The Saskatchewan government has now said that the tax changes promised in the election changes most likely would not be in place until July 1, 2025. (980 CJME file photo)

Sask. Affordability Act changes not expected until summer 2025

By CJME News Jan 1, 2025 | 9:30 AM

Despite hopes the provincial government’s income tax changes in the Sask. Affordability Act would be ready for the new year, they may not actually take effect until mid-summer.

The first bill the provincial government introduced in the shortened fall sitting was the Sask. Affordability Act. It included legislation to make a number of income tax changes the Sask. Party promised during the provincial election campaign.

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The bill was passed through quickly with consent from the Opposition Sask. NDP.

At the time, provincial Finance Minister Jim Reiter said he’d written to his counterparts in the federal government asking them to fast-track the changes so they could be in place for the new year.

Saskatchewan Finance Minister Jim Reiter. (Lisa Schick/980 CJME)

“We want to get this done as quickly as we can. Obviously, that was a big campaign commitment for us and people want affordability, and we’d like to deliver on that,” Reiter said.

In mid-December, the federal government responded to questions from 980 CJME, saying it would have had to be told about the income tax changes by Oct. 15 — notification later than that would make things more complicated.

On Tuesday, the provincial government said in a statement that it hadn’t gotten any formal response to its letters and as far as it understood the changes wouldn’t be in place until July 1, 2025.

What tax changes can I expect in Saskatchewan?

The changes include reducing income taxes by increasing the personal exemption as well as the spousal exemption, child exemption and senior supplement over the next four years. They would be increased by $500 a year for the next four years.

The Act will also index the income tax brackets and tax credits to keep up with inflation, and increase the low-income tax credit by five per cent each year for the next four years.

The Home Renovation Tax Credit will also be re-created — it was first introduced after the 2020 election but ended shortly after.

The legislation will also increase a number of tax credits: The Saskatchewan First-Time Homebuyers Credit, the Disability Tax Credit and a similar supplement for children with disabilities; the Caregiver Tax Credit will also increase; the Active Families Benefit will rise to $300 per child per year; and the Graduate Retention Program’s tax credit will increase to $24,000 from $20,000.

As well, the legislation will also keep the small business tax rate at one per cent — it was scheduled to go back to two per cent in 2025.

— with files from 980 CJME’s Lisa Schick and Abby Zieverink

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