Inland Revenue collected $77.9 billion worth of tax revenue in the 2019 year, but experts estimate that it is missing out on at least $1b more as the country's self-employed are under-reporting their income by about 20 per cent.
Inland Revenue is "five years late" to tackle the mammoth issue of the country's estimated billion-dollar "hidden economy", a tax expert says. A Victoria University and IRD study released in April estimated that New Zealand is missing out on about $800m in its annual tax take. Chartered Accountants Australia and New Zealand believe this is likely to be in excess of $1b each year. The tax department yesterday announced it had carried out a series of unannounced raids on hospitality businesses in the Queenstown and Central Otago region - new measures in a bid to curb unreported cash sales and staff being paid cash under the table. Using court-issued search warrants, IRD raided three hospitality businesses and made unannounced visits to six others. It seized wage records, computers and other business records, along with information on employer-provided accommodation, working for Families Tax credits and payroll matters. It found that businesses were paying staff in cash without PAYE being deducted, and documents revealed some were making cash deposits into private bank accounts without being returned for GST or income tax. IRD says it would continue to use the strategy to catch operators failing to comply with tax law, but Terry Baucher, founder of Baucher Consulting, says IRD has in recent years took its "eye off the ball" as it became "too focused" on its business transformation programme rather than growing hidden economy. "The business transformation programme should have happened five years ago, at the very latest," Baucher told the Herald. "We don't know the size of the hidden economy and that's the point coming out ... my view is that this sector is bigger than people realise, much bigger. "Inland Revenue is now returning its focus on to this matter. With its new upgraded systems I think it has got better data matching abilities - they are now enhanced, so it can now go about this with a renewed figure." Baucher said New Zealand's GST system enabled it to pick up on under-the-table activity. "Because our GST is so comprehensive, I believe that policymakers, that means Inland Revenue, have been a little complacent about the extent of the cash economy." IRD estimates that approximately $256m worth of income was not reported in 2018 and 2019 - about $108.8m identified in 2019, and $148m in the 2018 year. According to it annual report, for every $1 spent on efforts to crack down on the hidden economy, IRD received about $6 in return revenue last year. "They targeted getting $4.59 [back] so they were 20 per cent above what they were expecting," said Baucher said. IRD research has found that the proportion of people participating in cash jobs was beginning to decline. In 2011, 34 per cent of people said they participated in cash jobs. This is now down to 27 per cent, while just 16 per cent of people said they were now likely to ask for a cash price discount compared with 27 per cent previously. About 49 per cent of people said cash jobs were acceptable, down from 72 per cent from 2011. Baucher said IRD's unannounced visits and raids to its assessed "high-risk businesses" would have a positive impact on tackling New Zealand's hidden economy. He said New Zealand could also follow Sweden by implementing a surcharge or similar for cash payments. Inland Revenue customer segment leader for micro, Richard Philp, said there were 90 tax evasion prosecution cases before the court, and that IRD was making progress on the issue. "The construction industry and the hospitality industry are two industries that typically represent a higher level of cash transactions, and particularly with the hospitality industry, there are small amounts one-by-one but collectively they can build up to be substantial amounts of cash suppressed and not declared annual GST returns," Philp said. The IRD first began focusing on a crackdown on cash payments in the hospitality industry about three years ago. Unannounced visits to businesses, however, are a new strategy the tax department is undertaking to clawback tax owed. "Cash jobs undercut legitimate operators so our goal is not to prosecute everyone but to have enough examples and representation around our enforcement work that helps guide people to do the right thing."
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Have you got New Zealand's best shed? Show us and win!
Once again, Resene and NZ Gardener are on the hunt for New Zealand’s best shed! Send in the photos and the stories behind your man caves, she sheds, clever upcycled spaces, potty potting sheds and colourful chicken coops. The Resene Shed of the Year 2026 winner receives $1000 Resene ColorShop voucher, a $908 large Vegepod Starter Pack and a one-year subscription to NZ Gardener. To enter, tell us in writing (no more than 500 words) why your garden shed is New Zealand’s best, and send up to five high-quality photos by email to mailbox@nzgardener.co.nz. Entries close February 23, 2026.
Poll: 🤖 What skills do you think give a CV the ultimate edge in a robot-filled workplace?
The Reserve Bank has shared some pretty blunt advice: there’s no such thing as a “safe” job anymore 🛟😑
Robots are stepping into repetitive roles in factories, plants and warehouses. AI is taking care of the admin tasks that once filled many mid-level office jobs.
We want to know: As the world evolves, what skills do you think give a CV the ultimate edge in a robot-filled workplace?
Want to read more? The Press has you covered!
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52% Human-centred experience and communication
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15.3% Critical thinking
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29.8% Resilience and adaptability
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2.9% Other - I will share below!
The Gospel’s Relevance Today**
The Gospel, meaning ‘good news’, is the cornerstone of the message contained in the Bible’s first four books—Matthew, Mark, Luke, and John. While these records were written approximately 2,000 years ago, a natural question arises: why is this Gospel still relevant and vital for us today? This analysis seeks to explore what the Bible itself defines as the Gospel and to understand its enduring significance.
**Defining the Gospel: Core Biblical References**
The Gospel is not a vague concept; Scripture provides clear descriptions of its content and focus.
* **The Gospel of the Kingdom:** In Matthew 4:23, as Jesus begins his ministry, he is described as “preaching the gospel of the kingdom.” This immediately establishes that the good news is centrally about a kingdom—the Kingdom of God. His accompanying miracles served to validate the authority of this message.
* **The Gospel of Jesus Christ:** Mark 1:1 opens with, “The beginning of the gospel of Jesus Christ, the Son of God.” Here, “Christ” is a title meaning ‘anointed one’. Thus, the good news is intrinsically about Jesus: his identity as the Anointed One and his unique status as the Son of God.
* **The Gospel of God’s Grace:** In Acts 20:24, the Apostle Paul speaks of his mission to “testify the gospel of the grace of God.” Grace signifies an undeserved gift. This reveals that the Gospel involves a gift from God, offered not because it is merited, but out of His benevolence.
* **The Gospel of Salvation and Peace:** Romans 1:16 declares the Gospel is “the power of God to salvation for everyone who believes,” breaking down barriers between Jew and Gentile (Greek). Furthermore, Romans 10:15 calls it the “gospel of peace,” pointing to a future state of peace brought about by this message.
* **The Gospel Summarised:** 1 Corinthians 15:1-4 provides a foundational summary. Paul reminds believers of the gospel he preached, “by which also you are saved.” He then states its core historical facts: “that Christ died for our sins according to the Scriptures, and that He was buried, and that He rose again the third day according to the Scriptures.” The Gospel is therefore rooted in the sacrificial death and resurrection of Jesus.
In synthesis, the Gospel is the good news of **salvation and future peace in the Kingdom of God**, made possible by **the grace of God** and **the obedient sacrifice of His Son, Jesus Christ**, and offered to all who believe.
**Old Testament Foundations: The Gospel Preached to Abraham**
A crucial question is whether the Gospel is confined to the New Testament. Scripture shows its foundations were laid much earlier. Galatians 3:8 states explicitly that “the Scripture, foreseeing that God would justify the Gentiles by faith, preached the gospel to Abraham beforehand, saying, ‘In you all the nations shall be blessed.’”
This reference points back to Genesis 12:1-3, where God made profound promises to Abraham: to make him a great nation, to bless those who blessed him, and that “in you all the families of the earth shall be blessed.” These promises—later reaffirmed to Isaac and Jacob—form the bedrock of the Gospel hope. The good news of salvation through Christ is the fulfillment of how **all nations** would be blessed through Abraham’s “seed.”
**The Gospel’s Personal Relevance: Good News for You Today**
How does this ancient message become “good news for you” today? The application is clearly outlined in Galatians 3.
* **Access through Faith in Christ:** Galatians 3:26 declares, “For you are all sons of God through faith in Christ Jesus.” The promise made to Abraham is now extended to anyone with faith in Jesus.
* **The Role of Baptism:** Verse 27 explains, “For as many of you as were baptized into Christ have put on Christ.” Baptism is the God-appointed act of faith that identifies a believer with Christ’s death and resurrection.
* **Unity and Inheritance:** Verses 28-29 reveal the glorious outcome: “There is neither Jew nor Greek, there is neither slave nor free, there is neither male nor female; for you are all one in Christ Jesus. And if you are Christ’s, then you are Abraham’s seed, and heirs according to the promise.” Through the Gospel, all barriers are removed; believers become spiritual descendants of Abraham and heirs to the promises of the Kingdom.
This Gospel was once a mystery hidden in God’s purpose (Ephesians 3:3-9). Now, it has been revealed: the unsearchable riches of Christ, offering salvation to all who heed the call, believe the message, and are baptised into him.
**Conclusion: An Enduring and Open Invitation**
The Gospel is far more than a historical account; it is the living, powerful good news of God’s plan for salvation. It is rooted in promises to Abraham, accomplished through the death and resurrection of Jesus Christ, and open to all people without distinction. It offers a tangible hope—the hope of resurrection, peace, and an inheritance in the coming Kingdom of God. This is why the Gospel remains profoundly relevant. It is an invitation to listen, believe, and stand firm in this hope, linking our lives today to the eternal purpose of God.
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