2008 Nunavut 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 item, which is relative to the compensation product, was introduced in the Nunavut budget speech that was presented by the Honourable Louis Tapardjuk, Minister of Finance for the Government of Nunavut on February 20, 2008.



ITEM AFFECTING PWGSC COMPENSATION SYSTEMS

Pension Income Credit

Effective January 1, 2008 the pension income credit available to pensioners will increase from $1,000 to $2,000.

Impact: The Government of Nunavut will introduce this credit in the Fall 2008 Legislative session. Once introduced, information concerning this change will be communicated to employees paid through the Regional Pay System and the Royal Canadian Mounted Police (RCMP) Pay System. In order to take advantage of the increase, employees will be required to complete a new Nunavut TD1. Pension systems will be programmed to reflect this change.



ITEMS OF INTEREST

Volunteer Firefighters Tax Credit

Volunteer firefighters in Nunavut will be able to take advantage of a tax credit of $500 starting January 1, 2008.

Impact: We anticipate that this tax credit will be incorporated into the 2008 income tax return.

Textbook Tax Credit

Nunavut students will be eligible to claim a textbook credit of $65 per month for full-time students and $20 per month for part-time students. This credit will be effective January 1, 2008.

Impact: This credit will be incorporated into the Nunavut TD1 form. To claim this credit, students are to complete a new Nunavut TD1 form.



To review the 2008 Nunavut budget documents, please visit this site:

http://www.gov.nu.ca/finance/mainbudgets/2008.shtml