2009 New Brunswick 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 New Brunswick budget speech that was presented by the Honourable Victor Boudreau, Minister of Finance for the Government of New Brunswick on March 17, 2009.


To review the 2009 New Brunswick Budget documents, please visit the following Web site:

http://www.gnb.ca/0160/budget/buddoc2008/index-e.asp

•   ITEMS AFFECTING PWGSC COMPENSATION SYSTEMS    

•   Personal Tax Rate Changes    

•   The government announced that the existing four tax rates and brackets will be reduced to two tax rates and brackets by the year 2012. The reduction will be implemented gradually beginning in 2009 and will end with two provincial tax rates, 9% and 12%, by the year 2012.
  
     

New Brunswick Tax Rates and Brackets
Tax Brackets ($)	Current Tax Rates	Revised Tax Rates effective July 1, 2009
More than - Not more than
$0 to $35,707	10.2%	9.65%
$35,707 to $71,415	15.48%	14.50%
$71,415 to $116,105	16.80%	16.00%
Over $116,105	17.95%	17.00%

•   Impact: PWGSC compensation systems will be programmed to change the tax rates effective July 1, 2009.
  
  
     
•   Personal Tax Credit Changes
  
     
•   The government announced that personal tax credit amounts will be indexed up to and including 2012.
  
     
•   Impact: As soon as the Canada Revenue Agency (CRA) provides employers with the revised tax credit amounts and implementation dates, PWGSC compensation systems will be programmed to change the basic personal amount and the spouse or common-law partner amount.
  
     
•   Information concerning the changes to the other personal tax credit amounts will be communicated to employees paid through the Regional Pay System (RPS) and the Royal Canadian Mounted Police (RCMP) Pay System. This information will be communicated in an Information Notice to Employees and posted on the Compensation Sector Web site. As the PWGSC Annuitant System records each tax credit shown on the TD1 form separately, this system will be programmed to automatically change these tax credit amounts.