The much-awaited Cost of Living Payments, does the IRD have your bank details?

The Cost of Living Payments Act 2022 contains several amendments to support the scheme to provide temporary financial support to eligible low-to-middle-income individuals facing increased cost-of-living pressures because of the recent spike in inflation. Inland Revenue administers the scheme.

Under the scheme, cost of living payments totalling $350 will provide short-term support for low-to-middle-income individuals earning up to $70,000 in the 2021–22 tax year and who are not eligible for the winter energy payment.

The payments will be made in 3 monthly instalments from 1 August 2022 and at a flat rate with no apportionment.
Eligibility will be assessed for each instalment separately.

The main eligibility criteria for receiving the payment are:

• net income of $70,000 or less in the period 1 April 2021 to 31 March 2022

• a finalised income tax assessment for the period 1 April 2021 to 31 March 2022

• not receiving a qualifying benefit for the winter energy payment (Sole Parent Support, Supported Living Payment, Jobseeker Support, Jobseeker Support Student Hardship, Emergency Benefit, Emergency Maintenance Allowance, Youth Payment, Young Parent Payment, New Zealand Superannuation, or Veteran’s Pension) on the date eligibility is assessed

• aged 18 or over

• both New Zealand tax resident and present in New Zealand, and

• not in prison.

The payment is not intended to be paid to those who are deceased.

There is no application process for the payment. Inland Revenue will determine eligibility based on the information it holds and will make the payment into the person’s New Zealand bank account.

So, if you qualify, make sure the Inland revenue has your bank account details, and if they don’t, go online to ird.govt.nz and update your details in myIR. If you are self-employed or otherwise are required to file a tax return and this has not been filed, don’t worry as the Inland Revenue will process your payment anytime between the 1st of August 2022 and the 31st of March 2024.