Government of Saskatchewan Introduces More Affordability Measures

CANADA, December 3 - Released on December 2, 2024

The Government of Saskatchewan is taking action to ensure the province remains the most affordable place to live, work, raise a family and start a business in Canada.

Following up its commitment in the recent provincial election, the government introduced The Saskatchewan Affordability Act in the Legislative Assembly today. The Act will enhance Saskatchewan's status as the most affordable place in Canada to live, work, raise a family and start a business by implementing 13 affordability commitments.

"During the recent election campaign, we heard concerns from Saskatchewan citizens about the cost-of-living pressures they are facing today," Deputy Premier and Finance Minister Jim Reiter said. "We know these issues are not unique to our province, but we are taking action to make life more affordable for all Saskatchewan residents and families, while ensuring we still maintain a strong economy." 

The Saskatchewan Affordability Act introduces the largest personal income tax reduction in the province since 2008 by raising the personal exemption, spousal exemption, child exemptions and the seniors supplement by $500 a year, for the next four years. This is in addition to annually indexing the province's income tax brackets and basic tax credits to offset the impacts of inflation.

These changes will allow a family of four earning $100,000 to save more than $3,400 over the next four years, while two seniors with a combined income of $75,000 will save more than $3,100. Upon full implementation, over 54,000 residents will no longer be paying provincial income tax.

The Saskatchewan Low-Income Tax Credit will also increase by five per cent annually for each of the next four years, in addition to annual indexation adjustments. This will benefit more than 300,000 individuals and families in our province.

"The Saskatchewan Affordability Act will reduce income taxes for every resident, family and small business in our province," Reiter said. "It also includes additional targeted reforms that will support seniors, families with children, new post-secondary graduates, persons with disabilities, caregivers, first-time homebuyers and people undertaking home renovation projects."

This legislation will also make homeownership more affordable. For those setting down roots in their communities, the Saskatchewan First-Time Homebuyers Credit maximum benefit will increase by 50 per cent. The Home Renovation Tax Credit will allow homeowners to save up to $420 per year in home renovation expenses, while seniors undertaking home renovations will be able to save up to $525.

To help ensure Saskatchewan remains one of the best places to grow a small business, the small business tax rate will remain at one per cent. More than 35,000 small businesses in the province will benefit from this change, saving more than $50 million in corporate income tax annually. 

The Saskatchewan Affordability Act will benefit persons with disabilities and caregivers. The Disability Tax Credit and the Disability Tax Credit supplement for children under 18 will both increase by 25 per cent, in addition to indexation. The Caregiver Tax Credit will also increase by 25 per cent, in addition to indexation, which provides financial support for families who care for adult children or parents with physical or mental impairments.

Other measures in The Saskatchewan Affordability Act include:

• Doubling the Active Families Benefit, and the income threshold to qualify for that benefit, making it more affordable for more families to access children's sports, arts, cultural and recreational activities. 
• To help ensure more young people stay to live and work in Saskatchewan, the Graduate Retention Program's tax credit benefits will increase by 20 per cent. 

The commitments in The Saskatchewan Affordability Act are in addition to the more than $2 billion in affordability measures already included in each and every provincial budget. Additional affordability initiatives will be released in the 2025-26 Provincial Budget, including increasing the Personal Care Home Benefit; increasing the earned income amount for the Saskatchewan Assured Income for Disability (SAID) Program; offering a refundable tax credit toward the costs of an eligible fertility treatment; introducing the Small and Medium-Sized Enterprises Investment Tax Credit; and introducing a Class 1 commercial driver's licence training rebate.

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