Bold claim: thousands of pensioners were hit again by an Inland Revenue mistake, highlighting ongoing frustrations with tax systems that should serve everyday people. But here’s where it gets controversial: the scope and impact of these errors reveal deeper questions about how well digital tax tools protect taxpayers, especially those relying on NZ Super.
A recent RNZ report confirms that nearly 7,000 pensioners were affected by another IRD error. The earlier week’s coverage noted that about 4,500 people had overpaid tax because their imputation credits were incorrectly recorded in pre-populated tax returns. Since then, more readers reached out with a separate problem: how NZ Super earnings were recorded for ACC purposes.
One individual was charged $301.68 in ACC earner levy based on $18,854.98 of NZ Super income, which should not have been subject to any levy. He couldn’t fix this while completing his return and only realized the mistake after the process finished. He hadn’t given it much thought at first, but RNZ’s coverage of the other error prompted him to recognize that there had been at least two issues within the year. “This really starts to suggest a deficiency in change control of IRD systems.”
Another couple sought reassurance that Inland Revenue had implemented concrete steps to prevent a recurrence. The IRD disclosed that 6,778 people were affected. They explained that an issue identified earlier in the year involved incorrect population of the “earnings not liable” figure for some customers, and those returns were corrected in July 2025.
Industry voices weigh in. John Cuthbertson, tax leader at Chartered Accountants Australia New Zealand, noted that ACC isn’t paid on NZ Super because it’s not liable income. However, earnings from work while receiving NZ Super can attract levies. He added that while digital advances and MyIR are impressive, mishaps like this remind us that the average person may not realize that NZ Super income doesn’t incur ACC levies. He observed that many taxpayers now use AI to perform basic checks on their tax returns, asking practical questions such as whether a levy applies to a given income.
Angus Ogilvie, managing director of Generate Accounting Group, expressed concern that erroneous data is being prepopulated into IRD systems. He acknowledged that the new software project was costly and complex, but emphasized that taxpayers expect a high standard of accuracy in their tax obligations. He urged the department to allocate urgent resources to fix these issues.
As this story unfolds, it raises important questions about how well we audit and validate automated tax processes, especially for pensioners and those with NZ Super. It also invites a broader conversation about transparency, accountability, and how taxpayers can best protect themselves when digital tax tools misfire. If you have experiences with similar errors or thoughts on how to strengthen these systems, share your perspective in the comments.
