The Cost of Living Payment is a payment to help with the rising costs of inflation. It is for people who meet the eligibility criteria.
IRD will pay you the Cost of Living Payment automatically if you’re eligible. You do not need to apply.
Make sure they have your correct bank account number for your Income tax account in case you are eligible.
You can check your bank account information in myIR. If you do not have a myIR account, you can register for one. Otherwise you can call IRD on 0800 473 777. If you’re registered for voice ID, you can do this 24/7 and there is no wait time.
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 – $116.67
- 1 September 2022 – $116.67
- 3 October (the first business day of the month) – $116.66.
If you have a credit union account you’ll get your payment the day after each payment date.
The payment will show as ‘CostOfLiving’ in your bank account. In myIR the date displayed is the processing date and may be earlier than the day you get your payment.
In some situations you may get some of the main payments and a lump sum, or just a lump sum.
When you might see the payment in your bank account
Due to the large number of payments, IRD will stagger them throughout each payment day. Some customers will get their payment before others.
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, they can confirm you:
- have assessed net income of $70,000 or less in the period 1 April 2021 to 31 March 2022
- are not entitled to receive the Winter Energy Payment because you get 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.
The payment is not intended to go to people who have died.
If you get a Student allowance, you’ll get the payment if you meet the other eligibility criteria.
Your income tax assessment or return will confirm your income
IRD will confirm your eligibility for the payment based on your income for the 2022 tax year.
Depending on your situation, you will have:
- received your automatically issued income tax assessment
- provided more information or confirmed the details on your assessment, and this has been confirmed by us
- filed your Individual income tax return – IR3
If your income assessment is completed after any of the 3 main Cost of Living 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.
Your return may be filed after the payments have been made because for example, you have a tax agent with an extension of time to file your return.
To be eligible you must have your return filed by the final date, 31 March 2023.
The $70,000 threshold is net income before tax
The income threshold is your individual income, not household income. For salary and wage earners, the $70,000 net income threshold is your gross income before tax, minus any expenses you can claim.
For IR3 filers, the net income threshold is your gross income after expenses, but before any losses from earlier years are included.
