Alberta’s economy has recovered strongly, but many Albertans are struggling to heat their homes and feed their families, and the government wants to help. The legislative changes included in the Inflation Relief Statutes Amendment Act, 2022 would enable the government to deliver timely, effective cost-of-living supports and inflation relief to Albertans.

If passed, the legislation and supporting regulations will enable the expansion of utility rebates, electricity price protection over the winter, personal income tax indexation retroactive to the 2022 tax year, full suspension of the provincial fuel tax, and delivery of upcoming targeted relief payments to families, seniors and vulnerable Albertans. These measures make up the Alberta government’s Affordability Action Plan.

Alberta’s Affordability Action Plan is the largest of its kind in Canada, providing $2.8 billion in broad-based and targeted relief to Albertans and their families, farms and small businesses.

“Affordability is the primary challenge facing Albertans today. Our Affordability Action Plan and the enabling legislation and regulations empower our government to provide immediate broad-based relief and targeted supports to families, seniors and vulnerable Albertans when and where they need it.”

“Our focus on responsible fiscal management has allowed us to provide this timely response to the affordability challenge that so many Albertans are facing. These targeted measures will provide relief at a time Albertans need it most.”

“Low-income Albertans are feeling the impact of increased costs each month. Albertans living with disabilities, seniors and others who rely on fixed incomes need support to get through these difficult times. The affordability measures being brought through Bill 2 will make a huge difference for vulnerable Albertans, which is why it is such an important piece of legislation that I am proud to support.”

If passed, Bill 2, the Inflation Relief Statutes Amendment Act, 2022, will enable key affordability support measures through legislation:

• Upcoming targeted relief payments for seniors and families with dependent children under 18 years of age with household incomes below $180,000 per year.
• Upcoming targeted relief payments to vulnerable Albertans collecting Assured Income for the Severely Handicapped (AISH), Persons with Developmental Disabilities (PDD) and Income Support.
• Indexing the Alberta Child and Family Benefit to inflation starting Jan. 1, 2023.
• Protecting consumers on the regulated electricity rate from price spikes in January, February and March 2023.
• Indexing personal income taxes to inflation, retroactive to the 2022 tax year.
• Suspending the full 13-cent-per-litre tax on gasoline and diesel from January to June 2023, with the fuel tax relief program providing ongoing relief subject to oil prices thereafter.

In addition to the legislation, upcoming regulation amendments will include:

• $200 in additional electricity rebates from January to April 2023, bringing total electricity relief from July 2022 to April 2023 to $500.
• Indexing AISH, Income Support and the Alberta Seniors Benefit to inflation.
• Enhancing the current natural gas rebate to provide permanent natural gas price protection.

Albertans can learn more about current and future affordability relief programs and supports at alberta.ca.

Quick facts

• Targeted relief payments for families and seniors:
  • Starting January 2023, eligible families with household incomes below $180,000 per year will receive six monthly payments of $100, for a total of $600 per dependent child under 18 years of age.
  • Starting January 2023, seniors with household incomes below $180,000 per year will receive six monthly payments of $100, for a total of $600.
  • More details on how and when to apply will be announced soon.
• Targeted relief payments to Albertans collecting AISH, PDD and Income Support:
  • More details on when clients will receive their payments will be announced soon.
• Indexing personal income taxes:
  • Alberta’s basic personal amount will increase to $19,814 from $19,369 for 2022, an increase of 2.3 per cent.
    • Other credit amounts and tax bracket thresholds will also rise by the same percentage.
    • Given the higher rates of inflation in late 2021 and 2022, these credit amounts and tax bracket thresholds will increase by six per cent for 2023, bringing the basic personal amount to $21,003.
  • An additional 80,000 to 95,000 Albertans will pay no provincial personal income tax by 2023, on top of the approximately 1.3 million tax filers who already pay no provincial personal income tax.
  • Many Albertans will receive a higher refund or owe less tax when they file their 2022 taxes. They will also benefit in 2023 through lower tax withholdings on their paycheques.
• Indexing the Alberta Child and Family Benefit to inflation:
  • This will increase the per-child amounts and phase out thresholds by six per cent effective January 2023. Recipients will receive the increased benefits beginning with the February payment.
  • The increase to the maximum annual benefit, based on whether a family has one to four or more children, follows:
    • one child - $120
    • two children - $198
    • three children - $260
    • four or more children - $307
• Re-indexing AISH, Income Support and the Alberta Seniors Benefit:
  • On Jan. 1, 2023, benefit rates will increase by six per cent to match the rate of inflation for 2022.
    • AISH and Income Support clients will see this increase on their Dec. 22 payment for January.
    • Alberta Seniors Benefit clients will see the increase on their Jan. 25 payment.
    • Alberta Child and Family Benefit clients will see the increase on their February quarterly payment.
• Temporary regulated rate option (RRO) electricity price stability:
  • Consumers who purchase power through the regulated rate option (RRO) will benefit from temporary price relief through a 13.5 cent per kilowatt hour ceiling in January, February and March 2023.
  • Electricity costs above the temporary ceiling will be deferred and spread over lower-rate months, with temporary zero-interest loans provided to RRO providers if needed to assist with this deferral.
  • In 2023, the government will evaluate the RRO to ensure electricity is stable and affordable for Alberta families, farms and small businesses.
• Expanded electricity rebates:
  • About 1.9 million homes, farms and businesses will receive $75 credits on their January and February bills, followed by $25 credits in March and April.
  • Eligibility criteria remains unchanged.
• Natural gas price protection:
  • Regulation amendments will be tabled in early 2023 enhancing the natural gas rebate program beyond its current March 30, 2023, end date to provide permanent natural gas price protection.
• Fuel relief:
  • Alberta’s government will pause the collection of the full 13-cent provincial fuel tax on gasoline and diesel between Jan. 1 and June 30, 2023, regardless of oil prices.
  • After June 2023, Albertans will continue to benefit from fuel tax relief whenever the average oil prices during each quarter’s determination period are above $80 per barrel, according to the current staged approach.
• Additional information is available at alberta.ca/affordability.