The Manitoba government has introduced legislation required to implement Budget 2023, which provides historic help for Manitobans and reinvests every cent of new revenue to help Manitobans make ends meet and strengthens services they depend on. This has been accomplished while keeping the province on track to eliminate the deficit, Finance Minister Cliff Cullen announced today.
“Over the last 12 months, Manitoba’s economy has outperformed expectations and under the strong leadership of Premier Heather Stefanson more Manitobans are working than ever before,” said Cullen. “Budget 2023 provides unprecedented financial support that will lead to safer streets, stronger communities, the healing of our health-care system, and new opportunities for all Manitobans. We are delivering historic investments that will help the economy grow and we are confident Manitoba’s future looks bright.”
The act will make the necessary amendments to the Income Tax Act including:
The Health and Post-Secondary Education Tax Levy Act will be amended to increase the exemption threshold for the health and post-secondary education tax levy (also known as the payroll tax) to $2.25 million from $2 million and increasing the threshold below which the lower effective rate applies to $4.5 million from $4 million.
The minister noted that if fiscal updates show better than expected revenue performance the Manitoba government will implement the first rate reduction in 25 years in the tax levy for 2024, to 4.0 per cent from 4.3 per cent on payroll between $2.25 million and $4.5 million and to 2.0 percent from 2.15 per cent on payroll exceeding $4.5 million.
The minister noted that to enact the majority of the taxation measures, historic investments into vital services, and additional financial relief outlined in Budget 2023, the budget will need to be passed before the end of the legislative session on June 1.
Additionally, the School Tax Rebate for residential and farm properties increases to 50 per cent in 2023 from 37.5 per cent in 2022. The average rebate to a homeowner will increase to $774 in 2023 from $581 in 2022. Changes to the School Tax Rebate were first passed as part of Budget 2022. Rebates are delivered the month in which municipal property taxes are due and will begin being received in Winnipeg and Brandon in June.
“These tax reductions and tax credit enhancements will provide tax relief to Manitoba taxpayers, encourage investment, and improve Manitoba's competitiveness as a place to live, work and do business,” said Cullen. “Our government wants to thank all Manitobans for their input during our pre-budget engagements, as well as the Premier’s Economic Advisory Council on Competitiveness and the Tax Competitiveness Working Group for their advice on these measures. Further work with these groups will continue to advance our ongoing efforts to modernize Manitoba’s tax system, making it more affordable and more competitive with other provinces.”
Measures in Budget 2023 including the school tax rebate, changes to the Provincial Basic Personal Amount and updates to tax bracket thresholds are expected to provide over $5,500 in savings for the average family by 2024, the minister noted, adding if the budget implementation legislation does pass by June 1 that Manitobans will see an immediate addition of approximately $50 per month to their paycheques starting in July.
In addition, administrative changes are being made to the Tax Administration and Miscellaneous Taxes Act, the Financial Administration Act, the Executive Government Organization Act and the Community Child Care Standards Act.
For more information on Budget 2023 measures, visit https://www.manitoba.ca/.
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For more information:
Public information, contact Manitoba Government Inquiry: 1-866-626-4862 or 204-945-3744.
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Media requests for ministerial comment, contact Communications and Stakeholder Relations: 204-451-7109.
