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COST OF LIVING PAYMENT

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 (IRD).

There are some key points about the Cost of Living Payment:

1.) There is no application process – once eligibility has been established, IRD will

make the payment by direct credit into the person’s New Zealand bank account.

2.)To allow IRD 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 IRD

• currently have a valid New Zealand bank account in their Income tax account

in myIR.

3.) The final date to be eligible for the Cost of Living Payment is 31 March 2023. If

an IR3 is filed or income assessment generated on or:

• before 31 March 2023, IRD will still check eligibility for the payment (even if it is

processed or completed after this date)

• after 1 April 2023, IRD will not check eligibility for the payment (even if you

have applied for and been granted a deferment to file later).

4.) If a return is filed on, or after 1 April 2023, you will miss out on this

payment.

Payment dates and rate

The total Cost of Living Payment is $350, which will be split into 3 monthly payments starting 1 August.

For most people the 3 main payment dates are:

1 August 2022

1 September 2022

3 October (the first business day of the month).

In some situations you may get some of the main payments and a lump sum, or just a lump sum.

Who will get the payment

IRD will check who is eligible for the Cost of Living Payment before each monthly payment is made. You'll get the payment if on the day IRD check for eligibility we can confirm you:

earned $70,000 or less in the period 1 April 2021 to 31 March 2022

are not entitled to receive Winter Energy Payment by receiving the NZ Super or a qualifying benefit from Ministry of Social Development (MSD)

are aged 18 or older

are both a New Zealand tax resident and present here

are not in prison or deceased.

If you get a Student allowance, you’ll get the payment if you meet the other eligibility criteria.