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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