As of March 1st 2020, the Inland Revenue Department stopped accepting cheques. The decision was taken after Kiwibank, New Zealand Post, and the Accident Compensation Corporation took the same step.
According to spokesperson Sharon Thompson, the IRD is becoming more digital in its operations and a majority of its customers already opt for electronic tax payment.
“Cheques have been used over many years and we recognise this will be a significant change for some, and one that might take some adjustment. But it’s a change that has to be made,” Thompson added.
Since 2016, cheque use in New Zealand has declined by half. The IRD saw a 45% drop in the amount of cheques it received since the September 2019 announcement of the plan to stop accepting cheques.
The IRD has made an exception for those who aren’t able to adapt to the new process, but this is dealt with on an individual request basis. Until now, a total of 160 individual requests have been received – 22 were declined due to the availability of payment alternatives, 76 were accepted, and 62 others are still being reviewed.
Alternative methods of payment are easier and safer, Thompson said. The secure myIR account allows people to pay by debit or credit card. It’s also possible to set up a direct debit account with auto-payments.
Moreover, several banks offer flexible payment alternatives. For example, Westpac allows over the counter payments, even for non-customers.
Despite these available alternatives, the New Zealand National Party has argued that the move is unfair to older citizens and has started a petition in the hopes of reversing the decision.