Thank you, Mr. Chairman. Mr. Chairman, the Standing Committee on Accountability and Oversight conducted a public review of Bill 10, An Act to Amend the Income Tax Act, on March 12, 2002. The committee would like to thank the Minister of Finance and his officials for presenting the bill. The bill would increase NWT non-refundable tax credit for the personal, married, age, and disability amounts.
The bill will also implement a new minimum $250 cost of living tax credit for the 2002 and subsequent tax years. These amendments will reduce the tax burden for all NWT taxpayers.
Mr. Chairman, during discussion on the bill, the committee was concerned about the clawback from tax filers on income support and multiple filers residing in a single residence. Committee members expressed concern that income support clients may not actually realize any benefit from the new minimum $250 cost of living tax credit.
Most types of income received by income support clients are clawed back by the government under the program guidelines established by the Department of Education, Culture and Employment. The committee questioned the cost effectiveness of this amendment, as a number of low-income earners are on income support. The clawback would not render additional revenue for those that need it the most. The Minister assured the committee that the Minister of Education, Culture and Employment is evaluating potential changes to the Income Support Program.
Amendments to the Income Tax Act will provide a new minimum cost of living tax credit based on the income of the individual and his or her spouse or common law partner. Committee members were concerned that due to a shortage of affordable housing in many of our communities, in some cases many unrelated people may reside under the same roof. The committee sought clarification from the Minister on the application on the tax credit. The department advised that regardless of how many people reside in a single residence, the minimum cost of living tax credit is allocated based on the income of the individual and his or her spouse or common law partner.
Mr. Chairman, following the committee's review, a motion was carried to report Bill 10, An Act to Amend the Income Tax Act, to the Assembly as ready for committee of the whole. Additional comments or questions from members may be posed as we proceed. Thank you, Mr. Chairman.