TOFA Method Elections

Date
26/06/2016
Issue

TOFA method elections should be revokable.

Board response

The Board understands that the revocability of elections is being considered in the context of the TOFA reform announced in the 2016-17 Budget. As part of this reform, the system is expected to be redesigned with a focus on simplicity, in part to reduce the numbers of elections. When the new framework is confirmed, detailed consideration will be given to whether any new elections, or any retained elections, would appropriately be revocable.

Additionally, consideration will be given to transitional arrangements, which may include prospective revocation of previous TOFA elections, depending on the final design of the system.

At this stage, Treasury is not considering targeted changes to allow revocability under current TOFA rules, as the redesign of the system is likely to have a major impact on any changes.

This idea has been referred to Treasury for their consideration.