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Part of New and proposed legislation

Updating financial laws

Bill 32 would expand access to alternative finance mortgages and update taxes and benefits.

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:

  • Alberta Personal Income Tax Act

    Proposed changes would:

    • align the Alberta Child and Family Benefit with federal changes under the Canada Child Benefit program, which would allow parents of deceased children to receive benefit payments for the 6 months after their child passes away
    • align Alberta with how other provinces tax individuals with a specific type of income, known as split income, who also pay taxes in more than one province

  • Credit Union Act, ATB Financial Act and Land Titles Act

    Proposed changes would:

    • make Alberta the first jurisdiction in Canada to enact legislative and regulatory changes that explicitly permit alternative finance mortgages through provincially regulated financial institutions in Canada
    • enable Alberta’s Islamic community to buy a home in accordance with their faith, since currently financial institutions require the collection of interest on loans, which is not aligned with the principles of the Islamic faith
    • enable all Albertans, regardless of faith, to access these new mortgage products
    • amend the Land Titles Act to ensure the same land title levies are paid for alternative finance mortgages as they are for conventional mortgages

  • Fuel Tax Act

    Proposed changes would:

    • implement an electric vehicle tax of $200 annually
    • establish the rules for the application and collection of the tax 
    • include other provisions for the administration of the tax, including rules for refunds and exemptions for governments, diplomats and First Nations bands and individuals, as well as bands with a registered address on reserve

    This is in line with what drivers of a typical internal combustion engine vehicle pay in fuel tax and is a fair way for all drivers to contribute to public services, such as keeping our roads and highways safe and smooth.

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.

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