Last updated: March 27 2009
Low income earners and small businesses were the main beneficiaries of the NL Budget released for 2009.
Low-Income Reduction Program
The budget announced income threshold amounts under the Low-Income Reduction program, introduced in 2005, has been increased for both individuals and families. For individuals the income threshold was increased to $15,911 and for families the threshold increased to $26,625.
Dividend Tax Credit
The dividend tax credit rate on eligible dividends was increased to 9.75% from 6.65% to keep the rate in line with that of other provinces.
LSVCC
Effective April 1, 2009, the provincial tax credit rate for an investment in a registered LSVCC will be increased from 15% to 20% of the amount invested, subject to a maximum annual investment limit of $10,000 (previous limit $5,000). This would be in addition to the 15% Federal income tax credit.
Small Business Threshold and Rate