Alberta Budget 2015: Tax credits expanded for low-income families
CALGARY – The Alberta government announced some relief for low-income families in its 2015 budget on Thursday.
A new refundable tax credit for working families as well as an increase to the current Alberta Family Employment Tax Credit (AFETC) will start July 1, 2016.
FULL COVERAGE: Alberta Budget 2015
Called the Alberta Working Family Supplement (AWFS), the new credit applies to families earning between $2,760 and $41,220.
Those with one child are eligible for up to $1,100 each year, plus as much as $550 more for any additional children up to a maximum of $2,750.
The government estimates this will provide an additional $85 million each year to about 75,000 working families.
As for the AFETC, the rate at which benefits are phased in will be increased from the current 8 per cent to 11 per cent on working income over $2,760. The phase-out threshold will also go up from $36,778 to $41,250, “allowing families to earn more before these benefits start to phase out,” according to the budget’s tax plan.
Benefit amounts are as follows with the new programs:
The government estimates the changes will provide about $25 million in additional support each year for lower- and middle-income families.
Families now eligible for AFETC will be automatically enrolled in the new AWFS, which will be indexed to inflation each year. Information on when AWFS payments will be made has not yet been released.
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