2008 Alberta Budget Impact Paper

•   This paper was prepared by the Compensation Sector, Accounting, Banking and Compensation Branch, Public Works and Government Services Canada (PWGSC). It should be noted that this document is not all encompassing. Employees may find this document informative from a personal perspective.    

•   The following items, which are relative to the compensation product, were introduced in the Alberta budget speech that was presented by the Honourable Iris Evans, Minister of Finance for the Government of Alberta on April 22, 2008.    

•   ITEMS AFFECTING PWGSC COMPENSATION SYSTEMS    

•   Alberta Health Care Premiums    
•   Effective January 1, 2009, Alberta Health Care Premiums will be eliminated.    
•   Impact: PWGSC compensation systems will be programmed to reflect this change effective January 2009. Information concerning this change will be communicated to employees paid through the Regional Pay System and the Royal Canadian Mounted Police (RCMP) Pay System. Pension systems will also be programmed to reflect this change.    

•   Personal tax credits    

•   Caregiver amount    
•   The Caregiver Tax Credit has increased from $4,355 to $9,355 effective January 1, 2008.    

•   Amount for infirm dependants age 18 or older    
•   The Infirm Dependants Tax Credit has increased from $4,355 to $9,355 effective January 1, 2008.    

•   Disability amount    
•   The Disability Tax Credit has increased from $7,466 to $12,466 effective January 1, 2008.    
•   Impact: Information concerning the changes to these tax credits will be communicated to employees paid through the Regional Pay System and the Royal Canadian Mounted Police Pay System. This information will be communicated in an Information Notice to Employees in June 2008, and posted on the Compensation Sector Web site. To take advantage of the increase, employees will be required to complete a new Alberta TD1 form. As the PWGSC Annuitant System records each tax credit shown on the TD1AB form separately, this system will be programmed to automatically increase these tax credits effective July 1, 2008.    

•   ITEMS OF INTEREST    

•   Alberta Family Employment Tax Credit    
•   The Alberta Family Employment Tax Credit will be increased 10% on July 1, 2009. This tax credit is a non-taxable amount for eligible families with children under the age of 18.    
•   Impact: Information from the Canada Child Benefits application is used to determine eligibility for this credit.    

•   OTHER    

•   Alberta's tax legislation and regulations will be amended to incorporate some of the measures announced in the February 26, 2008, Federal budget including the implementation of a new savings vehicle, a tax-free savings account (TFSA), effective for the 2009 taxation year.    

•   To review the 2008 Alberta budget documents, please visit the following site:    
•   Http://alberta.ca/budget2008/