The Honourable Tom Osborne, Minister of Finance and President of the Treasury Board, presented the Newfoundland and Labrador budget on March 27, 2018. This year’s “Building for our Future” budget focuses on safer communities, as well as business retention and growth.
While no new taxes or tax rate increases were introduced, the Minister did announce the reduction of the provincial tax on automobile insurance by two percent, effective January 1, 2019, with further reductions of one percent every year until 2022, thereby reducing the tax rate on automobile insurance only by five percent over a period of four years.
In addition, as further support for business, the provincial payroll tax exemption threshold will be increased by $100,000.
From a personal income tax perspective, starting on January 1, 2019, search and rescue volunteers will be eligible for non-refundable tax credit of $3,000.
Further information on Newfoundland and Labrador’s 2018 budget may be found on the province's web site at: Newfoundland and Labrador Budget 2018.
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to call the Ryan TaxDirectTM line at 1.800.667.1600.