2010 Nova Scotia 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 Nova Scotia budget speech that was presented by the Honourable Graham Steele, Minister of Finance for the Government of Nova Scotia on April 6, 2010.

ITEM AFFECTING PWGSC COMPENSATION SYSTEMS

Creation of a new tax bracket

Since January 1, 2010, the province will have a fifth personal income tax bracket. Taxable income in excess of $150,000 will be taxed at a marginal rate of 21%.

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

ITEM OF INTEREST

Harmonized Sales Tax

Effective July 1, 2010, the provincial portion of the Harmonized Sales Tax (HST) will increase from 8% to 10%, bringing the combined HST rate to 15%.

To review the 2010 Nova Scotia Budget documents, please visit the following Web site:

Budget 2010