$500 affordability cheque distribution to begin week of Nov. 14: province

The distribution of $500 affordability cheques from the Saskatchewan government will begin the week of Nov. 14, the province said in a news release.

The province said approximately 900,000 cheques will be delivered, as part of the Four-Point Affordability Plan.

All Saskatchewan residents who are 18 or older as of Dec. 31, 2022, who has filed a tax return in Saskatchewan for the 2021 tax year will receive a cheque, the province said.

Known as the Saskatchewan Affordability Tax Credit (SATC) the province said the aim is to help Sask. people facing rising costs due to inflation.

Speaking to reporters on Wednesday, Finance Minister Donna Harpauer said there was a lot of discussion as to what the best way to deal with the windfall revenue would be, ultimately deciding on the affordability cheques.

“I’ve been very firm that we did not want to build it into our base ongoing operating funding because we’ve done that in the past where we relied too much on resource revenue and then when resources fall, we are scrambling for how we pay for the operations,” she said.

“For the cheque, we just thought that the resource belongs to everyone, and the quickest way is that everyone will benefit from the resource that they own.”

Premier Scott Moe first announced the distribution of the cheques in a video posted to his social media accounts on Aug. 22. 

The Four-Point Affordability Plan also includes the exclusion of gym and fitness memberships and some recreational activities from the PST expansion put into place on Oct. 1, 2022.

Harpauer noted the provincial government reduced it’s debt by $1 billion and will not have to borrow an additional $700 million they thought they would have to at budget time.

SMALL BUSINESS TAX RATE

The first reading of legislation which would allow for the government to extend keeping the small business tax at zero per cent for the second year also took place on Wednesday.

“That’s to help them recover even more from the slowdown that they experienced through COVID,” Harpauer told reporters.

About 31,000 incorporated small businesses will benefit from the initiative, with small businesses saving an additional $93 million over the next three years, according to a news release.

“We’ve been working with the New Democrats and given them information on the bill and hopefully they will help us pass it in the legislation,” Harpauer said.

The small business tax rate is expected to go back up to two per cent on July 1, 2024.

For more information on the SATC, visit the Government of Saskatchewan’s website.