National is continuing to criticise the Government over the cost of living payment error, with finance spokesperson Nicola Willis saying an investigation is needed.
Thousands are to be cut off from the automatic second instalment on September 1, after New Zealanders living overseas and a small number of deceased people received the payment. More than 30,000 people will have to prove to Inland Revenue they're eligible to get the $116 payment.
"The Government has been completely, utterly disrespectful of taxpayer's money. It's not the Government's money, it's people out there who have worked incredibly hard and would have liked to keep it in their own pocket probably," National leader Christopher Luxon said.
National requested an independent investigation on August 2, wanting to determine the scale of the issue.
Nicola Willis again said on Tuesday the Government should investigate further to know how many ineligible people received the payment.
"They should make it simple as possible for people to pay it back and they should be crystal clear that's the right thing to do."
Auditor General John Ryan wrote to Inland Revenue on Monday after a complaint by Willis.
Breakfast looks at what $27 can get the average Kiwi. (Source: Breakfast)
He concluded the payments made to ineligible people did not constitute unappropriated expenditure, but speed and expediency were prioritised over certainty and accuracy, there was a lack of clarity over being "present" in New Zealand and that Inland Revenue should look at what steps it can take to find out how many ineligible people received a payment.
READ: Ardern hits back at Luxon over cost of living payment criticism
Prime Minister Jacinda Ardern defended the payment error.
"There was a cost-of-living crisis. It is our duty to do what we can to support New Zealanders through.
"Would any payment have been perfect? I would argue, no. The most important thing to do is to support New Zealanders when they needed it most, and we've done that."
Ardern said of the 31,000 people who will now not automatically receive the payment - "we can't even be 100% certain that those individuals were ineligible".
READ MORE: How far can the cost of living support payment go each week?
"We are taking the approach now that if they are deemed eligible, they will need to make sure they are essentially informing us of that."
"There were three choices. Either do nothing, the second choice was to do what we did and seek to reach as many New Zealanders as possible who fit in that lower-middle income category. The third option was to have them apply and we know that just wouldn't have reached people."
"It was not a perfect system and we've continued to sought to refine it. I absolutely stand by the intent to support New Zealanders."
In Parliament, Ardern took aim at National's proposal to reverse the top tax rate, giving a tax cut to the country's top earners.
"I'm confident that [helping] those on $70,000 or less was the right thing to do in this period of time and I'd absolutely stand by it," she said, in reference to the cost of living payment.
"Relative to that party's decision for instance, to have someone on $300,000 getting a tax cut of $8000, whereas someone on $45,000 would get $2.15 a week. That is an example of wasteful."
The first of three instalments was automatically sent out to more than 2 million people on August 1. Two further instalments are set for September 1 and October 3.
To be eligible, a person must be a New Zealand tax resident aged 18 and over, who earns $70,000 or less per year, and who is not receiving the winter energy payment. The initiative, which is projected to cost $816 million, was announced in Budget 2022.
National had also been under fire over its Budget 2022 policy to reduce income taxes, earlier this month parking the policy as not confirmed ahead of Election 2023, then renewing the pledge at the party's conference.
Other political parties had deemed the policy as potentially inflationary.
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