Automatic tax refunds

We're looking at making tax more straightforward. See what the proposed changes could mean for you.

Proposed

Automatic tax refunds 

We’re looking at making the tax refunds process more straightforward. Here’s an example of how that could work for Sophie.

What's proposed

Sophie is currently a busy working mum. She is pregnant with her second child and will take extended parental leave for the second time. The last time she was off work was when she had her first child. She was told by her friend that she may be due a tax refund as she had only worked part of the year. Sophie completed the tax refund process through an independent tax refund company, Welcome$.co.nz and received her refund minus the fee charged by the company.

Sophie can choose to continue to use Welcome$, her independent tax refund company, but doesn’t have to. Provided Inland Revenue has her correct contact details and bank account, she won’t have to do anything and any refund will be paid straight into her bank account from June 2019. 

Sophie can keep her contact details and bank account up-to-date by signing up for myIR or by contacting Inland Revenue directly.

Transcript   

Now

What happens now

Sophie is currently a busy working mum. She is pregnant with her second child and will take extended parental leave for the second time. The last time she was off work was when she had her first child. She was told by her friend that she may be due a tax refund as she had only worked part of the year. Sophie completed the tax refund process through an independent tax refund company, Welcome$.co.nz and received her refund minus the fee charged by the company.

For Sophie to get her tax refund this year she has to confirm a number of details so decides to continue to use Welcome$, her tax refund company. Welcome$ checks Sophie’s details with Inland Revenue on her behalf and finds she is due another refund. They process her refund and pay it to her after deducting their fee again.