Implementing Budget 2022

The amendment:

• removes the authority for the Minister to issue loan guarantees under TIER Loan Guarantee program as the program no longer exists so the function is obsolete
• upholds overall government direction prohibiting the issuance of loan guarantees as they create an undesirable financial risk to government

The amendments strengthen the current legal framework and give government flexibility to make decisions in an ever-changing health environment, including:

• establishing a new regulation-making authority for health benefits for services provided by allied health professionals
• increasing financial accountability in physician claims audits and other compliance activities
• clarifying wording for the creation of benefits review committees

The amendments change the end date for the Government of Alberta’s financial commitment to align with revised Business Case for Green Line LRT project in Calgary.

• Amending the legislation extends the period of time for provincial funding by 2 years to 2029-30.
• Amending the regulation is required to implement changes to cash flows that were requested by the City of Calgary.
• There are no changes to the cash flows for the City of Edmonton.

The amendments authorize the President of Treasury Board and Minister of Finance to mandate provincial corporations, regulated funds, and other consolidated entities to participate, and hold their surplus cash in the new cash pooling structure.

• This enables government to implement a new flexible cash pooling structure that will:
  • use surplus cash held in pooled accounts to pay down provincial debt and lower debt servicing costs
  • reduce the amount of money the government has to borrow by at least $1 billion dollars and lower debt-servicing costs by a minimum of $25 million per year
  • replace an outdated and administratively complex cash pooling structure
• This change also responds to the Auditor General’s recommendation to examine the government’s current cash pooling structure and make better use of surplus cash to reduce debt.

The amendment relate to Alberta’s tax statutes: Alberta Personal Income Tax Act, Alberta Corporate Tax Act, Fuel Tax Act, Tobacco Tax Act and Tourism Levy Act.

• Amendments will implement the Budget 2022 decision to establish a new tax category for smokeless tobacco (for example, chewing tobacco), with the rate set at 27.5 cents per gram.
• Most amendments are annual technical updates, intended to ensure Alberta’s tax statutes are clear, consistent with the federal tax system and, overall, effective in supporting administration of the provincial tax system.
• Additional amendments include moving tobacco tax collection and remittance requirements from collector agreements into legislation and a requirement for online marketplaces such as Airbnb or Vrbo to collect and remit the provincial tourism levy to government on behalf of their Alberta short-term rental hosts.