Today, the Honourable Andrew Furey, Premier of Newfoundland and Labrador, and the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, announced an additional measure to help residents with the high cost of living. A one-time cheque of up to $500 will be provided to residents of the province who have reached the age of 18 years old as of December 31, 2022 and who filed a 2021 tax return with an adjusted income of $125,000 or less.
The cheque, which will be provided to approximately 392,000 residents in the province, will be income tested based on an individual’s adjusted income (which refers to line 23600 of the income tax return for most taxfilers). Those with adjusted income of less than $100,000 will receive $500 and those with adjusted income between $100,000 and $125,000 will receive a partial payment ranging between $250 and $500.
No application is required. The Government of Newfoundland and Labrador will issue cheques beginning later in 2022 to eligible individuals based on 2021 income tax return filings with the Canada Revenue Agency. Residents who have not yet filed their 2021 tax return may do so up until December 31, 2022 to be able to receive this benefit.
This initiative, with an estimated cost of $194 million, is part of the Government of Newfoundland and Labrador’s overall plan to help residents with the cost of living, and aligns with the direction of the Health Accord to improve economic security in this province.
While these measures are necessary right now, decisions to help Newfoundlanders and Labradorians are made with the province’s fiscal situation in mind – addressing our past, present and future. Government will also be establishing and making the first contribution to the Future Fund this year. This will ensure the benefits of the current fiscal situation will ensure solid footing for challenging years to come.
Since March 2022, government has announced nearly half a billion dollars in targeted cost-of-living measures (a full list is included in the backgrounder below).
For more information, please email taxpolicy@gov.nl.ca or phone 709-729-3166.
Quotes
“As our first order of business in this session of the House of Assembly, we are ensuring that a one-time cost of living relief will be given to approximately 392,000 residents of our province. This is an investment aimed at helping you and your family at a time when you need it most as people around the world face challenges from rising costs, and as we continue to prioritize investments that will improve the economic security in Newfoundland and Labrador.”
Honourable Andrew Furey
Premier of Newfoundland and Labrador
“Together with other initiatives, such as the home heating supplement, the temporary reduction of the provincial tax on gasoline, and increases to the income supplement and seniors’ benefit, your government is helping to address the higher cost of living due to higher oil prices and pandemic-related supply shortages. The relief announced today is just one of nearly a half billion dollars in targeted cost of living measures we have announced since March 2022.”
Honourable Siobhan Coady
Deputy Premier, Minister of Finance
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Learn more
Provincial Government Launches Home Heating Supplement Program (Furnace and Stove Oil)
News Release: Budget 2022 Helps with the Cost of Living; Addresses Government’s Financial Challenges
Government Introduces Additional Measures to Help Residents with the Cost of Living – News Releases
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BACKGROUNDER
Government of Newfoundland and Labrador Cost of Living Investments
The Government of Newfoundland and Labrador has announced $416 million in targeted short- and long-term investments since March 2022 to help residents with the cost of living, including:
Short-term:
- One-time cost of living relief up to $500 for residents of the province who have reached the age of 18 years as of December 31, 2022 and who filed a 2021 tax return with an adjusted income of $125,000 or less;
- Temporarily lowering the price at the pump by 8.05 cents per litre (includes HST). This is possible through a reduction in the provincial tax on gasoline and diesel by 7 cents per litre ($44 million);
- Home heating supplement program. The supplement ranges between $200 and $500, is available to residents of the province whose adjusted family income for 2021 was $150,000 or less and have directly incurred costs for the purchase of furnace or stove oil to heat their home;
- 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);
- Three increases to the minimum wage based on the recommendation of the Minimum Wage Review Committee:
- On October 1, 2022 the minimum wage increased 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; and,
- On October 1, 2023, the minimum wage will increase by 50 cents, bringing it to $15.00 per hour.
- A one-year transitional support program for smaller employers at a cost of approximately $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 in 2020, to $25 in 2021, 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).
