Alberta Treasury Board President and Finance Minister Nate Horner has proposed amendments to tax legislation to ensure it remains clear and consistent. “Keeping our tax legislation up to date is essential to maintaining Alberta’s low-tax environment and minimizing red tape,” said Horner in a Wednesday press release. “The proposed amendments would help to create further consistency and clarity in Alberta’s tax system, which continues to play a key role in our successful efforts to attract investment and new residents to the province.”The Alberta government said a well-functioning tax system is a fundamental part of the Alberta Advantage, which sees people and businesses pay the lowest overall taxes in Canada. In 2023-2024, people and businesses would pay at least $20 billion more in taxes if Alberta had the same tax system as any other province. To ensure Alberta maintains low taxes, it said the Tax Statutes Amendment Act proposes legislative amendments that would help formalize a key part of its commitment to affordability, provide clarity around the collection and remittance of the Tourism Levy and update technical and administrative aspects of the tax system. Alberta Affordability and Utilities Minister Nathan Neudorf said pausing the fuel tax has saved Albertans $530 million, and this has played a major role in keeping inflation below the national average. “This runs counter to the NDP who brought in a carbon tax when they were in power,” said Neudorf.“The continuation of this pause to the end of the year will make life more affordable for Albertans.”Alberta Tourism and Sport Minister Joseph Schow called the Tourism Levy “crucial for the success of Alberta's tourism industry and helps ensure that our province remains the best destination in the world.” “We have listened to industry leaders and the proposed amendment will provide consistency for our tourism sector by ensuring that they have the tools they need to collect the Levy in an equitable and fair manner,” said Schow. If passed, the Alberta government said the Tax Statutes Amendment Act would legislate the extension of the fuel tax pause to the end of 2023. It said it would amend the Alberta Tourism Levy Act to align with current administrative practices and set rules for online brokers in the tourism industry to collect and remit the Tourism Levy, with additional details to follow in regulation.It will make technical amendments to the Alberta Personal Income Tax Act and the Alberta Corporate Tax Act to reflect existing policies and align with changes from the Canadian government. The Alberta government introduced legislation that would protect people and businesses against future tax rate increases on Monday. READ MORE: Alberta government tables bill to protect against future tax hikes“Albertans are not interested in higher taxes and that’s one of the reasons they elected us in the spring: we promised to reduce the taxes they pay and protect them from future tax increases,” said Alberta Premier Danielle Smith. “We are building a strong economy and the stronger that economy is, the higher tax revenue we receive, all while keeping taxes low.” While the Alberta government will be moving forward with changes to tax laws, Horner proposed legislation to make it easier for public sector employers to retain and attract talent with a new, flexible compensation model. “This legislation is long overdue and would alleviate the challenges public sector employers have been facing for years,” said Horner. “Reducing barriers will help recruit and retain staff in the public sector.” The Alberta government said it is home to important public institutions, including post-secondaries and health services. To ensure it remains competitive and can attract talent needed to improve these public institutions, it has to offer appropriate, competitive salaries. Under the Alberta Public Sector Employer Amendment Act, it said the new model would streamline and harmonize government’s direction for non-union compensation across the public sector, ensuring unionized and out-of-scope employees receive comparable pay for comparable work. If passed, it said the act would affect entities governed by the Reform of Agencies, Boards and Commissions Compensation Regulation. The current regulation does not account for inflation and evolving labour market conditions. It would change the compensation governance structure for non-union employees at Alberta Health Services and Covenant Health; post-secondary institutions, except independent academic institutions; and some public agencies, including the Alberta Gaming, Liquor and Cannabis Commission, Alberta Innovates, Alberta Pension Services Corporation, Special Areas Board, Travel Alberta and the Workers’ Compensation Board. The Public Sector Employer Amendment Act would ensure strong government oversight continues, as employers would be required to provide their compensation plans for approval by Alberta Treasury Board and Finance. Alberta government employees enjoy premium wages and generous benefits compared to similar private sector positions, according to a 2022 study conducted by the Fraser Institute. READ MORE: Alberta government workers have higher pay, better benefits than private sector“At a time when governments are facing serious fiscal pressures, bringing government sector compensation in line with the private sector would help reduce costs without necessarily affecting services,” said Fraser Institute senior fellow Ben Eisen. The Fraser Institute said Alberta government worker wages were 23.1% higher on average than those in the private sector in 2021.
