| Newfoundland and Labrador Association for Community Living P.O. Box 8414 St. John’s, NL A1B 3N7 Tel: (709) 722-0790 Fax: (709) 722-1325 Toll Free: 1-800-701-8511 Email: nlacl@nf.aibn.com |
MEDIA RELEASE
FOR IMMEDIATE RELEASE
INDIVIDUALS WITH DISABILITIES TO BENEFIT FROM NEWLY ANNOUNCED SAVINGS AND TAX PROGRAMS
(April 3, 2008 – St. John’s) The recent announcement by the provincial government to permit families to use the Registered Disability Savings Plan (RDSP) without losing provincial income or disability supports is a positive life changing event for many families. This is the reaction from Ray McIsaac, President of the Newfoundland and Labrador Association for Community Living (NLACL), a parent of four, two of whom are adults with autism.
Newfoundland and Labrador is the second province in Canada to allow individuals to fully benefit from the recently proclaimed Canada Registered Disability Savings Plan (RDSP) without claw-backs. British Columbia is the other province taking early leadership on this critical issue. It is hoped this early acceptance will have a ripple effect and inspire other provinces and territories to adopt similar measures thereby empowering families to plan for the future.
Parents and families now have two significant opportunities to plan financially for a time when they are no longer living or are unable to act as primary care givers. In addition to the RDSP the province also allows funds in Support Trusts to be exempt from means-testing of income or disability supports such as social assistance and home support. The goal of both these measures is to encourage planning and help families deal with the exceptional financial costs associated with disability.
A second measure announced by the provincial government supports the NLACL to provide individuals and families with plain language information on how to establish these Plans and Trusts and to explore how families can use savings, insurance and estate planning to secure the future financial security of their loved ones.
People who qualify for the Federal Disability Tax Credit (DTC) in the year in which contributions to the plan are made are eligible for the RDSP. NLACL stresses the importance of individuals with disabilities and families exploring their eligibility for these and other valuable tax credits. In addition to savings features the federal government also provides free annual low income bonds and grants available over the life of the plan. Individuals earning under $20,833 a year will qualify for an annual $1000 bond over the course of 20 years. For individuals who are able to invest in the plan, total government bonds and matching contributions of $90,000 can be realized over the course of 20 years.
The NLACL is also very encouraged by the newly announced Working Income Tax Benefit (WITB) which provides low income earners and persons with disabilities with a $500 tax refund.
Melanie Thomas, Executive Director of NLACL says people who would like to get more information should call Darlene Nash at 1-800-701-8511 to be placed on a provincial list serve or to receive information and updates on the RDSP and related initiatives via mail.
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For more information contact:
Melanie Thomas, Executive Director
NL Association for Community Living
Tel: 709-722-0790
