The Government is asking the public, business and technology industry experts to give it some ideas on how best to use digital services to modernise and simplify the tax system.
Revenue minister Todd McClay said the scale of the proposed changes would be unlike anything previously contemplated.
Mr McClay said this was just the beginning of a plan to streamline paperwork and simplify the process for paying tax.
"Our interest is particularly around small to medium sized enterprises we think some of the cost of compliance upon them is probably too high so we're looking to technology and other ways to simplify their process and focus on their business and think a lot less about the tax department."
Business leaders said the changes were a good start and plan to provide feedback on the proposals, which were due in May.