ALBERTA ADVANTAGE

Alberta's vision is "A vibrant and prosperous province where Albertans enjoy a superior quality of life and are confident about the future for themselves and their children."

The Government of Alberta's 20-Year Strategic Plan has outlined four areas of opportunity that will be important to the achievement of this long-term vision: unleashing innovation; leading in learning; competing in a global marketplace; and making Alberta the best place to live, work, and visit.

The Alberta Advantage illustrates, using widely accepted performance indicators, that Alberta is leading the way in these areas and is progressing toward its vision by capitalizing on the exciting opportunities that are available…

• a strong and vibrant economy
• a young, skilled and productive workforce
• affordable living costs
• a strong commitment to innovation and knowledge-based progress
• a highly entrepreneurial and competitive business community
• a business-friendly province committed to responsible regulation
• the lowest overall tax load of any province in Canada, including no retail sales tax
• a modern and efficient infrastructure
• an abundance of natural resources
• a beautiful natural environment
• a fiscally responsible provincial government

The Alberta Advantage is organized around the following categories: the economy, people, taxes, operating costs, quality of life and sound financial management. It shows that Alberta is "the place to be."

THE ECONOMY - STRONG AND DIVERSIFIED

Over the past decade, Alberta's economic performance has been exceptional, leading the nation in nearly all economic indicators. This province's prosperity enables its residents and businesses to be confident about the future. Alberta is creating an environment and infrastructure that enables knowledge and technology to invigorate our traditional economic strengths and create new opportunities.

REAL GDP per capita

• Alberta has the highest real gross domestic product per capita among the provinces.
• Since 2000, Alberta's real gross domestic product per capita has averaged 9.6% higher than second place Ontario.

• Alberta's economic growth rate was the second highest in Canada over the past five years.
• In 2004, Alberta's real output grew by an estimated 4.4%.
  

• Alberta continues to be far ahead in total private sector investment per person, as it has been for decades.
• Over the past five years, Alberta's investment per capita has been more than double that of the next highest province, Newfoundland and Labrador.

• Over the past five years, Alberta's average unemployment rate of 4.9% was lowest among the provinces, well below the national average of 7.3%.
• In 2004, Alberta's unemployment rate of 4.6% was the lowest in Canada.

• Over the five years ending in 2003 (the most recent data available), Albertans enjoyed the highest personal income per capita.
• In 2003, Alberta had the highest personal income per capita among provinces at $33,083, 13.3% above the national average.

• Over the five years ending in 2003 (the most recent data available), Alberta was ahead of all other provinces in personal disposable income per capita. At $25,654, Alberta's 2003 personal disposable income per capita was 13.8% above the national average.
• With no general retail sales tax in Alberta, the disposable income advantage translates into even greater purchasing power.

RETAIL SALES PER CAPITA

• Alberta continues to lead all provinces in retail sales per capita.

• Over the past five years, Alberta's retail sales per capita has been approximately 20% above the national average.

• Over the past five years, Alberta's average business growth has been the fastest of any province in Canada.
• In 2004, the number of businesses in Alberta increased by 2%, the strongest growth among provinces.

• Calgary has approximately 8 head offices for every 100,000 persons. This rate by far exceeds all other cities in Canada.

In today's knowledge-based economy, the people of Alberta are our province's most important resource. Albertans are highly skilled and productive, and are among the most educated in the world. They are the foundation of our thriving and vibrant economy.

POPULATION

• Over the past five years, Alberta's population has grown the fastest among the provinces.
• In 2004, Alberta's population growth of 1.4% also led the provinces.

• Alberta has the highest number of interprovincial migrants in Canada.
• From July 2003 to June 2004, a net of 10,902 migrants came to Alberta from other provinces. The only other provinces to experience positive net interprovincial migration during this time were British Columbia and Prince Edward Island, at 7,333 and 299, respectively.

• In 2003, the performance of students aged 15 in Alberta was significantly above the Canadian, United States and international averages in reading, mathematics and science.
• Out of 41 countries and Canada's provinces, Alberta scored second highest in mathematics and reading and fourth highest in science.

• Alberta has the best educated workforce in Canada.
• Approximately 65% of Albertans aged 25 to 64 have post-secondary education.

• Alberta has the youngest population among the provinces.
• About 58% of Albertans are under the age of 40.

• Alberta has the highest labour force participation rate in Canada, 4.4 percentage points higher than second place Manitoba.

• Compared to other provinces, more Albertans are working relative to the size of our working age population.

• Alberta is 4.3 percentage points above second place Manitoba.

• Albertans are the most productive workers in Canada, as measured by real GDP dollars produced per hour worked.

• In terms of person days lost due to labour disputes, Alberta's 5-year average record is better than all other provinces except Prince Edward Island.

• Newfoundland and Labrador had a public labour dispute in 2004 that distorted its five year average.

internet use

• Albertans are the most "connected" when it comes to Internet technology, which improves access to information, education, health and commerce services.
• Canada is the most connected country in the world.

THE LOWEST TAX LOAD - LEAVING MORE DOLLARS IN THE POCKETS OF ALBERTANS

Alberta is open for business with the lowest overall corporate and personal taxes in Canada. Albertans benefit from a competitive personal income tax system, the lowest tax on gasoline among the provinces, no general retail sales taxes and among the lowest property taxes in Canada. Their businesses benefit from having among the lowest corporate income taxes in Canada and no general payroll or capital taxes.

• Alberta has by far the lowest combined provincial and municipal tax burden among the provinces, at 53% of the national average.

• Alberta has no provincial retail sales tax.

• Alberta has the lowest top marginal personal income tax rate among the provinces at 39%–29% federal and 10% provincial.
• In Alberta, top income earners keep 61% of their last dollar earned.

• This graph, and the following two, compare provincial income, sales, payroll, fuel and tobacco taxes, and health care insurance premiums payable by a family.
• In Alberta, a typical one-income family earning $30,000 pays only $406, approximately 85% less than the average of the other provinces.

• In Alberta, a typical two-income family earning $60,000 pays $3,933, approximately 34% less in combined taxes and health care insurance premiums than the average of the other provinces.

• In Alberta, a typical two-income family earning $100,000 pays $7,224, approximately 36% less in combined taxes and health care insurance premiums than the average of the other provinces.

PROVINCIAL general CORPORATE INCOME TAX RATES

• Alberta has the second lowest general corporate income tax rate in Canada at 11.5%.
• Alberta businesses also benefit because Alberta has no general sales tax, capital tax or payroll tax.

• Alberta's small business corporate income tax rate of 3% is the second lowest in Canada.

• At 9.0 cents per litre, Alberta has the lowest gasoline tax rate among the provinces, 2.5 cents per litre below Manitoba, the second lowest province.

• This graph shows the total additional provincial taxes that individuals and businesses would pay if Alberta had the same tax systems as the other provinces. The comparison also includes government revenues from health care insurance premiums and alcohol.
• Albertans would pay almost $7.0 billion more if we had to pay British Columbia's taxes, and $11.4 billion more if we had to pay Newfoundland and Labrador's taxes.

When it comes to the cost of living and doing business, the province of Alberta is an attractive place to be. Alberta's favourable business environment encourages investment and allows companies and industries to compete and succeed. Our low taxes, skilled workforce and well-established infrastructure provide additional outstanding advantages.

business costs index

• Based on KPMG's study of business costs in North America, Europe and Asia-Pacific, Edmonton has the second lowest total costs among the major Canadian cities and all American cities.
• An Edmonton business would have an overall 11% cost advantage over the average U.S. city.

• Edmonton and Calgary are competitive among major cities for lowest initial investment costs, which consist of land acquisition and building construction costs.

• Labour costs, a major component of location-sensitive business costs that can range from 56% to 85% of total operations, are lowest in Edmonton among major cities.

WORKERS' COMPENSATION PREMIUMS

• Alberta's average WCB premium rate is the second lowest among the provinces.

• Based on the Fraser Institute's 2004 Survey of Senior Investment Managers, Alberta was in “a league of its own,” with the best investment climate among all Canadian provinces.
• Every survey respondent from Alberta indicated that the Alberta government maintains the necessary economic policies for a positive investment climate.

• Edmonton has the lowest overall office occupancy costs among major Canadian cities.
• Calgary has lower occupancy costs than in Ontario.

• Calgary and Edmonton continue to have the lowest gasoline prices in Canada, a trend that has been observed for the last fifteen years.

natural gas rates

• Albertans enjoyed the lowest residential natural gas rates in Canada during the first ten months of 2004 (the most recent data available).

• Residents in Edmonton pay less for daily living than some other Canadian cities such as Vancouver.
• A basket of daily living non-durable goods and services (food, utilities, household operations, transportation, health/personal care, recreation and tobacco/alcohol products) that costs $100 in Edmonton would be approximately $129 in St. John's.

• Housing affordability in Alberta is the best among the provinces, as home ownership costs taking up only 25.5% of a typical pre-tax household income.
• More balanced housing market conditions, record-low borrowing rates and good household income gains contributed to Alberta's solid housing affordability in 2004.

• Among major cities, Calgary and Edmonton rank first and second, respectively, when it comes to lowest property taxes for a typical single family house.

Each year, thousands of people from the rest of Canada are drawn to this province, well known for its exceptional standard of living. Alberta is a prosperous region, where residents share a rich natural environment and enjoy outstanding opportunities in recreation, arts and culture.

LIFE EXPECTANCY

• In 2002, Alberta had the third highest life expectancy at birth among provinces.

• Based on an analysis of "Quality of Life," Calgary places 25th out of 215 major cities in the world, tying with the highest ranked U.S. cities, Honolulu and San Francisco.

• With the second highest average household income among the provinces (Ontario with the highest), Albertans are able to spend more on sports, performing arts, and other recreational and entertainment activities.

• On a per capita basis, Alberta ranks highest for private sector support of the performing arts, according to the most recent data.

• In 2003-04, Alberta's age-sex adjusted health expenditures per capita were the second highest in Canada, $35 less than first place Newfoundland and Labrador.

• In 2003-04, Alberta had one of the highest education expenditures on a per capita basis.

The Alberta government is committed to responding to the needs of its citizens, while ensuring a balanced budget. As the only province with no accumulated debt, Alberta continues to attract international attention as the most fiscally responsible government in Canada.

• The Alberta government is committed to living within its means.
• Alberta has the highest surplus as a percentage of GDP in 2004-05.

• Alberta is the only provincial government in Canada with total financial assets that exceed total liabilities.
• At March 31, 2005, Alberta's financial assets are forecast to be $31.0 billion. Total liabilities (excluding pension obligations) are forecast to be $11.5 billion, resulting in net financial assets of about $19.5 billion.

• Alberta's accumulated debt was eliminated as of March 31, 2005
• This is 20 years ahead of the debt retirement schedule originally legislated in the Fiscal Responsibility Act.

• Alberta is the top province in Canada for credit worthiness. All major rating agencies (Standard and Poor's, Moody's, and Dominion Bond Rating Service) give Alberta "Triple A," the highest possible rating.
• The high ratings reflect Alberta's strong economic performance, high income levels, low debt burden, and prudent fiscal management.

• Alberta has the lowest interest rate spread relative to 10-year Government of Canada bonds of any province in Canada.
• Alberta's strong fiscal performance and top credit rating have led to lower borrowing costs for the province and local authorities that borrow through the Alberta Capital Finance Authority.

• For the eighth consecutive year, Alberta's "A" rating topped all other provinces and the federal goverment on the Fraser Institute's Budget Performance Index.
• According to the index, which is based on the tax and spending behaviour of governments, Alberta's performance surpassed the federal goverment's second place ranking by 37%.

• The Fraser Institute's measure of economic freedom (which indicates the fostering of economic growth and prosperity through minimal government regulation and taxation) rates Alberta number one in Canada as a place to do business.

economic freedom INDEX - NORTH AMERICA

• Improving upon its best-ever tenth place finish in 2001 (Alberta was the first Canadian province to break into the top 10 in North America), Alberta tied with Texas and Georgia for fourth place in the Fraser Institute's 2002 measure of economic freedom.

Go to:  Alberta Tax Advantage