Financial Measures (2012) Act Introduced

The province is putting tax cuts for small businesses and families into law. The Financial Measures (2012) Act, introduced today, April 12, by Finance Minister Graham Steele, also strengthens governance of the province's largest pension plan.

The act provides legislative authority to implement budget measures that make life better for families in Nova Scotia and is a routine part of the budget process.

"Budget 2012 continued our efforts to restore sense to the province's finances and get Nova Scotia back to balance," said Mr. Steele. "The Financial Measures Act follows through on our commitment to lower the small business tax, reduce the HST in 2014 and 2015, and improve how public pensions are governed."

A one percentage point reduction in the HST in 2014 and another in 2015 will become law. It also amends the Income Tax Act to reduce the rate of corporate income tax for small business to 3.5 per cent, effective Jan. 1, 2013.

The act includes two pieces of legislation that will modernize how the province's largest public pension plan is governed.

The 2012 Public Service Superannuation Act is the next step in the move to joint trusteeship that began in 2010. It will create the Public Service Superannuation Plan Trustee Inc., which will have directors representing employers, employees, and retirees, and will assume responsibility for the Public Service Superannuation Plan.

The Nova Scotia Pension Service Corporation Act will devolve the Nova Scotia Pension Agency from the government. The new non-profit corporation will provide pension and investment administration services for all plans currently served by the pension agency.

These changes do not reduce or change any pension benefits. The transition will take about a year.

A fact sheet on the Financial Measures (2012) Act can be found on the Department of Finance's website www.gov.ns.ca/finance/site-finance/media/finance/publications/FMA2012FS.pdf.

For more information on Budget 2012, visit www.novascotia.ca.