The COVID-19 pandemic introduced cost of living payment support. New Zealand has also adopted this support method to ease the rising cost of goods and services in the country. The New Zealand government has approved a cost of living payment for its tax residents to support their expenses. This payment is not for everyone. Who will benefit from the outreach of the government?
Cost of living payments for earners of less than $100,000
The New Zealand government has announced that it will roll out cost of living payments for residents. This news came after the 2022 budget was signed, and the payment will be a sum of $350 for three months. Residents can use these funds to pursue their interests, such as online gaming. It will be soothing as NZ casinos get faster and easily accessible.
The payment was scheduled to start in August 2022 and is only for eligible residents. To be eligible, residents must be over 18 years old. Also, they need to earn $70,000 and below from April 2021 to March 2022 fiscal year. Aside from these requirements, the resident must be ineligible for Winter Energy Payment support.
The WEP payment supports eligible residents with $116 in 3 monthly instalments, and the Inland Revenue Service is responsible for the payment. The government initiated it to help residents as global inflation rages on. Presently, up to 2 million tax residents of the country will benefit from the cost of living payments.
Payment threshold for individuals
The government set a threshold for individual income as opposed to household income. This means that it should be the salary or net income before tax is applied. Aside from salary earners, people with a business or a multi-rated portfolio investment can benefit because it does not include excluded income.
However, the government checks the gross income after expenses for a business owner. It does not consider losses the business faced during the year. To determine who is eligible for this payment, Inland Revenue will also use its current information on tax residents to make the payments.
This means that residents do not need to apply in any capacity. The authority will pay out automatically with the data they already have. Also, the government has provided a solution for individuals who have changed their details in recent times. They can visit the government website to update their information or fill out their tax return before March 2023.
The New Zealand government planned to pay the funds out in two batches. In the first batch, 75% of the total number will receive the funds first, and others who were exempt but qualify can now apply to receive payment.
General eligibility criteria
As stated earlier, eligible candidates should earn $70,000 per year or less. They must also be tax residents, not visitors, to benefit from this payment. Also, individuals already on any sort of benefit program from the government cannot qualify. This may include students, job seekers, veterans, pensioners, and emergency benefits. Unfortunately, imprisoned citizens cannot benefit from this payment either. New Zealand plans to spend more than $800 million to support its residents. The benefits may also extend to a reduction in public transportation prices and a reduction in fuel taxes.
