Cost of Living Payment 2022
Rising expenses have led the Government to introduce a Cost of Living payment to ease the pressure of increasing expenses. The payments total $350 and may be paid in instalments from the 1st of August to the 3rd of October 2022, or it may be paid in a lump sum. If your net income before tax was under $70,000.00 in the financial year ended 31st of March 2022, you may be eligible.
If you are on a salary or wage, they consider your income minus your claimable expenses before tax. IRD’s example is that if you earned $90,000 and had $20500 in claimable expenses, you will be eligible. But if you earned $90,000 and paid $20,620 tax, without any claimable expenses you would not be eligible.
For business owners it is income minus claimable expenses, excluding losses from prior years. If you earned $90,000 but your claimable expenses were only $10,000, your loss carried forward from the prior year will not bring into the required range.
It is based off your individual, not household, earnings. However, you must have earnings other than Portfolio Investment Entity (PIE) income.
Your 2022 tax return will inform IRD of your income. IRD will continue to check for eligibility until the 31st of March 2023, so tax returns filed later in the year will still be captured if you have an extension of time, granted to many of those who have an accountant.
Because this payment is intended to provide relief for those with lower incomes, it will not be required to be reported for benefits, child support, student loan, and other similar funding services. It will not be reassigned by IRD to pay off outstanding IRD debts.
You do not need to do anything to receive this payment except making sure your information with IRD is correct, such as your age and bank account. You do not need to apply for this payment: IRD will automatically assess your eligibility. If you would like to check the information IRD holds you can log in to your myIR or ask your accountant.
Please see the link below for further eligibility criteria, IRD has provided some detailed examples, such as what happens if you do not meet some of the criteria until after the first or second payment, and how your income eligibility is assessed.
Great local Accountants. They provide an excellent service with great explanations for the layman. They provide accounting services for non rural clients too.
Rural Accountants is a real asset to our business.
The team at Rural Accountants pretty much manage all our administrative tasks for the group including payroll and tax planning, ensuring we don’t pay any more than necessary. They are at the forefront of technology and have helped us get up and running with Xero and Figured which is much more efficient than the way we used to work.
Christine is very knowledgeable, great to deal with and knows our business well. She is also a sheep & beef farmer so knows the industry really well and understands our needs.
Rural Accountants keeps us on track through strategic and forward planning meetings throughout the year. Christine knows our business inside out so she can deal with our questions instantly.
What Our Customers Think
I used to work out my GST and process it manually which would take me at least a full day every two months. The team set up reconcilliation rules and other quick tools, and showed me how to do all my reconcilliations and process my GST returns through Xero which now takes me no time at all!
As a farmer, Christine understands our business and how farmers and growers operate.
We use Rural Accountants to provide a full accounting service to an orcharding partnership which operates a number of orchards with a wide spread of varieties and management systems. Rural Accountants are always timely and accurate, and their annual financial accounts are extremely easy to understand and very grower-friendly.