The income tax debt pilot has been running for just over two months. The deadline to join is 30 September 2026. And the conversations we’ve been having with accountants up and down the country make it clear: awareness is growing, but a lot of clients still haven’t acted.
TMNZ was on the ground at all 13 CA ANZ Tax Roadshow events nationwide last month. In every room from Whangarei to Invercargill tax debt was one of the most talked-about topics. Not as a compliance issue, but as something accounting firms are actively managing for clients right now.
That’s not surprising. New Zealand’s overdue tax and entitlement debt has reached approximately $9.4 billion at 31 March 2026 — a 62% increase over three years. As TMNZ Head of Advisor Relationships, Kathleen Payne told Roadshow attendees:
“The businesses we speak to want to be compliant. But they’ve fallen behind with payments and haven’t understood the help available to them.”
The Roadshows reinforced something TMNZ has seen since the pilot opened in April: businesses that act early have options. Those who leave it risk a much harder conversation, with Inland Revenue, not with us.
Where things stand right now
The pilot commenced on 1 April 2026. Businesses have until 30 September 2026 to enter into a payment arrangement. The debt then needs to be fully cleared by 30 September 2027.
The pilot exists precisely because the government recognises that many of these businesses aren’t avoiding their tax debt. They’re otherwise compliant operations carrying debt they accrued during a genuinely difficult period. This is a structured, legislated pathway to resolve it, and the window is time-limited.
Budget 2026, delivered on 28 May, confirmed that Inland Revenue’s enforcement focus isn’t easing. A further $15 million per year has been allocated specifically to debt compliance, building on the unpaid tax debt campaigns that have been running since 2024. As Kathleen Payne summed up at her Roadshow sessions:
“We’re seeing and hearing Inland Revenue is ramping up enforcement activity again in multiple ways to target those with overdue tax.”
Liquidations are trending higher, particularly in construction and hospitality. Inland Revenue initiated 605 company liquidations, 118 individual bankruptcies and 43 prosecutions in the year to March 2026, showing their determination to act firmly against those who will not address their tax debt.
What accountants are asking us
Since April, the questions we’re fielding most from accounting firms cluster around a few themes:
Yes. Clients who already have an instalment arrangement with Inland Revenue for 2023 or 2024 income tax debt can still join the pilot, and most will save money by doing so, since our interest rates are significantly lower than Inland Revenue’s and late payment penalties are eliminated entirely.
The standard eligibility criteria require no overdue GST or PAYE. However, if those arrears are already under a payment plan with Inland Revenue, the Commissioner has discretion to allow entry into the programme. We cover this in detail on our Tax Debt page.
On a $20,000 debt split evenly across the 2023 and 2024 years, settling through TMNZ costs at least $1,876 less than paying Inland Revenue directly. That’s a 31% saving. The sooner the arrangement is set up, the sooner Inland Revenue interest stops accruing.
You apply on behalf of your client. TMNZ submits to Inland Revenue, and once eligibility is confirmed, we send you a tax pooling arrangement with the cost to settle and payment instructions. Once the arrangement is in place, Inland Revenue tags the account, no further debt follow-up occurs for those years. TMNZ manages the monthly statements and follow-ups. Your client doesn’t need to deal with Inland Revenue directly.
A few months in, a few months to go
The conversations at the Roadshows were a useful signal. Accountants who attended are engaging. The firms who weren’t in the room may not yet know the window is closing.
If you have clients carrying 2023 or 2024 income tax debt, the time to move is now, not in September. Every month of delay is another month of interest accruing.