Newfoundland and Labrador Regulation 34/23, titled the Income Supplement and Seniors’ Benefit Regulations (Amendment) under the Income Tax Act, 2000, introduces changes to the framework governing income supplements and seniors’ benefits in the province. This regulation is authorized by section 68 of the Income Tax Act, 2000 and is aimed at refining how financial assistance is calculated for eligible individuals, particularly seniors.

The core of Regulation 34/23 lies in its revised calculation formulas for income supplements and seniors’ benefits. These changes are designed to better align financial support with current economic conditions and income levels. For income supplements, the new formula begins with a base amount of $254. From this starting point, additional amounts are calculated based on income and dependency factors. Specifically, the formula adds either $266 or 5.32% of the income exceeding $15,000, whichever is less. Further adjustments include $69 for each qualified relation and $231 for each qualified dependent. If an individual’s adjusted income exceeds $40,000, there is a reduction of 9% on the income above this threshold.

In terms of seniors’ benefits, the amendment introduces a more nuanced approach. It includes an additional $231 if the individual or their qualified relation qualifies for specific federal tax benefits. A reduction is then applied based on 1.4% of the income that exceeds $29,402. Furthermore, for seniors aged 64 or older, a base amount of $1,516 is provided. However, if their income surpasses $29,402, there is a reduction of 11.66% on the excess amount. These adjustments are intended to better reflect the financial needs of seniors and other eligible individuals, providing a more equitable distribution of benefits.

The new regulations will come into force on July 1, 2023. This effective date ensures that the revised calculations will apply from the beginning of the fiscal period, marking a fresh approach to financial support for those eligible. The timing of this implementation reflects the province’s commitment to updating its social support mechanisms in response to evolving economic conditions and income disparities.

Regulation 34/23 represents a significant update to the Income Supplement and Seniors’ Benefit Regulations. By introducing new thresholds and recalculating benefits based on income levels and dependencies, the amendment seeks to provide fairer and more responsive financial support to residents, particularly seniors.

Newfoundland and Labrador (34/23) April 29, 2023