Residents of P.E.I. with an annual net income up to $100,000 will be getting $500 tax-free in relief support from the provincial government early in the new year, Premier Dennis King and Finance Minister Mark McLane announced Monday. Anyone with a net income of $100,000-$125,000 will receive a pro-rated payment.
For couples and single parents with a net income up to $100,000, there will be a $1,000 tax-free payment — and a pro-rated payment for net incomes of $100,000-$145,000.
The $58-million fund is the largest financial relief package in the province's history, according to the premier. More than 117,000 Island residents will benefit.
"I've always said putting money in the pockets of Islanders is never a bad thing. They spend it locally and circles throughout the economy and we've certainly seen that," King said.
The money is in addition to the $250 and $500 payments administered through the Red Cross.
However, the new payment will be issued through the Canada Revenue Agency. There is no need to sign up, but Islanders must have filed their 2021 tax return with the CRA. Those who are not subscribed to direct deposit will receive their cheque in the mail.
Outperformed budget projections
King said the province has outperformed its budget projections, and is in a position to give money back to Islanders without raising taxes. He said the money is intended to help Islanders deal with rising inflation and costs associated with post-tropical storm Fiona.
"There's never been a time where Islanders need support as much as they do now. We are grateful to be in a positive economic position to make these investments."
More financial relief announcements are expected in the coming days for social assistance clients, as well as expanded programs for home heating, King said.