Source: Public Service Association Te Pūkenga Here Tikanga Mahi
Government mandated funding cuts that will see Inland Revenue’s budget slashed by 20% over three years leaves an axe hovering over the jobs of hundreds of workers, the PSA says.
An intranet message to Inland Revenue staff from Commissioner Peter Mersi said that the cumulative savings required by the Government from 2026/27 to 2028/29 and rising costs means, “we will need to operate within a 20% reduction to our baseline budget in 2028/29”.
“This means that to deliver the level of savings required, we will need to consider reductions in both workforce numbers, alongside other costs,” the message says.
These savings cannot be made without reducing the workforce, the message says.
The Government is requiring Inland Revenue to cut its baseline budget by 2% this year, an additional 5% in 2027/28 and another 5% in 2028/29. Inland Revenue leadership will be putting proposals for cutting its budget to its Minister by the end of the year.
Public Service Association Te Pūkenga Here Tikanga Mahi National Secretary, Duane Leo, says sending workers a signal that their jobs may be cut in the future without providing any details puts a massive strain on them.
“It means Inland Revenue’s more than 4000 staff are now all working under threat of losing their jobs and facing the prospect of struggling to keep up with the mortgage and put food on the table in the near future.
“The workers that remain will face increased stress of having to pick up even more work, while Inland Revenue has signalled that it will also reduce overtime, which it is currently using to manage its workloads,” Leo says.
“Inland Revenue staff already work incredibly hard to deliver on Government priorities. Whether it’s implementing tax and social policy changes, delivering new Government initiatives, or meeting increasing expectations around compliance and revenue collection, there is constant pressure to do more,” Leo says.
“Against that backdrop, the prospect of further budget reductions and potential job losses is creating significant concern for members. Many are questioning how Inland Revenue can continue to meet increasing expectations while reducing both funding and staffing levels, Leo said.
“The workers at Inland Revenue aren’t just numbers to be managed on a spreadsheet. They are real people. They deserve better than this Government’s reckless, slash and burn approach to cuts regardless of the consequences.
“Stopping this brutal approach that creates stress and uncertainty for hundreds of workers is why the PSA is calling for a mandatory public good test before government agencies can embark on major restructures and cut jobs,” Leo says.
“The email to staff said that to manage workload amongst a reduced number of staff, some activities would be stopped and others would be managed with more efficient ways of working.
The message’s reference to efficiencies will be read in the current climate by staff as incorporating artificial intelligence technology, Leo says.
“As we’ve said before, we don’t support using AI as an excuse for getting rid of workers rather than making them more productive.
“No country in the world has evidence that AI can replace public sector workers at the scale this Government is betting on. Countries like Singapore, which the Government often cites as a role model, use AI to improve public services not to reduce headcount,” Leo says.
“The PSA completely opposes any new cuts at Inland Revenue. New Zealanders deserve a public service that is funded enough to fulfil basic functions like tax collections.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, Health NZ and community groups.