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Inland Revenue Warns of Further Job Cuts Amid Government Budget Cuts
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Inland Revenue Faces Potential Further Job Cuts
Chief executive Peter Mersi informed Inland Revenue staff via an internal message that the agency must prepare for additional workforce reductions. The message explained that required savings across several financial years will force the department to operate within a 20 % reduction to its baseline budget for the 2028/29 fiscal year.
Government-Wide Budget Reduction Targets
Inland Revenue is among numerous public-sector agencies required to trim their baseline budgets. The government has set a 2 % reduction for the current year, followed by 5 % cuts in both the 2027/28 and 2028/29 financial years. These targets apply across multiple departments, creating a broad pressure to find savings through staffing and operational efficiencies.
Reactions from Management and Unions
The public-service union Public Service Association Te Pukenga Here Tikanga Mahi responded through its national secretary Duane Leo, who noted that the announcement places more than 4,000 Inland Revenue employees under the threat of job loss. The union’s statement underscores concerns about morale and the capacity of the tax authority to maintain service levels during the downsizing process.
Potential Implications for Tax Administration
If the projected workforce reductions are implemented, Inland Revenue may need to prioritize core tax-collection functions while scaling back or automating ancillary services. The agency’s plan to make certain activities “more efficient” could involve increased reliance on technology, but the extent of service changes remains unspecified. The combination of budgetary constraints and staffing uncertainty raises questions about the department’s ability to meet taxpayer obligations without disruption.