Banff 
Alberta announced further details of the legislative changes included in Bill 2, Inflation Relief Statutes Amendment Act, 2022 which was outlined in the provincial address by premier Danielle Smith in November.
Canadian Tourism Commission
As per the news release, if passed, the legislation and supporting regulations will enable the expansion of utility rebates, electricity price protection over the winter, personal income tax indexation retroactive to the 2022 tax year, full suspension of the provincial fuel tax, and delivery of upcoming targeted relief payments to families, seniors and vulnerable Albertans.
Bill 2, the Inflation Relief Statutes Amendment Act, 2022, and other regulatory amendments were introduced in the legislature today and include:
$600 for Children Under 18 and Seniors:
$600 in relief payments will be distributed to seniors and families with dependent children under 18 years of age with household incomes below $180,000 per year.
-
- Starting January 2023, eligible families will receive six monthly payments of $100, for a total of $600 per dependent child under 18 years of age.
- Starting January 2023, eligible seniors will receive six monthly payments of $100, for a total of $600.
Further details will be announced on how and when to apply for $600 in relief payments will be announced soon.
Targeted relief payments to Albertans collecting AISH, PDD and Income Support:
The bill also includes targeted relief payments to vulnerable Albertans collecting Assured Income for the Severely Handicapped (AISH), Persons with Developmental Disabilities (PDD) and Income Support. Further details will be announced when they will receive their payments will be announced soon.
Indexing personal income taxes:
Alberta’s basic personal amount will be indexed for inflation:
-
- Alberta’s basic personal amount will increase to $19,814 from $19,369 for 2022, an increase of 2.3 per cent.
- Other credit amounts and tax bracket thresholds will also rise by the same percentage.
- Given the higher rates of inflation in late 2021 and 2022, these credit amounts and tax bracket thresholds will increase by six per cent for 2023, bringing the basic personal amount to $21,003.
An increase in basic personal amounts and indexing rates to inflation means that many Albertans will receive a higher refund or owe less tax when they file their 2022 taxes. They will also benefit in 2023 through lower tax withholdings on their paycheques.
As per the news release, this will also lead to an additional 80,000 to 95,000 Albertans paying no provincial personal income tax by 2023, on top of the approximately 1.3 million tax filers who already pay no provincial personal income tax.
Indexing the Alberta Child and Family Benefit to inflation:
As previously announced, Alberta Child and Family Benefit will be indexed to inflation.
-
- This will increase the per-child amounts and phase-out thresholds by six per cent effective January 2023. Recipients will receive the increased benefits beginning with the February payment.
- The increase to the maximum annual benefit, based on whether a family has one to four or more children, follows:
- one child – $120
- two children – $198
- three children – $260
- four or more children – $307
Re-indexing AISH, Income Support and the Alberta Seniors Benefit:
On Jan. 1, 2023, benefit rates will increase by six per cent to match the rate of inflation for 2022.
-
- AISH and Income Support clients will see this increase on their Dec. 22 payment for January.
- Alberta Seniors Benefit clients will see the increase on their Jan. 25 payment.
- Alberta Child and Family Benefit clients will see the increase on their February quarterly payment.
Temporary regulated rate option (RRO) electricity price stability:
-
- Consumers who purchase power through the regulated rate option (RRO) will benefit from temporary price relief through a 13.5 cent per kilowatt hour ceiling in January, February and March 2023.
- Electricity costs above the temporary ceiling will be deferred and spread over lower-rate months, with temporary zero-interest loans provided to RRO providers if needed to assist with this deferral.
- In 2023, the government will evaluate the RRO to ensure electricity is stable and affordable for Alberta families, farms and small businesses.
Expanded electricity rebates:
-
- About 1.9 million homes, farms and businesses will receive $75 credits on their January and February bills, followed by $25 credits in March and April.
- Eligibility criteria remains unchanged.
Natural gas price protection:
-
- Regulation amendments will be tabled in early 2023 enhancing the natural gas rebate program beyond its current March 30, 2023, end date to provide permanent natural gas price protection.
Fuel relief:
-
- Alberta’s government will pause the collection of the full 13-cent provincial fuel tax on gasoline and diesel between Jan. 1 and June 30, 2023, regardless of oil prices.
- After June 2023, Albertans will continue to benefit from fuel tax relief whenever the average oil prices during each quarter’s determination period are above $80 per barrel, according to the current staged approach.
As per the news release, Alberta’s Affordability Action Plan is the largest of its kind in Canada, providing $2.8 billion in broad-based and targeted relief to Albertans and their families, farms and small businesses.
Further Information is available here.
