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Cost of Living Payment

As part of Budget 2022, the Government has introduced a short-term Cost of Living Payment to help eligible people with their day-to-day living costs. The Cost of Living Payment is assessed and automatically paid by Inland Revenue.


Do you qualify?

You can get the Cost of Living Payment if you earned $70,000 or less over the period 1 April 2021 to 31 March 2022, and you're:

• aged 18 or over

• a New Zealand tax resident living in New Zealand, and

• not eligible for a Winter Energy Payment.

You don't need to send in an application. Inland Revenue will check your records, and if you qualify, you'll receive the Cost of Living Payment automatically.

There's a group of people who are not eligible for the Cost of Living Payment. Please see the IRD website for more details: ird.govt.nz/cost-of-living-payment


How much is it?

The Cost of Living Payment is $350, split into 3 payments.

When will the money be paid out?

If you qualify, you'll get the money in 3 monthly payments, starting on 1 August 2022. For most people, the 3 payment dates are:

• 1 August 2022

• 1 September 2022

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

Inland Revenue will check to see if you are eligible for the Cost of Living Payment before each monthly payment is made. You could be eligible for 1, 2 or all 3 payments.

Your eligibility for the payment is based on your income for the 2022 tax year. If your 2022 tax return is not filed by the payment dates you will not receive your payment until your return is filed.

If you have a tax agent, your tax return may not be filed yet as tax agents have an extension of time arrangement with Inland Revenue. To be eligible you must have your return filed by the final date, 31 March 2023.

If your income assessment is completed after any of the 3 Payments have been paid and you are eligible for it, you'll get either:

• any payments that have not been made yet and a lump sum of any payments you were eligible for but missed.

• a lump sum based on the number of payments you are entitled to if all payment dates have passed.

Inland Revenue will check eligibility until 31 March 2023

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

If an IR3 is filed or income assessment created on or:

• before 31 March 2023, Inland Revenue will still check if you're eligible for the payment (even if it is processed or completed after this date)

• after 1 April 2023, Inland Revenue will not check if you're eligible for the payment (even if your tax agent has applied for and been granted a deferment to file later).


When you might see the payment in your bank account

Due to the large volume, payments will be staggered throughout the day of each payment date so some customers will get paid before others.

Customers who have a credit union account will receive their payment the day after each payment date.


The payment is not taxed

You will not pay tax on the Cost of Living Payment. It does not count as income for:

• child support

• Working for Families

• student loans

• benefits and payments from Work and Income.


What you can do to prepare for the payments

The Cost of Living Payment will be paid into the bank account Inland Revenue hold for your Income tax account. Check myIR to make sure this is correct.

Link: ird.govt.nz


Where can you find more information?

Please visit the IRD website for more information: ird.govt.nz/cost-of-living-payment

If you have any questions, please get in touch with your Campbell Tyson advisor or call our helpdesk on 0800 883 718.

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