The IRD’s current IT system was developed back in
the 1990s, before Microsoft Windows and smart
phones. Over time the system has been modified to
cater for various Government initiatives such as
student loans and working for families. It is generally
accepted that the system is now unable to readily
cope with further change.
An overhaul of the system is planned and is
expected to cost $1.5b over a 10 year period.
Arguably the upgrade is well overdue with recently
released IRD papers revealing that half of the IRD’s
data entry staff spend their time correcting data
entries in the system.
The upgrade appears to be in motion with a recent
speech by the Minister of Revenue setting out the
IRD’s approach to the transformation. Of interest is
that the overhaul may involve more than just the IT
system. The Minister has indicated that NZ’s tax
administration process is also in need of change by
introducing new processes to meet the changing
needs of businesses and individuals.
A sign of the changing times can be seen in the form
of a recent competition where the IRD asked for
input in the design of an IRD App. The competition
aimed to develop an App that makes interactions
with the IRD easier, improves information sharing
and allows for greater self-management by
Hopefully a more efficient, modern system for both
the IRD and its customers is on the horizon and we
don’t end up with Novopay v2.