IRD transformation programme on time and under budget

Inland Revenue transformation programme remains on time and under budget

15 July 2016

The BusinessDesk story run on nbr.co.nz yesterday on the cost of Inland Revenue’s business transformation project risks giving the impression the programme is running over budget.

In fact the project is continuing to track on plan and is currently under spending against the budget approved by government.

The estimated total cost of the business transformation programme over 10 years remains between $1.6 and $1.8 billion excluding capital charges, depreciation and adjustments for inflation.

Yesterday’s BusinessDesk story adds on the costs of those three accounting entries, which have always been indicated in any reports to government.

The government’s funding for the programme is around $1 billion and the balance is being funded by IR from its existing reserves and standard operating costs.

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