These benefits are refundable tax credits that may be paid to low income individuals, seniors and families. A refundable tax credit is an amount paid even if there is no tax payable.
Eligible recipients will receive their first payment, consisting of 2 quarterly payments, in October 2016. The benefits will then be paid to those eligible in quarterly installments in January, April, July and October.
No application for the benefits is required. However, eligible individuals must ensure their annual income tax return is filed in order to receive the benefits. Eligibility will be based on family net income from the previous year.
These credits are provided under Section 34 of the Income Tax Act, 2000 .
(2016 Benefit Year)
|Amount for Eligible Individuals||
Basic credit of $220
Maximum credit of $450 (1)
|Amount for Spouse||$60|
|Amount for Eligible Children||$200|
|Amount for Individuals Claiming the Disability Tax Credit||$200|
|Phase-in Income Threshold||$15,000|
|Lower Phase-out Income Threshold (2)||$40,000|
|(1) Additional amount of $230 to be phased in at a rate of 4.6% for family net income in excess of $15,000. Eligible individuals with family net income of $20,000 to $40,000 will receive the maximum benefit of $450.
(2) The phase out of the benefit begins at family net income of $40,000 at a rate of 9%.
While fully funded by the Government of Newfoundland and Labrador, these benefits are administered by the Canada Revenue Agency and will be paid with the federal GST Credit. To learn more about the federal administration of provincial credits, please visit the CRA webpage: http://www.cra-arc.gc.ca/bnfts/rltd_prgrms/nl-eng.html .
For more information please contact: