Taxation (Cost of Living Payments) Act 2022

1 Title

This Act is the Taxation (Cost of Living Payments) Act 2022.

2 Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

Part 1 Amendments to Tax Administration Act 1994

3 Amendments to Tax Administration Act 1994

This Part amends the Tax Administration Act 1994.

4 Section 3 amended (Interpretation)

(1)

This section amends section 3(1).

(2)

Insert, in appropriate alphabetical order:

cost of living payments scheme means the Cost of Living Payments Scheme established and administered by the Crown to provide financial support to certain low- and middle-income persons affected by an increase in the cost of living

(3)

In the definition of disputable decision, after paragraph (b)(v), insert:

(vb)

to make, or to decline to make, a grant under the cost of living payments scheme under section 7AAA; or

(4)

In the definition of tax, after paragraph (cd), insert:

(ce)

for the purposes of sections 6 to 6B, 156 to 165, 174AA, and 176 to 177CA, includes an amount payable in relation to a grant made under the cost of living payments scheme:

5 New section 7AAA inserted (Administration of cost of living payments scheme)

After section 7, insert:

7AAA Administration of cost of living payments scheme

(1)

It is a function of the Commissioner to administer the cost of living payments scheme (the scheme) on behalf of the Crown.

(2)

If a person who receives a grant under the scheme from the Commissioner does not qualify for the grant under the eligibility requirements of the scheme, the person must immediately repay to the Commissioner the total amount of the grant.

(3)

The Commissioner must publish, on an internet site administered by the Commissioner, the eligibility requirements referred to in subsection (2).

6 Section 157 amended (Deduction of tax from payments due to defaulters)

In section 157(10), definition of income tax, after paragraph (k), insert:

(kb)

an amount payable in relation to a grant made under the cost of living payments scheme:

Part 2 Amendments to Income Tax Act 2007

7 Amendments to Income Tax Act 2007

This Part amends the Income Tax Act 2007.

8 Section CW 33 amended (Allowances and benefits)

After section CW 33(1)(c), insert:

(cb)

a payment under the cost of living payments scheme, as defined in section 3(1) of the Tax Administration Act 1994:

9 Section MB 13 amended (Family scheme income from other payments)

In section MB 13(2)(n), before “(e),”, insert “(cb),”.

Legislative history

19 May 2022

Introduction (Bill 128–1), first reading, second reading, committee of the whole House, third reading

24 May 2022

Royal assent

This Act is administered by the Inland Revenue Department.