News Release

FREDERICTON (GNB) – The provincial government is advising New Brunswickers of the benefits of a new tax credit which will maximize help for low-to-middle income families.

“In our recent budget, we chose to protect education and health care and to create a new tax credit which will provide cash payments to families to help them deal with the rising cost of living,” said Finance Minister Roger Melanson.

A new awareness campaign has been launched which will include radio and direct mail information being sent to New Brunswick households to explain the details of the new refundable credit. The Harmonized Sales Tax (HST) credit will provide a $300 payment for individuals, $300 for spouse or equivalent, and $100 per child (18 years old and under). Single parent families will receive a $300 credit for their first child.

The full HST credit will be provided to New Brunswickers with a family income of less than $35,000 per year. The credit will be reduced by two cents for every dollar of income above $35,000. This will mean that individuals with incomes of less than $50,000, or a family of two adults and two children with incomes of less than $75,000, could receive some benefit from the HST credit.

On average, households with incomes below $40,000 are expected to receive more money from the credit than they would lose as a result of the HST rate increase. The provincial government is working with the Canada Revenue Agency to have the credit paid along with the federal GST/HST credit on a quarterly basis either by direct deposit or cheque.

“This credit is designed to protect low-to-middle income households and will return about $100 million to New Brunswickers,” said Melanson. “We have budgeted about $95,000 to make New Brunswick households aware of the payments they can expect beginning in July so they can budget appropriately.”

In the 2016-17 provincial budget, the HST will be increased by two percentage points effective July 1, resulting in the same HST rate as Nova Scotia and a rate that is comparable to Quebec’s. Daily necessities such as basic groceries continue to be exempt from the HST. It should be noted, when the goods and services tax (GST) was first introduced in 1991 at seven per cent, the provincial sales tax was 11 per cent.