2007 Nova Scotia Budget Impact Paper

The 2007 Nova Scotia budget that was presented by the Honourable Michael Baker, Minister of Finance for the province of Nova Scotia, on March 23, 2007, was reviewed and contained no new income tax measures affecting federal public service pay or pension payments. However, there are some personal tax measures that employees may find informative from a personal perspective.

ITEMS OF INTEREST

Graduate Tax Credit

Effective January 1, 2008, the non-refundable Graduate Tax Credit will increase from $1,000 to $2,000.

Impact: This tax credit will be incorporated into the 2008 income tax return.

Volunteer Firefighters Tax Credit

The budget introduced a new $250 refundable tax credit for volunteer firefighters effective for the 2007 taxation year. This tax credit will increase to $375 in 2008 and to $500 in 2009.

Impact: This tax credit will be incorporated into the 2007 income tax return.

Previously Announced Measures

The basic personal amount tax credit will be increased by $250 a year over the next four years.

Other non refundable tax credits will be increased by 3.46% a year over the next four years.

To review the 2007 Nova Scotia budget documents, please visit this site: