7000 pensioners overcharged in another Inland Revenue error
Almost 7000 pensioners have been affected by another Inland Revenue error.
Last week, RNZ reported that 4500 people had overpaid tax after their imputation credits had been incorrectly recorded in their prep-populated tax returns.
Others got in touch and said they had also experienced a problem, this time with the way that NZ Super was recorded for ACC purposes.
One man said he had been charged $301.68 in ACC earner levy for $18,854.98 of gross income from NZ Super that should not have attracted a levy at all.
He said he was not able to control this when he completed his return and did not realise the error until the process was complete.
He said he did not think a lot more about it but when he saw RNZ's reporting of the other error, he realised that there had been at least two this year.
"This really starts to suggest a deficiency in change control of IRD systems."
Another couple said they wanted assurance that Inland Revenue had taken steps to stop it happening again.
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Inland Revenue said 6778 people were affected.
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"There was an issue identified earlier this year where we were not populating the 'earnings not liable' figure correctly for some customers. We fixed those returns for the customers in July 2025."
Chartered Accountants Australia New Zealand tax leader John Cuthbertson said ACC was not paid on NZ Super because it was not liable income.
"However, if you're working and receiving NZ Super, your earnings from that work do attract levies."
"The advancements in digitalisation and MyIR have been quite incredible, except when it goes wrong like this. You shouldn't need a Chartered Accountant to check prepopulated forms, but the average person might not know that super income does not attract ACC levies. We used to say 'google it' but many taxpayers are now using AI to do a basic check of their tax returns, asking simple questions like 'Should I pay 'x' levy on 'y' income?"
Angus Ogilvie, managing director of Generate Accounting Group, said it was concerning that issues seemed to be leading to erroneous data being prepopulated into Inland Revenue's system.
"The new software employed was a very costly and complex project. However, taxpayers should expect that there is a high level of diligence applied to get their tax obligations right. Let's hope that the department is devoting urgent resource to correct these issues".
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Even Australians get it - so why not Kiwis???
“Ten years ago, if a heatwave as intense as last week’s record-breaker had hit the east coast, Australia’s power supply may well have buckled. But this time, the system largely operated as we needed, despite some outages.
On Australia’s main grid last quarter, renewables and energy storage contributed more than 50% of supplied electricity for the first time, while wholesale power prices were more than 40% lower than a year earlier.
[…] shifting demand from gas and coal for power and petrol for cars is likely to deliver significantly lower energy bills for households.
Last quarter, wind generation was up almost 30%, grid solar 15% and grid-scale batteries almost tripled their output. Gas generation fell 27% to its lowest level for a quarter century, while coal fell 4.6% to its lowest quarterly level ever.
Gas has long been the most expensive way to produce power. Gas peaking plants tend to fire up only when supply struggles to meet demand and power prices soar. Less demand for gas has flowed through to lower wholesale prices.”
Full article: www.theguardian.com...
If even Australians see the benefit of solar - then why is NZ actively boycotting solar uptake? The increased line rental for electricity was done to make solar less competitive and prevent cost per kWh to rise even more than it did - and electricity costs are expected to rise even more. Especially as National favours gas - which is the most expensive form of generating electricity. Which in turn will accelerate Climate Change, as if New Zealand didn’t have enough problems with droughts, floods, slips, etc. already.
Time to Tickle Your Thinker 🧠
If a zookeeper had 100 pairs of animals in her zoo, and two pairs of babies are born for each one of the original animals, then (sadly) 23 animals don’t survive, how many animals do you have left in total?
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