News Release Archive
NEWS RELEASE (CNS935) -->> FINANCE--DIRECT ASSISTANCE PROGRAM FINANCE--DIRECT ASSISTANCE PROGRAM ----------------------------------------------------------------- The release of details on an $8 million direct assistance program for the province's working poor finalizes what now stands as a $33 million annual government commitment to low income Nova Scotians, Finance Minister William Gillis said today. The $8 million direct assistance program is part of a pledge made in the 1996/97 provincial budget to implement tax reforms which benefit all Nova Scotians, Mr. Gillis said. Many Nova Scotians will benefit from the 3.4 per cent decrease in their income tax next July 1, but many of those who do not make enough money to pay income tax, need special assistance, he said. "Around the same time that most Nova Scotians will see their pay cheques grow, many of the working poor, who do not pay income tax, will be receiving their cheques in the mail," the minister said. Mr. Gillis said that under the direct assistance program, eligible individuals will receive annual payments of $90, whereas eligible families will receive $125 annually. The new program will apply to most single people over the age of 19, with a net income below $9,500 per year. Families earning up to $16,500 qualify for $125 in direct assistance. People making more than these amounts become eligible for the low income tax reduction program. Many seniors will benefit, said the minister, because federal government payments of Guaranteed Income Supplements will not be counted in determining income. An estimated 77,000 people will be eligible. Application is limited to individuals and families not receiving significant benefits from other provincial government assistance programs. The new program adds to the $25 million package started in 1994 when the government offered $13 million in tax assistance to 155,000 low income Nova Scotians. Another $12 million was added to enhance the package in the 1996/97 budget, thus helping an additional 65,000 people. "Taken together, these programs ensure that low income individuals and families share in our stronger economy. We have balanced the books, we are lowering taxes and this program make sure everyone benefits," the minister said. Individuals who have access to other government programs, such as social assistance, students or people supported by the province in long term care facilities will, in most cases, not be eligible. Exceptions are made for students who had been in school for less than four months in the previous year, and social assistance recipients who had received benefits for less than three months the previous year. A copy of the previous year's income tax return will be used to verify eligibility. Application forms will be available in Access Nova Scotia outlets and other public locations next spring. The program will be administered by the Department of Business and Consumer Services. A help line, explaining details, will begin in January, 1997. -30- Contact: Bruce Cameron 902-424-8787 NOTE TO EDITORS: Mr. Gillis will be available to the media this morning at the House of Assembly. trp Dec. 13, 1996 - 9:26 a.m.