For many New Zealand salary and wage earners, Inland Revenue works out the end-of-year tax position automatically. The result is an income tax assessment showing whether you have paid the right amount, are due a refund, or have tax to pay.
Tax outcomes depend on your full circumstances and current Inland Revenue rules. Review your assessment carefully and seek advice if anything is missing, unusual, or unclear.
What is an income tax assessment?
Employers, banks and other income providers regularly send payment and tax information to Inland Revenue. When your income is limited to sources that are taxed before you receive them, Inland Revenue may already hold enough information to calculate your position without requiring you to prepare an IR3 return.
The assessment brings together the income Inland Revenue knows about and the tax already deducted. It then shows one of three outcomes: a refund, a bill, or no balance.
Who usually receives one?
An automatically issued assessment is generally intended for people whose income information is already reported to Inland Revenue. This can include:
- salary and wages taxed through PAYE
- New Zealand Superannuation or taxable benefits
- schedular payments for contractors
- bank interest, dividends, PIE or KiwiSaver income already reported by the payer
- some employee share scheme and Māori authority income.
If you earn income that is not fully taxed before payment—such as self-employed, business, rental or certain overseas income—you may need to file an IR3 instead.
How the process works
- Income information is collected. Employers, banks and investment providers report the income paid to you and the tax deducted.
- Your position is calculated. Inland Revenue compares your taxable income with the tax already paid during the year.
- The assessment is issued. You can usually find it in myIR; people without myIR may receive it by post.
- You review the details. You must tell Inland Revenue if income, expenses, credits, family details or other information is incomplete or incorrect.
What should you check?
An assessment is based on the information Inland Revenue has received, so it is still important to review it. Check:
- your salary, wages and schedular income
- interest, dividend and investment income
- your bank account details for any refund
- eligible expenses or credits that may not have been included
- any other income, including rental, business or overseas income
- Working for Families information where relevant.
If income is absent or a credit has been applied incorrectly, the assessment may still need to be changed.
Refunds, tax bills and changes
If you are due a refund
Inland Revenue generally pays the refund to the bank account registered in myIR. Confirm those details are current before relying on the payment.
If you have tax to pay
Your assessment will state the balance and due date. Do not ignore a bill: late payment can result in penalties and interest. Contact Inland Revenue or your accountant early if you believe it is wrong or you cannot pay on time.
If information is wrong or missing
Update the assessment through myIR or provide the information Inland Revenue requests. Where your circumstances require an IR3, file the correct return rather than relying on the automatic calculation.
When should it arrive?
Inland Revenue currently advises that automatically issued assessments are generally sent from the last weekend in May through to the end of July. They are processed in batches, so another person receiving a refund earlier does not necessarily mean yours is delayed.
When professional help may be useful
Consider having your position checked if you have multiple income sources, contracting or business income, a rental property, overseas investments, significant expenses, a recent change in circumstances, or an assessment that does not match your records.
Ask us to review your assessment ↗
Official sources
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