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Federal budget increases Northern Living Allowance

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The Northern Living Allowance is going up. In the federal budget, the government proposed upping the maximum daily residency deduction from $16.50 to $22.

People who live in a prescribed zone for more than six months can claim the Northern Residents Deduction. The Peace Country falls in the Intermediate Zone, so people living in Grande Prairie can deduct half of the maximum amount.

The Liberals note that the change is intended to help attract skilled workers to northern and isolated communities. It’s expected to cost them roughly $255 million in revenue between 2015 and 2021.

The change is retroactive to January 1st of this year.

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