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Status: Bill 32 was introduced on November 4, 2024
Ministry responsible: Treasury Board and Finance
Overview
If passed, Bill 32, the Financial Statutes Amendment Act, will amend 10 pieces of legislation. Changes would enable Albertans to access alternative financing options to help expand mortgage financing options.
Currently, members of Alberta’s Islamic community are largely unable to access traditional mortgage financing because provincially regulated financial institutions require the collection of interest on loans, which is not aligned with the principles of the Islamic faith.
Proposed changes would enable Alberta regulated financial institutions to offer alternative financing options for all qualified homebuyers, regardless of faith, with payments and costs generally consistent with traditional mortgages.
Proposed changes would include amendments to provide more support for parents who have lost a child, and standardize indexing across government to help Albertans with the cost of living by creating a consistent and stable system. In addition, a new annual adjustment system would enable a more consistent and flexible approach to determining the amount that benefits and taxes will be impacted. The legislation would also introduce a new tax on electric vehicles, as was announced in Budget 2024.
Key changes
Indexation
If passed, Bill 32, the Financial Statutes Amendment Act, will implement a new legislative framework for indexation of the tax system and social programs, requiring amendments to the following Acts:
- Alberta Personal Income Tax Act
- Assured Income for the Severely Handicapped Act
- Income and Employment Supports Act
- Seniors Benefit Act
- Alberta Housing Act
- Health Statutes Amendment Act, 2020
Proposed changes would increase social benefits and personal income tax amounts by 2% for 2025. The amendments would also establish a standard escalator for social benefits and personal income tax with a default rate of the lesser of either 2% or the change in Alberta’s Consumer Price Index (October through September year-over-year).
This change will improve alignment across programs and give government more flexibility in managing indexation and responding to emerging priorities.
If passed, Bill 32, the Financial Statutes Amendment Act, will also amend the following legislation:
Read the Bill 32 Financial Statutes Amendment Act 2024 fact sheet for a complete list of proposed changes.
Next steps
If passed, Bill 32, the Financial Statutes Amendment Act will take effect upon various dates.
Changes to the Alberta Personal Income Tax Act and other acts that implement changes to indexing would take effect on January 1, for the tax system and most social programs. Changes that impact indexing for the Alberta Child and Family Benefit will come into effect on July 1, 2025, coinciding with the start of the 2025 benefit year.
Changes to the Alberta Personal Income Tax Act that extend benefits under the Alberta Child and Family Benefit would come into effect on January 1, 2025, and Albertans would first see the impacts of this change on the quarterly payment sent out in February 2025.
Changes to the Credit Union Act and ATB Financial Act would be available to financial institutions to offer in 2025.
Changes to the Fuel Tax Act would come into effect on proclamation with a possible start date early in early 2025.
News
- Updated fiscal statutes benefit Albertans (November 4, 2024)