Inland Revenue Budget Cuts: What They Could Mean

What cuts is Inland Revenue planning for?

Inland Revenue has told staff it needs to plan for a smaller budget over several years. The chief executive’s internal message, as reported by the New Zealand Herald and ZB, set out a goal of operating with a baseline budget 20% lower in 2028/29 ¹².

The reports also describe reductions of 2% this year, then 5% in 2027/28 and 2028/29 ¹². These are budget targets, not a stated percentage reduction in staff. The sources do not explain how the targets combine to produce the 2028/29 figure.

Does this mean Inland Revenue staff will lose their jobs?

It means job reductions are being considered, not that a specific number of positions has been confirmed. Staff were advised that workforce changes are among the options for meeting the required savings, alongside other cost reductions ¹².

The Public Service Association said members were concerned about potential job losses and the ability to meet public expectations with fewer resources ¹². That is the union’s view; the reporting does not establish that particular jobs will be lost.

Could Inland Revenue services change?

Possibly. The reports say some activities could be discontinued or carried out more efficiently as the agency responds to its budget requirement ¹². They do not say which activities might change.

That means people who use Inland Revenue services cannot yet tell from these reports whether access, processing or other parts of service will be affected. The budget target alone does not specify what work the agency will protect or alter.

Why has Inland Revenue been asked to save money?

The reports attribute the savings requirement to Budget 2026, which asked government agencies to find savings over the coming years ¹². Inland Revenue is one of the agencies given reductions to meet.

The Public Service Association has called for a public-good assessment before major restructures. Its representatives have also questioned how the agency can meet expectations with reduced resources ¹². These are the union’s concerns, not a published assessment of service outcomes.

What is still unknown?

The available reports do not state how many jobs could go, which roles or locations might be affected, or when any staffing decisions will be made ¹². They also do not identify specific services or activities that may stop.

For now, the reported information describes a savings requirement and options under consideration rather than a complete workforce or service plan. The effect on staff and the public will depend on decisions not detailed in these sources.