Hundreds of jobs could be at risk at Inland Revenue as the agency prepares to operate with a baseline budget around 20 percent lower by 2028/29, according to the Public Service Association.
An internal message from Inland Revenue Commissioner Peter Mersi, cited by the PSA, told staff that government savings requirements and rising costs meant the department would need to consider reducing workforce numbers alongside other spending.
The PSA says Inland Revenue employs more than 4,000 people and warns the uncertainty over future staffing is already putting pressure on workers. National Secretary Duane Leo says remaining employees could also face increased workloads if positions are removed.
According to the union, Inland Revenue is required to reduce its baseline budget by 2 percent this financial year, followed by further reductions of 5 percent in 2027/28 and another 5 percent in 2028/29. Combined with rising costs, IRD management says that translates into operating within a baseline budget 20 percent lower in 2028/29. Proposals are expected to be presented to the responsible minister by the end of the year.
The department has indicated some activities may stop while others could be delivered more efficiently, and overtime currently used to manage workloads could also be reduced. The PSA has raised concerns that greater use of artificial intelligence could form part of those efficiencies, although the source does not confirm IRD has decided to replace jobs with AI.
The union argues further reductions could make it harder for Inland Revenue to meet expectations around tax collection, compliance and implementation of government tax and social policies. The final number of positions potentially affected has not yet been confirmed.
#InlandRevenue #IRD #PublicService #PSA #Jobs #JobCuts #GovernmentSpending #BudgetCuts #Tax #NZEconomy #Workers #Employment #PublicSector #Election2026 #Aotearoa #NZNews #MaoriNews #WaateaNews
