Saskatchewan government introduced the affordability bill on Monday

On Monday afternoon, the provincial government introduced the Saskatchewan Affordability Act, meant to make life more affordable in the province and keep the Saskatchewan Party’s election promises.

The act would make the necessary changes in legislation for the affordability measures Scott Moe’s Sask. Party promised during the election campaign to come into effect.

The changes would reduce income taxes by increasing the personal exemption as well as the spousal exemption, child exemption and senior supplement over the next four years. They would be increased by $500 a year for the next four years. The bill would also index the income tax brackets and tax credits to keep up with inflation.

The legislation would also increase the low-income tax credit by five per cent each year for the next four years.

In the legislation, the Home Renovation Tax Credit would be re-created — it was first introduced after the 2020 election but ended shortly thereafter.

The new legislation would also increase a number of tax credits: the Saskatchewan First-Time Homebuyers Credit, the Disability Tax Credit and a similar supplement for children with disabilities, the Caregiver Tax Credit would also increase, as well as the Active Families Benefit which would rise to $300 per child per year, and the Graduate Retention Program’s tax credit to $24,000 from $20,000.

As well, the legislation would also keep the small business tax rate at one per cent — it was scheduled to rise back to two per cent next year.

Finance Minister Jim Reiter has said the government wants at least some of the measures to be in place by January to start giving people relief on their income taxes. With the fall sitting expected to last only two weeks, the government will have to fast-track the bill and pass it this week.

The government blocked two motions for affordability relief last week from the Saskatchewan NDP — cutting the PST from pre-made groceries and cutting the gas tax. When asked if the NDP would support the government’s affordability measures, leader Carla Beck said her party would treat it like any other legislation and take a look at what’s in it before making a decision.

Other election promises

There were a number of other election promises the Sask. Party made which would affect people’s pocketbooks, but several aren’t expected to come into effect until the next fiscal year.

Governnent said increases to the Personal Care Home Benefit, and the earned income amount for the Saskatchewan Assured Income for Disability (SAID) program won’t be introduced until the 2025-26 budget.

The refundable tax credit toward eligible fertility treatments, the Small and Medium-sized enterprises Investment Tax Credit and the training rebate for Class 1 commercial drivers’ licenses also aren’t expected until the spring budget in several months.

Today, our government will introduce Bill 1 of the new Legislature: The Saskatchewan Affordability Act. 

It will deliver on the commitments we made in the recent election campaign to make life more affordable for Saskatchewan people. pic.twitter.com/r6Ux2zj2SA

— Scott Moe (@PremierScottMoe) December 2, 2024