The provincial government has announced the details of a new tax credit aimed at getting people more active.
The physical activity tax credit, first announced in the 2021 budget, will allow households to claim up to $2,000 of physical activity expenses, including sport and recreation registration and membership fees (online and in-person). Households can claim the Physical Activity Tax Credit on their personal income tax return beginning with the 2021 taxation year and must keep receipts to support their claim.
The province has set a target of 2031 to become one of the healthiest provinces in the country.
Premier Andrew Furey says socio-economic research has shown that incentives like this one help “nudge” people in the right direction as healthy activities now will “pay dividends” in the long term.
Taking in some soccer action at King George V Park and highlighting this government’s commitment to a healthier lifestyle.
The Physical Activity Tax credit in Budget 2021 will provide opportunities and support to people of all ages to live productive and rewarding lives! ⚽️🏃🏻♀️ pic.twitter.com/vKdozWBENC
— Andrew Furey (@FureyAndrew) June 29, 2021
He says Newfoundland and Labrador spends the most per person, per year out of any province on healthcare, yet we have the worst outcome.
Furey states that clearly the answer isn’t money, so behavior needs to change, and as a government they need to look at policy instruments like incentives to make people more healthy.
The premier acknowledged that the incentive certainly is not going to change the fiscal situation of the province from a treasury perspective, if it changes behaviors, that’s what they are after.
More information on the physical activity tax credit is available online here. Questions on how the credit will be applied can be directed to taxpolicy@gov.nl.ca or 709-729-3166.
