Inland Revenue update 30 May re Cost of living payment

May 30, 2022

Cost of Living Payment

As part of Budget 2022, the Government announced the introduction of a Cost of Living Payment to help with the rising costs of inflation for eligible individuals.

Inland Revenue will pay the Cost of Living Payment automatically once eligibility has been established. There is no application process.

The payment will be paid in three monthly instalments beginning 1 August. Eligibility will be assessed over the three-month term of the payment.

People do not need to apply for this payment.  The payment will be automatically made to all eligible individuals who earned $70,000 or less in the period 1 April 2021 to 31 March 2022 and are:

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

·            aged 18 or older;

·            both a New Zealand tax resident and present here; and

·            not in prison.

To allow Inland Revenue to establish eligibility and to make the payment, people will need to:

  • have already received their Individual Income Tax Assessment from IR, or, if they are self-employed, filed their IR 3 tax return for the 2021/22 tax year; and
  • have a valid New Zealand bank account in their Income tax account in myIR

If you are assisting customers who may be eligible, full information including examples, is now available on our website at Cost of Living Payment (ird.govt.nz)