As Alberta faces uncertain economic times and tariff threats, proposed amendments in the Financial Statutes Amendment Act, 2025 would introduce a new eight per cent personal tax bracket on income up to $60,000, meaning individual taxpayers will save up to $750 in 2025 while two-income families will see savings of up to $1,500. Overall, this personal income tax cut is expected to save Albertans $1.2 billion in 2025, with savings rising to $1.4 billion in 2028.
In addition, proposed amendments to the Sustainable Fiscal Planning and Reporting Act will give the province more flexibility to direct surplus cash to improve Alberta’s net financial position. Amendments would update the rules in the province’s fiscal framework so that during good years 50 per cent of surplus cash could be used to invest in the Alberta Heritage Savings Trust Fund, instead of mandating it towards debt alone. The remaining 50 per cent of any surplus cash would continue to be saved and could be used to pay debt, invest in the Heritage Fund or spend on one-time initiatives that don’t increase operating costs.
“This legislation sets out the new cuts to personal income taxes, which is keeping an important promise we made to Albertans and makes sure taxpayers keep more of their hard-earned money. At the same time, we would have more flexibility to boost the Heritage Fund and build a more secure future for our children and grandchildren.”
The proposed legislation would also amend the Legal Profession Act to increase the statutory contribution by the Alberta Law Foundation of interest earned on lawyers’ trust accounts to Legal Aid Alberta to 50 per cent, up from 25 per cent. This would provide the necessary flexibility to provide vulnerable Albertans timely access to legal aid services. Amendments would also require ministerial approval of all Alberta Law Foundation grants, funding commitments and gifts over $250,000 to provide greater government oversight and awareness of the Alberta Law Foundation’s mandate to advance access to justice.
“Albertans expect us to be responsible with their tax dollars while finding efficiencies to ensure they have access to an affordable justice system. These amendments would help align the work being done on improving access to justice that is underway across the province.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.