Cost of living payments 800,000 people short - IRD
The first round of cost of living payments has gone to 1.3 million people - about 800,000 fewer than the Government had estimated.
The Inland Revenue Department, which is administering the payment, says it expects the number of people who meet the criteria to increase over the next two rounds of payments as more tax returns are finalised.
It comes as the Government comes under criticism of the policy, supposed to be targeted at people living in New Zealand but which has seen people overseas and earning well above the threshold receive the payment.
The National Party has called it a "significant misuse of taxpayer money" and is calling on the Auditor General to investigate.
About 2.1 million people were estimated to be eligible for the three monthly payments from August 1, receiving a total of $350. People needed to be over 18, "present" in New Zealand, a tax resident and earn under $70,000, among other criteria.
But figures provided to the Herald by Inland Revenue Department show the first round of payments has gone to just 1.3 million people.
An IRD spokeswoman said the 2.1m figure was an estimate of the number of people eligible.
As of Monday, IRD had confirmed just over 1.4m people met the criteria, but there remained about 137,000 people whose bank account information they did not have.
IRD would continue checking eligibility until March 31 next year, and people would then have another year after to ensure their bank details were correct.
The first round had seen $152m paid out. The whole scheme was estimated to cost $816 million across the three payments, with $16m to resource the 700 staff needed.
The spokeswoman said IRD would be running eligibility checks every day and they expected the number of people meeting the criteria to increase towards the 2.1m "over time", as tax assessments and returns were completed.
The scheme has also copped criticism, with many people who do not meet the criteria receiving the payment, including people living overseas and even non-residents or citizens. IRD has explained this is likely due to them retaining a bank account here and some form of income that makes it appear they do live in the country.
The Herald has spoken to an Australian couple each receiving the cost of living payment despite living across the ditch since November.
Charlotte Castle, a New Zealand citizen, also received the funds despite not living here since 2016. She still has a New Zealand bank account with KiwiSaver linked to it.
National Party deputy leader Nicola Willis said the 800,000 underestimate of people eligible highlighted "what a dog's breakfast it is to administer this policy".
"We have hundreds of thousands who need it not getting it and on the other side people who shouldn't are getting it. Officials were warned this approach was risky and fraught and now we are seeing a lot of New Zealanders in need missing out."
She said all of the issues arising showed it was a "significant misuse of taxpayer money" and there was "potentially an issue with the law".
"The eligibility criteria require that people be both present and using for tax purposes, and that they're also living here. What we've seen is money paid out by taxpayers against the purpose of the legislation.
"This is a measure that we think is very serious.
"We think it's unacceptable that Minister for Revenue David Parker is not concerned, doesn't know what the scale of the problem is, is not seeking that information and will not be investigating.
"We will be writing to the Auditor General today to ask an independent investigation be carried out to determine just how wide the scale of this problem is."
Parker has indicated it could be several million dollars in overpayments, but Willis said based on what people were hearing overseas it could run into the "tens of millions of dollars".
Those who have received the payment and were not eligible can return it via the IRD website and opt out of the next two payments.
As of Monday evening, close to 1000 people had done so, IRD said.
Revenue Minister David Parker said the Government did not know the exact number of ineligible people who have received the cost of living payment.
However, he said he estimated it could be about 1 per cent.
Asked how he came to that figure, especially given IRD said there was no way of estimating, Parker said it was based around wage data.
"We know that the percentage of people for whom IRD's data is inaccurate is a very small percentage."
He said the Government was aware before they had even decided on the scheme ineligible people overseas could receive the payments.
"We were advised from the start that relying upon data sets that are imperfect... we would always have some people getting the payment, even though they're not truly eligible."
Parker said he continued to support the payment scheme, saying the alternative would have been to make people apply for it and consider applications one by one.
"One, would have been an incredibly costly process. Two, would have cost a lot of money. And three, we know, if you run application processes, a lot of people who are eligible miss out. So the process that we have chosen was preferable."
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Poll: 🤖 What skills do you think give a CV the ultimate edge in a robot-filled workplace?
The Reserve Bank has shared some pretty blunt advice: there’s no such thing as a “safe” job anymore 🛟😑
Robots are stepping into repetitive roles in factories, plants and warehouses. AI is taking care of the admin tasks that once filled many mid-level office jobs.
We want to know: As the world evolves, what skills do you think give a CV the ultimate edge in a robot-filled workplace?
Want to read more? The Press has you covered!
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52.3% Human-centred experience and communication
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15% Critical thinking
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29.8% Resilience and adaptability
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2.9% Other - I will share below!
The Gospel’s Relevance Today**
The Gospel, meaning ‘good news’, is the cornerstone of the message contained in the Bible’s first four books—Matthew, Mark, Luke, and John. While these records were written approximately 2,000 years ago, a natural question arises: why is this Gospel still relevant and vital for us today? This analysis seeks to explore what the Bible itself defines as the Gospel and to understand its enduring significance.
**Defining the Gospel: Core Biblical References**
The Gospel is not a vague concept; Scripture provides clear descriptions of its content and focus.
* **The Gospel of the Kingdom:** In Matthew 4:23, as Jesus begins his ministry, he is described as “preaching the gospel of the kingdom.” This immediately establishes that the good news is centrally about a kingdom—the Kingdom of God. His accompanying miracles served to validate the authority of this message.
* **The Gospel of Jesus Christ:** Mark 1:1 opens with, “The beginning of the gospel of Jesus Christ, the Son of God.” Here, “Christ” is a title meaning ‘anointed one’. Thus, the good news is intrinsically about Jesus: his identity as the Anointed One and his unique status as the Son of God.
* **The Gospel of God’s Grace:** In Acts 20:24, the Apostle Paul speaks of his mission to “testify the gospel of the grace of God.” Grace signifies an undeserved gift. This reveals that the Gospel involves a gift from God, offered not because it is merited, but out of His benevolence.
* **The Gospel of Salvation and Peace:** Romans 1:16 declares the Gospel is “the power of God to salvation for everyone who believes,” breaking down barriers between Jew and Gentile (Greek). Furthermore, Romans 10:15 calls it the “gospel of peace,” pointing to a future state of peace brought about by this message.
* **The Gospel Summarised:** 1 Corinthians 15:1-4 provides a foundational summary. Paul reminds believers of the gospel he preached, “by which also you are saved.” He then states its core historical facts: “that Christ died for our sins according to the Scriptures, and that He was buried, and that He rose again the third day according to the Scriptures.” The Gospel is therefore rooted in the sacrificial death and resurrection of Jesus.
In synthesis, the Gospel is the good news of **salvation and future peace in the Kingdom of God**, made possible by **the grace of God** and **the obedient sacrifice of His Son, Jesus Christ**, and offered to all who believe.
**Old Testament Foundations: The Gospel Preached to Abraham**
A crucial question is whether the Gospel is confined to the New Testament. Scripture shows its foundations were laid much earlier. Galatians 3:8 states explicitly that “the Scripture, foreseeing that God would justify the Gentiles by faith, preached the gospel to Abraham beforehand, saying, ‘In you all the nations shall be blessed.’”
This reference points back to Genesis 12:1-3, where God made profound promises to Abraham: to make him a great nation, to bless those who blessed him, and that “in you all the families of the earth shall be blessed.” These promises—later reaffirmed to Isaac and Jacob—form the bedrock of the Gospel hope. The good news of salvation through Christ is the fulfillment of how **all nations** would be blessed through Abraham’s “seed.”
**The Gospel’s Personal Relevance: Good News for You Today**
How does this ancient message become “good news for you” today? The application is clearly outlined in Galatians 3.
* **Access through Faith in Christ:** Galatians 3:26 declares, “For you are all sons of God through faith in Christ Jesus.” The promise made to Abraham is now extended to anyone with faith in Jesus.
* **The Role of Baptism:** Verse 27 explains, “For as many of you as were baptized into Christ have put on Christ.” Baptism is the God-appointed act of faith that identifies a believer with Christ’s death and resurrection.
* **Unity and Inheritance:** Verses 28-29 reveal the glorious outcome: “There is neither Jew nor Greek, there is neither slave nor free, there is neither male nor female; for you are all one in Christ Jesus. And if you are Christ’s, then you are Abraham’s seed, and heirs according to the promise.” Through the Gospel, all barriers are removed; believers become spiritual descendants of Abraham and heirs to the promises of the Kingdom.
This Gospel was once a mystery hidden in God’s purpose (Ephesians 3:3-9). Now, it has been revealed: the unsearchable riches of Christ, offering salvation to all who heed the call, believe the message, and are baptised into him.
**Conclusion: An Enduring and Open Invitation**
The Gospel is far more than a historical account; it is the living, powerful good news of God’s plan for salvation. It is rooted in promises to Abraham, accomplished through the death and resurrection of Jesus Christ, and open to all people without distinction. It offers a tangible hope—the hope of resurrection, peace, and an inheritance in the coming Kingdom of God. This is why the Gospel remains profoundly relevant. It is an invitation to listen, believe, and stand firm in this hope, linking our lives today to the eternal purpose of God.
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