2010 Newfoundland and Labrador 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 Newfoundland and Labrador budget speech that was presented by the Honourable Thomas W. Marshall, Minister of Finance for the government of Newfoundland and Labrador on March 29, 2010.

ITEMS AFFECTING PWGSC COMPENSATION SYSTEMS

Personal Income Tax rates

The Budget announced a reduction in the personal income tax rates applicable to the second and third income brackets to 12.5% and 13.3% respectively from the current levels of 12.8% and 15.5%, effective July 1, 2010.

Impact: PWGSC compensation systems will be programmed to change the tax rates effective July 1, 2010.

Age Amount non refundable tax credit

The Budget announced an increase in the provincial Age Amount non refundable tax credit, for those 65 years of age or older, from $3,681 to $5,000.

Impact: It is expected that the Canada Revenue Agency (CRA) will provide employers with the adjusted tax credit amounts, which will take into consideration the first six months of 2010, by June 2010.

To review the 2010 Newfoundland and Labrador Budget documents, please visit the following Web site:

Budget 2010