Affordability Act, Carbon Tax Fairness Act pass
Gov’t makes good on campaign promises to save people money
December 10, 2024, 1:14 pm
Ryan Kiedrowski, Local Journalism Initiative Reporter
Responding to concerns heard over cost of living pressures, the provincial government introduced the Saskatchewan Affordability Act in the Legislative Assembly last week. Included in the Act is the largest personal income tax reduction since 2008, an increase to the Saskatchewan Low-Income Tax Credit, and a 50 per cent boost to the First-Time Homebuyers maximum benefit.
According to provincial finance minister Jim Reiter, the Affordability Act was an example of making good on a campaign promise.
“We campaigned in October on this affordability package, so this is essentially our platform,” he told the World-Spectator. “We promised the people of Saskatchewan that if they gave us the privilege of forming government again, that we would put this in place, and this is us honouring that commitment.”
Increases are also coming to the Disability Tax Credit and the supplement for children under 18 will increase by 25 per cent, as will the Caregiver Tax Credit, as other features in the Act.
“These measures, they’re going to be implemented for the 2025 tax year,” Reiter explained. “The budget doesn’t need to be passed first, this is a separate bill. So our hope right now is this bill will be passed on Dec. 5. If that goes according to schedule, it will be in place. Most of these measures will be in place, either effective Jan. 1 or retroactive to Jan. 1.”
For a family of four earning $100,000, the changes mean a savings of over $3,400 over four years. In a two-senior household with a combined income of $75,000, the savings is an estimated $3,100. When fully implemented, over 54,000 residents will not be paying provincial income tax.
In response to the Affordability Act, NDP finance critic Trent Wotherspoon said that while the NDP won’t hold up any relief that could be extended, he’d like to see “some cost of living relief in a desperate way.”
“The challenge is that it’s very limited and very delayed,” he said of the Affordability Act. “Most of the impacts wouldn’t be felt for well over a year, two, and three years out and shuts out many people as well. What we’ve been calling for is some urgent recognition and action that would provide savings to people with respect to cost of living now and as we head into the holiday season.”
Reiter stressed that items in the Act are fast-moving, even retroactive in cases.
“These will take effect either Jan. 1 or retroactive to,” he restated. “I’ve written a letter to the two ministers involved in this federally and asked them to have it in effect for Jan. 1, because the federal government collects the income tax for us. They did that on their GST legislation just a week or so ago, so there’s no reason they shouldn’t do it for this. We’re optimistic they will, but in the worst case scenario—even if they don’t—it will still be in effect for people’s deductions on July 1, but again, it will still be retroactive to the start of the tax season.”
The opposition noted a few key areas they would like to see immediate changes, such as fuel, clothing, and food.
“We put on the table once again—and the government voted against it—to scrap the gas tax, to suspend the 15 cents a litre on gas and diesel for a six-month period of time, to get real savings to families that have been hit hard, as well as to permanently scrap the PST that the SaskParty had stuck on kids clothes and also groceries,” Wotherspoon said. “These are the kinds of measures that would provide savings to families now as they head into the holiday season and for many years moving forward.”
On the items Wotherspoon brought forward, Reiter wasn’t convinced they were feasible options.
“They keep saying, ‘take PST off for groceries,’ there isn’t PST on groceries. There is on some prepared foods and some snack foods, there’s no PST on vegetables, there’s no PST on fruit, there’s no PST on meat, or on milk, or on eggs, or bread, there is no PST on groceries,” he said, pointing out that the Affordability Act speaks to permanent changes rather than temporary measures.
Other items in the Act include doubling the Active Families Benefit plus the income threshold to qualify for it, and an increase to the Graduate Retention Program’s tax credit.
Common ground on Carbon Tax
One topic both the SaskParty and provincial NDP can agree on is the carbon tax. Both are opposed to it and would prefer it didn’t exist at all.
“Our government will keep fighting until the Trudeau-NDP carbon tax is removed everywhere, on everything, for everyone,” said Minister of Crown Investments Corporation Jeremy Harrison, who introduced the SaskEnergy (Carbon Tax Fairness for Families) Amendment Act, 2024 last week, making good on another campaign promise. Since removing the carbon tax from home heating last year (effective Jan. 1, 2024), the average Saskatchewan family has an extra $400 in their pockets. With another increase in the federal tax set for April 1 from $80 to $95 per tonne, that annual average savings on home heating will be $480 per year.
“We don’t support the federal carbon tax, and we call for the carbon tax to be scrapped,” Wotherspoon said. “When the federal government acted to then exempt eastern Canada on home heating—something that was completely unfair—we were the ones that actually brought the motion to exempt heat here in Saskatchewan, and so we brought that motion to exempt Saskatchewan people from paying the carbon tax and to protect them. So this is something that we support. Ultimately, we think the federal carbon tax is offside and should be scrapped entirely.”
The bill presented seeks to repeal the sunset clause slated to occur on Dec. 20, cementing that the provincial government continues to be the sole registered distributor of natural gas for the purposes of the federal Greenhouse Gas Pollution Pricing Act throughout 2025 and beyond.
“This decision is in direct response to the Trudeau-NDP decision to remove the carbon tax on home heating oil which disproportionately impacts Atlantic Canada and leaves Saskatchewan families out in the cold,” Harrison said.
Both bills passed with three readings on Dec. 5.