Finance
Health and Community Services
October 5, 2010$28.6 Million in Low-Income Benefits
En Route to Seniors
This year's Low Income Seniors' Benefit is on its way to
approximately 42,500 seniors across the province, the Honourable Tom
Marshall, Minister of Finance and President of Treasury Board, announced
today. Budget 2010:
The Right Investments — For Our Children and Our
Future
raised the maximum amount of the annual benefit to $900, an
increase of 12.8 per cent over last year.
"With government's latest investment in the Low Income Seniors'
Benefit, the maximum benefit available is now $900, compared to $376 in
2006, and the benefit is going to more seniors than ever before," said
Minister Marshall. "This is another in a series of enhancements that
have been made to the Seniors' Benefit in recent years. In addition to
increasing the benefit amounts, our government has indexed the benefit
to account for inflation and raised the qualifying income thresholds,
thereby expanding the program so that more seniors are eligible."
The Seniors' Benefit is a refundable tax credit paid to both married
and single seniors with low incomes, even if they have no tax payable.
It is available to those who are at least 65 years of age at any time
during the tax year and have a family net income of less than $33,884.
Seniors with family net income of up to $26,165 are eligible
to receive the maximum of $900, while those with net income between
$26,165 and $33,884 qualify for a partial
benefit.
This year, approximately 33,500 seniors or senior couples are due to
receive the maximum benefit amount and roughly 9,000 are eligible for a
partial benefit. The enhancements in Budget 2010 bring the Provincial
Government's total investment in the Low Income Seniors' Benefit to
approximately $28.6 million this fiscal year, compared to $7.5 million
in 2003.
The Seniors' Benefit is included in the GST/HST credit issued in
early October each year. This year's payments are scheduled to be mailed
out today, or directly deposited in bank accounts for individuals with
that payment option.
The amount of the Seniors' Benefit is based on family net income from
the previous year. Individuals do not need to apply for the benefit, but
must have filed their annual income tax return. Minister Marshall also
noted that the same benefit applies to both single seniors and married
couples since single seniors incur many similar costs as couples.
"The Low Income Seniors' Benefit is one of several ways our
government is helping to improve the life of seniors in this province,"
said the Honourable Jerome Kennedy, Minister of Health and Community
Services and Minister Responsible for Aging and Seniors. "Through this
and other programs like the Age-Friendly Newfoundland and Labrador
Grants Program, the Seniors of Distinction Awards, the Newfoundland and
Labrador Prescription Drug Program, and the home heating rebate, we
continue to provide for the people who have given so much to
Newfoundland and Labrador."
Also in Budget 2010, the non-refundable Age Amount tax credit for
individuals aged 65 years or older was enhanced. "The Age Amount
increased from $3,681 to $5,000, and the qualifying income level from
$51,940 to $60,733, meaning that more than 73,000 seniors now qualify to
receive it," said Minister Marshall. "Those who claim the Age Amount tax
credit will receive a benefit of up to $102 through a reduction in their
provincial tax payable. This province now has the largest Age Amount tax
credit in Atlantic Canada."
In addition to these changes, several other tax measures were
announced in Budget 2010, including additional reductions to personal
income tax rates. All told, Budget 2010 tax reductions are saving
Newfoundlanders and Labradorians approximately $48.5 million this year.
"Budget 2010 tax measures are bringing more financial benefits to the
province's seniors and helping their incomes go farther," said Minister
Marshall. "These measures build on other positive initiatives that this
government has taken to support all our seniors in Newfoundland and
Labrador."
The Low Income Seniors' Benefit is administered on behalf of the
province by the Canada Revenue Agency (CRA). For more information, or to
determine eligibility for the benefit, individuals may contact the CRA
at 1-800-959-1953.
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