Budget 2025: What It Means for Newcomers
Alberta Budget 2025 allocates $42M for Immigration and Multiculturalism, boosts employment support by 26%, and navigates slowing population growth from 4.4% to 2.5%.
Immigration and Multiculturalism expense
$42M
+$2M from 2024-25
Employment and Income Support
$1,255M
+26% from 2024-25
Population growth forecast
2.5%
Down from 4.4%
Personal income tax savings (per person)
Up to $750
New 8% bracket
The Bottom Line
Budget 2025 acknowledges that Alberta's extraordinary population growth of 4.4% in 2024 has strained public services and driven up demand for everything from income support to housing. Growth is forecast to moderate to 2.5% in 2025, with net migration of approximately 102,200 people. The Immigration and Multiculturalism ministry receives $42 million, a modest $2 million increase, while employment and income support programs surge 26% to $1,255 million to meet demand generated by recent newcomer arrivals. If you are a newcomer, the personal income tax cut saves you up to $750, but the Alberta Advantage Immigration Program (AAIP) application fee is nearly doubling.
Top Measures That Affect You
1. Immigration and Multiculturalism: $42 Million
The ministry receives $42 million in operating expense in 2025-26, an increase of almost $2 million from the 2024-25 forecast. The increase is mainly due to the introduction of new services and fees for the International Qualifications Assessment Service (IQAS). A decline in the number of immigrants expected as a result of recent federal policy changes and the associated decline in processing expense partially offset the overall increase.
2. AAIP Application Fee Increasing
The Alberta Advantage Immigration Program application fee is increasing from $840 to $1,500. This is a significant cost increase if you are applying through the provincial nominee program. Budget this additional expense into your immigration planning.
3. IQAS New Services and Fees
New services are being introduced for International Qualifications Assessment Service, including a Rush Service Fee of $250. IQAS helps you get your international education credentials recognized in Alberta. The new services aim to improve and expand credential assessment, though additional fees increase the cost of the process.
4. Employment and Income Support: +26%
Employment and Income Support expense surges to $1,255 million in 2025-26, a $258 million or 26% increase from the prior year. The Fiscal Plan directly links this increase to the significant population growth in late 2023 and early 2024 that was not fully anticipated during previous budget planning. An additional $38 million has been added in anticipation of U.S. tariff impacts on employment. If you are seeking work or income support as a newcomer, funding is available.
5. Personal Income Tax Cut
The new 8% tax bracket on your first $60,000 of income saves you up to $750 per year. If you earn less than $60,000, your personal income taxes fall by approximately 20%. This applies as soon as you file your 2025 Alberta income tax return. You should see the benefit on your paycheques after July 1, 2025.
6. Post-Secondary Education Access
Advanced Education receives $6,635 million in operating expense. Major capital investments across the province create more post-secondary spaces, including nearly 3,200 new spaces at the University of Alberta and University of Calgary science facilities. NorQuest College in Edmonton, a key institution for newcomer education, receives $4 million for campus expansion.
7. Housing Market Support
The budget forecasts 43,000 housing starts in 2025, with shelter costs expected to ease. The Alberta Social Housing Corporation supports over 110,000 Albertans in 60,746 households through affordable housing, rental supplements, and other programs. ASHC expense grows by $245 million in 2025-26 to $641 million, with $767 million over three years for the Affordable Housing Strategy.
Direct Financial Impact
Tax savings: Up to $750 from the new 8% bracket on your first $60,000 of income. Alberta has no provincial sales tax, keeping your cost of living lower than in most other provinces.
Immigration fees increasing: The AAIP application fee nearly doubles from $840 to $1,500. The IQAS Rush Service Fee of $250 is new. Budget for these higher costs if you are in the immigration or credential recognition process.
Employment outlook: The unemployment rate is forecast at 7.4%, up from 7.0%. Job gains are lagging behind working-age population growth. Growth in primary household income is forecast to ease from 7.1% in 2024 to 4.8% in 2025. The labour market will be more competitive for newcomers seeking employment.
Housing affordability: Shelter costs are easing with lower interest rates. Mortgage rule changes including longer amortizations for first-time homebuyers support demand. However, population growth continues to drive rental demand. Rental vacancy rates are still relatively low.
Seniors benefits: If you are a senior newcomer, Alberta Seniors Benefits are increasing by $33 million to $540 million in 2025-26 due to growth in the seniors population.
Service Changes
Population growth moderating: Alberta's population growth is forecast to slow from 4.4% in 2024 to 2.5% in 2025, with further moderation in subsequent years. Federal policy changes, including reductions to targets for non-permanent residents, are expected to reduce annual flows. The budget notes that net non-permanent residents may turn negative in 2026 and 2027 before becoming positive again in 2028.
Health system restructuring: Primary Care Alberta, the new health agency, aims to improve access to family doctors province-wide. As a newcomer, finding a family doctor has been a significant challenge during the high-growth period. The new agency's mandate includes comprehensive, timely access to primary care.
Credential recognition: IQAS improvements and new services should speed up your credential assessment process, though at higher cost. Getting your qualifications recognized faster helps you enter the workforce at your skill level sooner.
Alberta Disability Assistance Program: Launching in 2026, this program will empower those with a disability to work without significant reductions to income assistance or medical benefits. This is relevant for newcomers with disabilities who want to participate in the workforce.
School enrolment growth: Education expense increases by $205 million from the prior budget, driven by enrolment growth. Schools are receiving more funding to accommodate the children of newcomer families. The SCAP program targets roughly 150,000 new and modernized student spaces.
What's Missing
No settlement funding increase: Beyond the modest $2 million increase to the ministry, there is no significant new investment in settlement services to help newcomers integrate into Alberta communities.
No language training expansion: The budget does not announce additional English language training capacity despite the volume of newcomers who arrived in 2023-2024.
No credential recognition fast-track: While new IQAS services are introduced, there is no dedicated fast-track program for in-demand occupations like health care, where credential delays keep qualified newcomers out of the workforce.
No newcomer housing assistance: While ASHC expands housing programs generally, there is no newcomer-specific housing assistance or transition support program.
No employment matching program: Despite the 26% surge in employment support funding, the budget does not announce a structured employer-newcomer matching program to help fill labour shortages.
No fee waiver program: The AAIP application fee increase from $840 to $1,500 comes without a fee waiver or subsidy for lower-income applicants.
Key Dates
| Date | Event |
|---|---|
| January 1, 2025 | New 8% personal income tax bracket takes effect |
| February 27, 2025 | Budget 2025 tabled |
| April 1, 2025 | 2025-26 fiscal year begins |
| After July 1, 2025 | Adjusted payroll withholdings reflect tax cut on paycheques |
| 2025-26 | AAIP application fee increases to $1,500 |
| 2025-26 | New IQAS services and rush fee available |
| 2025-26 | Employment support programs expanded |
| 2026 | Alberta Disability Assistance Program launches |
| 2026-27 | Net non-permanent resident flows may turn negative |
Where to Get Help
- Alberta Immigration and Multiculturalism: For AAIP and immigration programs. Visit alberta.ca/immigration.
- International Qualifications Assessment Service (IQAS): For credential recognition. Visit alberta.ca/iqas.
- Alberta Supports: For employment and income support services. Call 1-877-644-9992 or visit an Alberta Supports Centre.
- NorQuest College: For newcomer education and workforce training in Edmonton. Visit norquest.ca.
- Local immigrant-serving organizations: Contact your local immigrant settlement agency for personalized support.
- Alberta Treasury Board and Finance: For income tax details. Visit alberta.ca/budget.