000 from 2009/10 to 2010/11 for the simplifying customer interactions initiative
- a transfer of $195,000 from 2009/10 to 2010/11 for contract agreement settlement
- a forecast change related to the KiwiSaver employer contributions of ($75,000), and
- a transfer of ($448,000) from 2010/11 to 2011/12 to fund the enterprise desktop project.
None of the above appropriation changes affect the output performance standards.
Taxpayer Audit (M57)#
Scope of Appropriation#
Identifying risks to revenue and designing and undertaking audit activities accordingly. Managing litigation of disputed tax cases.
Expenses and Revenue#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 173,646 | (7,434) | 166,212 |
| Revenue from Crown | 171,756 | (7,316) | 164,440 |
| Revenue from Other | 1,890 | (118) | 1,772 |
Reasons for Change in Appropriation#
This appropriation decreased by ($7.434 million) for 2010/11 as a result of:
- a transfer of $776,000 from 2009/10 to 2010/11 for the operating pressures contingency
- a transfer of $317,000 from 2009/10 to 2010/11 for contract agreement settlement
- a forecast change related to the KiwiSaver employer contributions of ($118,000)
- a transfer of ($709,000) from 2010/11 to 2011/12 to fund the enterprise desktop project
- a fiscally neutral transfer of ($2 million) to Vote Social Development to fund Inland Revenue's contribution to the service transformation business case in 2010/11
- a transfer of ($2 million) from 2010/11 to 2011/12 to fund litigation expenditure, and
- a fiscally neutral adjustment between departmental output expenses of ($3.700 million).
None of the above appropriation changes affect the output performance standards.
Part 3 - Details for Benefits and Other Unrequited Expenses#
Part 3.2 - Non-Departmental Benefits and Other Unrequited Expenses#
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).
Expenses
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 225,000 | (12,000) | 213,000 |
Reasons for Change in Appropriation
The reduction in the 2010/11 Supplementary Estimates reflects lower than expected income growth. With smaller collections from non-custodial parents, payments to custodial parents have, in turn, been smaller than forecast.
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).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 3,100 | (300) | 2,800 |
Reasons for Change in Appropriation#
The child tax credit has not been available to new recipients since April 2006. Existing recipients may continue to receive the credit until they change to the in-work tax credit or otherwise lose eligibility. The appropriation is declining slightly faster than forecast in Budget 2010.
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).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 2,229,000 | (24,600) | 2,204,400 |
Reasons for Change in Appropriation#
The decline in the 2010/11 Supplementary Estimates reflects slightly smaller entitlements than forecast in Budget 2010. Average payments per recipient decline over time through abatement as incomes grow.
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).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 597,080 | (5,080) | 592,000 |
Reasons for Change in Appropriation#
The small decline in the 2010/11 Supplementary Estimates reflects slightly smaller entitlements than forecast in Budget 2010. Average payments per recipient decline over time through abatement as incomes grow.
KiwiSaver: Employer Tax Credit (M57)#
Scope of Appropriation#
To enable the payment of a tax credit to employers in respect of their contributions to KiwiSaver as set out in the Income Tax Act 2007.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 0 | 198 | 198 |
Reasons for Change in Appropriation#
The KiwiSaver: Employer Tax Credit appropriation ceased from April 2009 and consequently no expense was included in Budget 2010. However, residual claims persist, and so from November 2010, this appropriation has been combined with the KiwiSaver: Member Tax Credit appropriation into the new KiwiSaver: Tax Credits appropriation. This appropriation of $198,000 reflects October 2010 year to date actuals.
KiwiSaver: Interest (M57)#
Scope of Appropriation#
To enable the payment of interest on KiwiSaver contributions as set out in the KiwiSaver Act 2006.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 6,000 | (1,000) | 5,000 |
Reasons for Change in Appropriation#
KiwiSaver interest is payable on member contributions which have not yet been forwarded to scheme providers. This most commonly occurs with new membership on the three-month holding period, or when existing members first start making member contributions via employers. The decrease in the 2010/11 Supplementary Estimates reflects lower than expected interest payable in the period.
KiwiSaver: Kickstart Payment (M57)#
Scope of Appropriation#
To enable the one-off payment made on opening a KiwiSaver account for members who meet the required eligibility criteria as set in the KiwiSaver Act 2006.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 293,000 | 9,000 | 302,000 |
Reasons for Change in Appropriation#
The kickstart is a one-off payment to new members on first joining the scheme. Growth in new membership in the 2010/11 year has been higher than forecast in Budget 2010.
KiwiSaver: Member Tax Credit (M57)#
Scope of Appropriation#
To enable the payment of a tax credit to KiwiSaver members as set out in the Income Tax Act 2007.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 880,000 | (616,308) | 263,692 |
Reasons for Change in Appropriation#
From November 2010, this appropriation has been combined with the KiwiSaver: Employer Tax Credit appropriation into the new KiwiSaver: Tax Credits appropriation. The reduction in the Supplementary Estimate reflects this change in classification. The appropriation of $263.692 million reflects October 2010 year to date actuals.
KiwiSaver: Tax Credits (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.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 468,110 | 468,110 |
Reasons for Change in Appropriation#
The KiwiSaver: Tax Credits appropriation commenced in November 2010, combining the KiwiSaver: Member Tax Credit appropriation and the KiwiSaver: Employer Tax Credit appropriation. The appropriation of $468.110 million reflects member tax credits for the October to June period plus any residual employer tax credits which may arise. Combined with the KiwiSaver: Member Tax Credit appropriation, the total appropriation has declined since the 2010 Estimates.
The member tax credit is paid annually depending on the level of member contributions made to the scheme. Contributions have been lower than forecast in Budget 2010, both through a smaller than expected proportion of contributing members, and a lower average contribution rate. These smaller contributions result in a smaller appropriation for KiwiSaver: Member Tax Credit (now KiwiSaver: Tax Credits).
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).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 10,000 | (400) | 9,600 |
Reasons for Change in Appropriation#
Entitlement to this appropriation rapidly abates with income growth. The small decrease in the 2010/11 Supplementary Estimates reflects higher forecast attrition of recipients.
Paid Parental Leave Payments PLA (M57)#
Scope of Appropriation#
Paid Parental Leave Payments made to parents eligible under the Parental Leave and Employment Protection Act 1987.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 162,800 | (8,200) | 154,600 |
Reasons for Change in Appropriation#
Paid parental leave payments are directly linked to wages. Wage growth in 2011 was lower than forecast at Budget 2010. The decrease in the 2010/11 Supplementary Estimates reflects this smaller wage profile and also a decrease in the number of recipients.
Parental Tax Credit PLA (M57)#
Scope of Appropriation#
To enable payment of additional financial support to be made to working families for the eight week period following the birth of a child (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 19,840 | (640) | 19,200 |
Reasons for Change in Appropriation#
The decrease in the 2010/11 Supplementary Estimates reflects minor forecast changes.
Payroll Subsidy (M57)#
Scope of Appropriation#
To enable the payment of a subsidy to a payroll agent undertaking employers' payroll-related tax compliance activities on their behalf.
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 4,000 | (2,000) | 2,000 |
Reasons for Change in Appropriation#
The decrease in appropriation largely reflects a more gradual uptake of payroll agents' services than previously expected.
Part 4 - Details for Borrowing Expenses#
Part 4.2 - Non-Departmental Borrowing Expenses#
Adverse Event Interest PLA (M57)
Scope of Appropriation
This appropriation is limited to interest on Adverse Event Income Equalisation Reserve accounts held by taxpayers in the farming and agriculture business (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Expenses
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 10 | - | 10 |
Environmental Restoration Account Interest PLA (M57)#
Scope of Appropriation#
This appropriation is limited to interest on Environmental Restoration accounts (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 2,000 | - | 2,000 |
Income Equalisation Interest PLA (M57)#
Scope of Appropriation#
This appropriation is limited to interest on Income Equalisation Reserve Scheme accounts held by taxpayers in the farming, fishing or forestry industries (expenses incurred pursuant to section 185 of the Tax Administration Act 1994).
Expenses#
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 7,000 | - | 7,000 |
Part 5 - Details and Expected Results for Other Expenses#
Part 5.1 - Departmental Other Expenses#
Recovery from February 2011 Christchurch Earthquake (M57)
Scope of Appropriation
This appropriation is limited to writing off, or making good damage to, departmental assets, maintaining output delivery and re-establishing departmental operations in Christchurch following the 22 February 2011 earthquake.
Expenses
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | - | 4,380 | 4,380 |
| Revenue from Crown | - | - | - |
| Revenue from Other | - | 4,380 | 4,380 |
Reasons for Change in Appropriation
This is a newly established appropriation, following the 22 February 2011 Christchurch earthquake.
Part 5.2 - Non-Departmental Other Expenses#
Bad Debt Write-Offs (M57)#
Scope of Appropriation
This appropriation is limited to bad debt write-offs for Crown debt administered by Inland Revenue.
Expenses
| 2010/11 | |||
|---|---|---|---|
| Estimates $000 |
Supplementary Estimates $000 |
Total $000 |
|
| Total Appropriation | 931,000 | (112,000) | 819,000 |
Reasons for Change in Appropriation
The reduction in appropriation reflects the impact of proactive debt compliance initiatives funded in Budget 2010, in addition, to a reduction in forecast growth in write-offs. Whilst growth has still been forecast, the rate of growth is lower than previously forecast.