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2006 indexation adjustment for personal income tax system - Canada
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All personal income tax amounts will be adjusted by 2.2 per cent in 2006 to ensure that inflation does not cause people to pay more income tax.
Restoration of full indexation of the personal income tax system was announced in Budget 2000 and took effect that same year. Since that time, personal income tax amounts have been indexed to inflation every year using Consumer Price Index data, as reported by Statistics Canada.
The following changes to tax bracket thresholds will take effect as of January 1, 2006.
| Personal Amounts and Bracket Thresholds
| 2006
($)
2005
($)
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Basic personal amount
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9,039
8,648
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Spouse or common-law partner amount
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7,675
7,344
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Net income threshold
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768
735
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Taxable income at which 22-per-cent bracket begins
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36,378
35,595
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Taxable income at which 26-per-cent bracket begins
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72,756
71,190
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Taxable income at which 29-per-cent bracket begins
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118,285
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115,739
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In addition to the increases from indexation, the basic personal amount is being increased by $500 in 2005 and $200 in 2006, and the spouse or common-law partner amount is being increased by $425 in 2005 and $170 in 2006.
...back to 15 December 2005
More information:
2006 Indexation Adjustment for Personal Income Tax System
How Tax Parameters Are Indexed
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Yukon - Consultation on proposals to increase minimum wage - Canada
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The Yukon Employment Standards Board is seeking comments from employers and employees on its proposals to increase the minimum wage from April 1, 2006. The current rate of $7.20 was last increased in October 1998, based on the Consumer Price Index (CPI) for 1997.
The CPI had increased by 10.9% by December 2004 and is expected to increase further by 3.5% by the end of 2005. Those increases suggest a new minimum wage of $8.25.
The Board is also proposing that all future Minimum Wage increases be tied to the previous calendar year's CPI, which is available in January of the following year, and take effect from the following April 1.
A comment form is available on the Department of Community Services website.
...back to 8 December 2005
More information:
Minimum Wage Questionnaire
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