The 2018 budget for Newfoundland and Labrador was announced by its Finance Minister Tom Osborne and features very few new spending commitments, taxes or cuts, with the focus being balancing the books and managing and coping with what Obsorne refers to as a “tough phase” in its finances.
The province aims to balance the budget within the next four years, from a deficit of $812,000,000 in the 2017-18 tax year to a surplus of $56,000,000 in the 2022-23 tax year.
Provincial Payroll Tax
The exemption threshold for payroll tax will be increased in this budget from $1.2 million to $1.3 million, with employers whose annual payroll is below the threshold not required to pay the tax.
Tax on automobile insurance will be reduced to 13% from January 1, 2019 and will continue to reduce by an extra 1% across the following 3 years to 2022.
Search and Rescue Volunteer Tax Credit
A new tax credit will come into force for first responders, whereby such volunteers will be eligible to claim a $3,000 non-refundable tax credit from January 1, 2019.