Bill SK-1 Saskatchewan Affordability Act
Status: Royal Assent — March 31, 2025. This bill is now law, retroactive to January 1, 2025. Tell us how YOU would have voted.
WHO GAINS POWER
- Government gains authority to set, by regulation, the percentage used to calculate the clawback rate for the low-income tax credit (s.39(6.3)) — the Legislature does not vote on this number
- Government gains authority to prescribe, by regulation, the maximum graduate retention program benefit — and can set different maximums for different programs and different graduation years
- The Minister gains authority to decide how to split home renovation tax credits between individuals who cannot agree
WHO LOSES POWER
- The Legislature does not vote on the clawback rate for the low-income tax credit for 2026–2028 — that number is set by regulation
- The Legislature does not vote on graduate retention program maximums going forward — those are set by regulation
WHO GAINS MONEY
- All Saskatchewan taxpayers — basic personal amount rises from $17,661 to $19,491 in 2025, then increases by $500/year plus inflation through 2028, then inflation-only after that; means the first ~$19,491 of income is tax-free in 2025
- Spouses and common-law partners — spousal credit rises on the same schedule as the basic personal amount
- Single parents — equivalent-to-spouse credit rises on the same schedule
- Seniors — senior supplementary credit rises from $1,421 to $2,028 in 2025, then increases by $500/year plus inflation through 2028
- People with disabilities — disability credit base rises to $13,986 in 2025, indexed to inflation after that; children with disabilities get an additional top-up
- Caregivers — in-home care of relative credit rises, indexed to inflation from 2026
- Infirm dependants — infirm dependant credit rises, indexed to inflation from 2026
- Families with children — dependent child credit rises to $7,704 per child in 2025, then $500/year plus inflation through 2028
- Low-income earners — low-income tax credit base amounts rise significantly; single adults from $429, families proportionally higher, with 5% annual boost on top of inflation for 2026–2028
- Homeowners — new home renovation tax credit: up to $5,000 in eligible expenses (max $6,000 for seniors 65+), with a $1,000 deductible; applies from October 1, 2024 onward; excludes furniture, appliances, hot tubs, tools, maintenance, snow removal, yard care, pool cleaning and audio-visual electronics
- First-time home buyers — first home buyer's credit threshold rises from $10,000 to $15,000
- Graduate retention program recipients — maximum benefit rises from $20,000 to $24,000
- Active families — active families benefit rises to $300/child/year ($400 for children with disabilities) for 2025 and beyond
- Low-income renters — rental housing supplement extended indefinitely (end date removed)
WHO LOSES MONEY
- Higher-income earners see the low-income tax credit clawed back at a rate set by regulation — the exact threshold and rate for 2026–2028 are not fixed in the law
- Homeowners cannot claim the renovation credit for furniture, appliances, hot tubs, tools, maintenance, snow removal, yard care, pool cleaning or audio-visual electronics
THE CATCH
- Nearly every dollar amount in this bill is set to increase automatically by inflation plus $500/year through 2028 — after that, inflation-only indexing kicks in; the Legislature does not vote on these annual increases
- The clawback rate and threshold for the low-income tax credit (2026–2028) are set entirely by regulation — the Legislature does not vote on who loses the credit or how fast
- Graduate retention program maximums are now fully set by regulation — the Legislature does not vote on the maximum benefit amount or which programs qualify
- The home renovation credit is retroactive to October 1, 2024 — expenses already incurred before this bill passed may qualify
- The bill is retroactive to January 1, 2025 — it rewrites tax obligations for a year already underway at the time of passage
⚠️ The clawback rate for the low-income tax credit is set by regulation — the Legislature does not vote on the income level at which low-income earners begin losing this credit or how fast they lose it.
⚠️ Graduate retention program maximums are now fully delegated to regulation — the Legislature does not vote on the maximum benefit or which programs qualify for which amounts.
⚠️ Automatic annual increases are built into the law — the Legislature does not vote on the $500/year boost or the inflation adjustments; they happen automatically.
⚠️ This Act is retroactive — it rewrites tax law for January 1 to March 31, 2025, a period during which the law had not yet passed.
[Source: Saskatchewan Legislature — Bill 1, The Saskatchewan Affordability Act, 30th Legislature, 1st Session; Royal Assent March 31, 2025]