Over the past several months, the cost of living has been increasing at its fastest pace in decades. The cost of food, gas, shelter and other household goods have all risen significantly and Manitobans are feeling the squeeze. To help families respond to the financial pressures they are experiencing, our provincial government has created the Family Affordability Package.
The Family Affordability Package is a targeted approach to the delivery of affordability benefits, specifically focusing on families with children, seniors on fixed income, and the most vulnerable Manitobans. Families with a household income of less than $175,000 a year will receive $250 for their first child and $200 for each additional child. Low-income seniors who claimed the Education Property Tax Credit and have an income of less than $40,000 will receive a $300 affordability benefit this fall. Manitoba seniors need financial relief now more than ever, and our government is stepping up to help them meet their needs. Our government also recognizes that Manitobans on Employment and Income Assistance need additional support as the everyday cost of living increases. We are responding with the first increase to the basic needs rate in nearly 20 years, providing EIA general assistance clients without dependent children an extra $50 per adult each month while also increasing benefits for all EIA disability clients.
In addition to these measures, our government has increased the Education Property Tax Rebate from 25 per cent to 37.5 per cent in Budget 2022, providing 450,000 Manitobans who pay education property taxes with an additional $581 this year alone. Next year, the rebate will increase to 50 per cent for homeowners and farmers, while remaining at 10 per cent for businesses. This rebate will be the largest tax relief measure in Manitoba’s history once fully implemented in 2023, achieved while maintaining record investments in public education. At the same time, we have implemented a Residential Renters Credit, providing benefits to 45,000 more households. Finally, Manitoba Public Insurance has already provided $500 million in rebates to drivers, sending out cheques averaging over $700. These measures help all Manitobans with the challenges of inflation.
The Family Affordability Package is just the latest step in our government’s efforts to make life more affordable for Manitobans. Since forming government in 2016, we have introduced tax relief worth over $1 billion, putting $2,400 back in the pocket of the average Manitoban. In a family of two, that equates to nearly $5,000 in tax and fee savings every year. Some of the tax measures we have implemented to help all Manitobans keep more of their hard-earned money include:
• lowering the PST from eight per cent to seven per cent;
• indexing the Basic Personal Amount and all income tax brackets;
• eliminating the sales tax on property insurance, personal services, the preparation of wills, and the preparation of personal income tax returns;
• eliminating probate fees; and
• reducing vehicle registration fees by 30 per cent.
Our government understands that Manitoban families and seniors are feeling the pressures of rising costs now and we are taking action to help now, cheques will be mailed to Manitoba households this week. If you have any further questions about the program, I encourage you to visit the Family Affordability Package webpage on the Manitoba government website which has been designed to help answer any questions you may have.
Cameron Friesen is the MLA for Morden-Winkler and Manitoba’s finance minister.
