The Government of Newfoundland and Labrador recognizes the stress on people due to the global impacts of high oil prices and pandemic-related supply shortages. To further help residents with the high cost of living, government is providing additional support of $80 million for targeted measures, including a temporary provincial gasoline tax reduction, a one-time home heating supplement for furnace oil, and a commitment to increase the minimum wage.
Today’s measures are in addition to the $142 million announced in Budget 2022 to help residents with the cost of living, bringing the total cost of government support to $222 million.
The two targeted and temporary measures to help with the cost of living include:
- Temporarily lowering the price at the pump by 8.05 cents per litre (includes HST) until January 1, 2023. This is possible through a reduction in the provincial tax on gasoline and diesel by 7 cents per litre. Changes in the gasoline tax will be introduced in the House of Assembly and will come into effect upon publication by the Board of Commissioners of Public Utilities.
- In Fall 2022, a one-time payment will be provided to supplement the cost of furnace oil used for home heating. This supplement will be income-tested based on family net income. Households with family net income under $100,000 will receive a payment of $500. Households with family net income between $100,000 and $150,000 will receive a partial payment of between $200 and $500. More details on how to apply for this supplement will be available in the coming weeks.
For more information on these two targeted and temporary measures to help with the cost of living, please email taxpolicy@gov.nl.ca or phone 709-729-3166.
In addition, the Government of Newfoundland and Labrador announced three increases to the minimum wage based on the recommendation of the Minimum Wage Review Committee. On October 1, 2022 the minimum wage will increase by 50 cents, bringing it to $13.70 per hour. On April 1, 2023, the minimum wage will increase by 80 cents bringing the rate to $14.50 per hour. On October 1, 2023, the minimum wage will increase by another 50 cents, bringing it to $15.00 per hour.
Government is also creating a one-year transitional support program for smaller employers at a cost of approximately $5 million. The program will provide 50 cents an hour, per employee, for employers with 20 or less employees. The program is application-based. Further details will follow on the application process in the coming weeks.
For more information on changes to the minimum wage, please email labourstandards@gov.nl.ca or call toll free 1-877-563-1063.
A full list of cost of living investments in support of Newfoundlanders and Labradorians is available in the backgrounder below.
Quotes
“Over the past few weeks, I’ve had many discussions with my federal colleagues regarding the inflationary pressures that are impacting people throughout the country and indeed the world. We also understand that Newfoundland and Labrador has a higher cost of fuel and goods given our geography. I am confident that the temporary and targeted measures announced today will offer relief to Newfoundlanders and Labradorians, and I appreciate the cooperation with our federal colleagues around this issue.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“Every day, we are hearing from Newfoundlanders and Labradorians who are looking for help with the rising cost of living. To date, we have provided $222 million to the people of the province in short- and long-term measures. We will continue to listen, and to find solutions as we work our way through this extraordinary time.”
Honourable Siobhan Coady
Deputy Premier, Minister of Finance and President of Treasury Board
“I want to thank the Minimum Wage Review Committee for their work. Today’s announcement of increases to the minimum wage aligns with recommendations outlined by the committee, which help address the rising cost of living in our province. Additionally, the new one-year transitional support program for employers with 20 or less employees will provide assistance as they adjust to the new changes.”
Honourable Bernard Davis
Minister Responsible for Labour
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Learn more
News Release: Budget 2022 Helps with the Cost of Living; Addresses Government’s Financial Challenges
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Media contacts
Meghan McCabe
Office of the Premier
709-729-3960
meghanmccabe@gov.nl.ca
Victoria Barbour
Finance
709-729-4087, 327-6152
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Environment and Climate Change
709-729-5449, 691-9466
lynnrobinson@gov.nl.ca
BACKGROUNDER
Government of Newfoundland and Labrador Cost of Living Investments
The Government of Newfoundland and Labrador has announced $222 million in targeted short- and long-term investments since March 2022 to help residents with the cost of living, including:
Short-term
- A temporary lowering of the provincial tax on gasoline and diesel by 7 cents per litre to January 1, 2023 ($44 million). Note: Changes in the gasoline tax will be introduced in the House of Assembly and will come into effect upon publication by the Board of Commissioners of Public Utilities;
- A one-time payment in fall 2022 to supplement the cost of furnace oil used for home heating. ($31 million);
- In April 2022, provided a one-time benefit for those receiving income support ($5 million);
- Elimination of the 15 per cent retail sales tax on home insurance ($37.8 million); and,
- 50 per cent reduction in registration fees for passenger vehicles, light duty trucks and taxis for one year ($27 million).
Transition
- Funding for electric vehicle rebates and charging infrastructure ($1.9 million);
- Funding to help homes transition from oil to electricity ($2 million); and,
- Increasing the minimum wage rate and providing a transitional support program for smaller employers (program estimated at $5 million).
Long-term
- 10 per cent increase to the Income Supplement ($6.8 million);
- 10 per cent increase to the Seniors’ Benefit ($6.5 million);
- Lower child care costs from an average of $35 per day just 18 months ago to $10 a day starting in January 2023 ($46 million);
- An increase in the Pre-Natal Infant Nutrition Supplement ($0.3 million);
- Physical Activity Tax Credit (estimated $7.0 million); and,
- Expansion of the Bus Pass Program to seniors over age 65 who are receiving the Guaranteed Income Supplement and youth receiving services from the Youth Services Program ($2.1 million).