As part of Budget 2022, the Government announced the introduction of a Cost of Living Payment of $350 to help with the rising costs of inflation for eligible individuals.
The payment will be paid by Inland Revenue (IR).
There are some key points about the Cost of Living Payment that are very relevant to tax agents and bookkeepers.
- There is no application process – once eligibility has been established, IR will make the payment by direct credit into the person’s New Zealand bank account.
- To allow IR to establish eligibility and to make the payment people will need to:
- have filed their IR 3 tax return for the 2021/22 tax year, or have already received their Individual Income Tax Assessment from IR
- currently have a valid New Zealand bank account in their Income tax account in myIR.
- before 31 March 2023, we'll still check eligibility for the payment (even if it is processed or completed after this date)
- after 1 April 2023, we will not check eligibility for the payment (even if you have applied for and been granted a deferment to file later).
Our Cost of Living Payment webpage has more information (including examples) to help you: