Alberta 2023 Budget Highlights

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On February 28, 2023, the Alberta Minister of Finance announced Alberta’s 2023 budget. We’ve highlighted the most important things you need to know about this budget.

No Changes To Corporate or Personal Tax Rates

Budget 2023 does not include any changes to the province’s corporate tax rates or personal tax rates.

Tax Credits

The budget confirms that the government will introduce a new Agri-Processing Investment Tax Credit. This provides a 12% non-refundable tax credit on eligible capital investments of at least $10 million made on or after February 7, 2023, and unused credits can be carried forward for ten years.

The maximum allowable expenses for the Adoption Expenses Tax Credit have been increased to $18,210.

Lowered Education Property Tax

The budget decreases the mill rates used to calculate the education property tax as follows:

• Residential or farmland — $2.56 (down from $2.65) per $1,000 of equalized assessment

• Non-residential — $3.76 (down from $3.90) per $1,000 of equalized assessment.

Investments In Education, Tourism and Infrastructure

Budget 2023 makes the following investments in education, tourism and infrastructure:

  • Post-secondary education will be more affordable for students as Budget 2023 introduces reduced loan rates (to prime from the current prime plus one percent and extended repayment grace periods (now extended from six months to one year). Tuition increases will be capped at two percent as of Fall 2024.

  • $10 million over two years is committed to promoting rural tourism.

  • An $800 million investment will be made to both reduce greenhouse gas emissions and support green technology.

  • Alberta’s road and bridge network, a crucial element of its expanding economy, will receive funding of $2.3 billion over a three-year period for vital projects and programs aimed at its enhancement and expansion.

We can help!

Need help determining the impact of this year’s budget on your finances or business? Give us a call today!

Group Retirement Benefits

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Working at an organization that offers a pension plan is one of the greatest financial advantages a Canadian can enjoy. Pension plans are designed to provide retirement income and help employees reach their retirement goals and for business owners- help retain key employees.

Pension plans can offer:

  • Employer contributions

  • Forced retirement savings for employee

There are 2 main types of pension plan:

  • Defined Benefit Plan

  • Defined Contribution Plan

Defined Benefit Plan

  • Retirement income is guaranteed, contributions are not.

  • The pension amount is based on a formula that includes the employee’s earnings and years of service with the employer

  • Usually, contributions are made by the employee and employer

  • The employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members.

  • If there’s a shortfall, the employer pays the difference.

Defined Contribution Plan

  • Contributions are guaranteed, retirement income is not.

  • Usually, contributions are made by the employee and employer.

  • The employee is responsible for investing all contributions.

  • The amount available in retirement depends on how the investment performs including total contributions.

  • At retirement, the money in the account can be used to generate retirement income through purchasing an annuity or transferring the amount to a locked-in retirement income fund.

In summary, a defined benefits plan guarantees you a retirement income and a defined contribution plan guarantees contributions but not retirement income.

Talk to us, we can help.

Apply starting Friday for Canada Emergency Student Benefit! Help on the way for seniors.

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Students can apply for $1,250 through the Canada Emergency Student Benefit starting Friday

From canada.ca:

“The Canada Emergency Student Benefit (CESB) provides financial support to post-secondary students, and recent post-secondary and high school graduates who are unable to find work due to COVID-19.

This benefit is for students who do not qualify for the Canada Emergency Response Benefit (CERB) or Employment Insurance (EI).

From May to August 2020, the CESB provides a payment to eligible students of:

  • $1,250 for each 4-week period

  • $2,000 for each 4 -week period, if you have dependants or a disability”

Learn More and Apply for CESB

Seniors to receive up to $500 one-time payment

The Government of Canada will be providing help to vulnerable seniors by providing a one-time tax-free payment of $300 for seniors eligible for Old Age Security (OAS). For seniors eligible for the Guaranteed Income Supplement (GIS), they will receive an additional $200.

Learn More about Help for Seniors