The bonus was announced as part of the federal government's budget in March.
"Today, the first batch of the Coalition's $250 cost of living payments will begin hitting the bank accounts of millions of eligible Australian pensioners, income support recipients, veterans and concession card holders," Treasurer John Frydenberg said.
In March, Frydenberg said the 2022/2023 budget is a "temporary, targeted and responsible" response to address the cost of living pressures.
"Practical measures that will make a difference," he said at the time.
However, the payments were criticised at the time of the announcement by the Australian Council of Trade Unions president Michelle O'Neil, who said they did not make up for wage stagnation.
Australian Council of Social Service chief Cassandra Goldie says much of the assistance goes to people who don't need it.
"We've got people who are facing homelessness and hunger, and we didn't get a budget that will tackle it in a permanent way," she said.
Cost of living has become a significant election issue, with Prime Minister Scott Morrison under pressure to acknowledge the rising prices under his government rather than blame international factors.
Morrison said voters should return his government to power based on its track record and steering Australia through a time of great uncertainty.
"Through the course of this pandemic, we got through this together because (Australians have) been making wise decisions and the government has been doing the same to back them in," he said.
"We have been wise stewards of taxpayers' money as well to ensure our economy is set up to perform in a very, very challenging environment."
Who Is Eligible For Cost Of Living Payment?
- ABSTUDY Living Allowance
- Age Pension
- Carer Payment
- Carer Allowance, but only if you're not getting another income support payment
- Disability Support Pension
- Double Orphan Pension
- Farm Household Allowance
- JobSeeker Payment
- Parenting Payment
- Special Benefit
- Youth Allowance for students and Australian Apprentices
- Youth Allowance for job seekers
- Eligible Department of Veterans' Affairs payments.