Alberta’s Carbon Tax & Edmonton Insurance Brokers

When Thomson Schindle and Green (TSG) Insurance Company opened its doors in 1985, Southern Alberta was a different place, with different values, and objectives. Today, economic and environmental perils are affronting Albertans on every turn, and while the intent is for a better future, it means paying for it today.insurance brokers edmonton

TSG Insurance can’t resolve the political and economic uncertainty in the world, but we can provide you with the comprehensive financial services and insurance policies for your needs so you can move forward with confidence. The only thing really guaranteed these days is that prices will go up, and in 2017 some Canadians are already feel the effects of the fight against climate change in their wallets. Confusion has become a common theme across Alberta as residents brace for the impact of the new tax.

Alberta’s carbon tax kicked in on January 1, 2017 – emissions from burning fossil fuels will be taxed at a rate of $20 per tonne. That increases to $30 per tonne in 2018, and is expected to keep moving towards the federal goal of $50 per tonne by 2022. The rate is based on the amount of carbon pollution released by the fuel when it is combusted, not on the mass of fuel itself. The province claims the policy will see Alberta’s emissions peak in 2020 and then decline by 50 megatonnes by 2030.

The Alberta Government pegs the indirect costs for higher prices on goods and services at around $50 to $70 per household this year. Already some companies have alerted clients of higher prices due to the carbon tax. The cost of the tax, based on typical fuel use and before rebates, is to be $191 for a single adult, $259 for a couple and $338 for a couple with two children per year. There’s no levy on electricity. The CBC has created a carbon tax calculator to help assess your individual cost.

Around 60 per cent of households will get a rebate. Full rebates will be provided to single Albertans who earn $47,500 or less, and couples and families who earn $95,000 or less. Approximately six per cent of households will get a partial rebate – up to $51,250 for a single person, $100,000 for a couple, and between $100,750 and $103,000 for a couple with children. The full rebate amount is $200 for an adult, $100 for a spouse and $30 for each child under 18, for up to four children. Single parents can claim the spouse amount for one child, and the child amount for up to four more children. There’s no application process for a rebate, it’s automatic for any household that files a tax return meeting the criteria. Payments will be mailed or direct deposited according to the amount a household can receive: $400 or more will be delivered in four payments in January, April, July and October; $200-$399 in payments in January and July; $100-$199 in a single January payment.

For farms and businesses, the small business tax rate has been cut to 2 per cent from 3 per cent, with projected savings of $185 million for small business owners in 2017-18. Marked farm fuels used for agricultural purposes are exempt from the carbon levy. The province will also roll out $10 million in programs to help farm operations reduce their emissions and save on energy bills through efficiency upgrades.

Insurance Brokers in Edmonton

The insurance brokers at TSG Insurance are happy to discuss the rates for our selection of insurance products and financial planning, including any impact from the new carbon tax. Call TSG Insurance in Edmonton at 780.464.0872; Bassano at 403.641.4988; Sherwood Park at 780.464.0872; Medicine Hat at 403.526.3283; Calgary at 403.723.9416; and Brooks at 403.362.8400, or toll free at 1.800.830.9423 today to discuss your business or personal insurance needs. If you need assistance with after-hours claims, please contact us at 1.888.224.5677.