$10 child care, a break on car registration and other ways N.L.'s budget will affect your wallet
Budget to double rebate to urge oil-burning homeowners to convert to electricity
Newfoundland and Labrador's latest budget aims to ease a few things for many residents, particularly young families and people who own houses or cars.
For parents of children in child care, daily costs will drop noticeably. Spaces that cost about $35 in 2020 will be $10 a day, starting in January.
As well, the government is eliminating the retail sales tax on home insurance, although just for one year.
At the same time — and again for just a year— the government is lopping 50 per cent off the cost of keeping a car or a light truck in good standing with motor vehicle registration. The annual registration fee will drop from $180 to $90.
The government said the one-year changes were in response to rising concerns about the cost of living, noting that they have been linked to spiralling fuel costs driven by Russia's invasion of Ukraine this winter.
The government, though, did not include any across-the-board measures to counter heating costs, such as tax relief on fuel.
However, the province will spend an extra $2 million this year to help more homeowners who burn oil to convert to electricity. The government rebate will double to $5,000.
In a similar vein, the government will offer a $2,500 rebate to people who buy or lease an all-electric vehicle, and $1,500 for people who choose a hybrid vehicle.
No new tax increases
Finance Minister Siobhan Coady touted the budget as being good for consumers and taxpayers.
"This is also about balance — supporting families and ensuring strong financial management," she said during her budget speech Thursday at the House of Assembly.
Coady said the child-care fee cut alone will save families about $6,300 per child, compared with expenses two years ago, and will "[help] more women enter and remain in the workforce."
Coady noted the budget contains no new tax or fee increases.
The budget does contain several measures aimed at people living on fixed or limited incomes. Some of them — including a 10 per cent hike to an income supplement paid to about 162,000 people — were announced in March as part of a cost-of-living response.
Passes for the Metrobus and GoBus services in metro St. John's will now be extended to seniors who receive a guaranteed income supplement, and to youth who are in care or who receive specific youth services.
A nutrition supplement for low-income pregnant people and families with children under one will rise from $100 a month to $150 a month.
