Alberta.ca » Income and Employment Supports Policy Manual


Expected to Work/Barriers to Full Employment Policy & Procedures

Published Date: April 16, 2024
Bookmark this page

09 Income

Fully Exempt Income

AUTHORITY
Income Support, Training and Health Benefits (ISTHB) Regulation, sections 1(1)(j), 23(3)(e) and Schedule 2
MO 2018-19 Appendix C: Schedule 2 - Exempt Financial Resources
MO 2016-18 Exemption of Alberta Child Welfare Class Action Settlement
MO 2016-01 Exemption of Alberta Child Benefit
MO 2016-24 Castle Mountain Land and Timber Claim Settlement
MO 2016-17 Exemption of Disaster Relief Payments
MO 2017-03 Clegg Class Action Settlement
MO 2017-13 Agricultural Benefits Settlement Agreements
MO 2017-17 Piikani Nation Grazing Leases Specific Claim Settlement Agreement
MO 2018-15 Lubicon Lake Band No. 453 Treaty 8 Lands and Benefits Claim Settlement Agreement
MO 2019-02 Blood Tribe Mismanagement of Assets Specific Claim Settlement Agreement
MO 2019-07 Missanabie Cree First Nation Treaty Land Entitlement Settlement Agreement
MO 2019- 09 Canada Workers Benefit
MO 2019-10 – Pain and Suffering Compensation
MO 2019-12 – Additional Pain and Suffering Compensation
MO 2020-003 – Final Settlement Agreement (Ross, Roy and Satalic and Her Majesty the Queen)
MO 2020-005 – Raymond Michael Toth v. Her Majesty the Queen Class Action Settlement Agreement
MO 2020-007 – Sixties Scoop Settlement Agreement
MO 2020-009 - Alberta Child and Family Benefit
MO 2020-013 – Federal Indian Day Schools (McLean) Settlement Agreement
MO 2020-023 - Canada Emergency Student Benefit
MO 2020-024 - Empowering food insecure Albertans to manage their diabetes through a subsidized healthy food prescription program
MO 2020-025 - Federal One-Time Payment to Persons with Disabilities in response to COVID-19
MO 2021-005 – Canada Recovery Benefits
MO 2021-003 - Heroes Fund
MO 2021-008 - Covid Self-Isolation Payment
MO 2021-010 - Enoch Cree Nation Yekau Lake Practice Bombing Range Specific Claim Settlement
MO 2021-012 - Working Parents Benefit
MO 2021-014 - Critical Worker Benefit
MO 2021-016 – Memorial Grant Program Payments
MO-2021-019 ISTHB Exemption – CRB Payments Extension
MO 2021-025 - Mosquito Grizzly Bear Head Lean Man First Nation
MO 2021-027 - Peepeekisis First Nation
MO 2021-030 - Vaccine Incentive Debit Cards
MO 2022-010 – Siksika Nation Global Settlement Agreement
MO 2023-004 - Canada Dental Benefit and Canada Housing Benefit Payments
MO 2023-07 – Canadian Armed Forces/Department of National Defense/Canadian Forces Class Action Settlement
MO 2023-024 – Compassionate payments to individuals impacted by the September 2023 E. coli outbreak in Calgary childcare facilities
MO 2023-025 – Manitoba Developmental Centre (Weremy v Manitoba) Class Action Settlement
MO 2024-007 – Canada Housing Benefit for Survivors of Gender-Based Violence (CHB GBV)


INTENT
To define resources that are fully exempt as income in the determination of program eligibility and the monthly benefit amount.

 

POLICY

Schedule 2 of the Income Support, Training and Health Benefits (ISTHB) Regulation, along with various Ministerial Orders, outline income types that are exempt when determining program eligibility and the monthly benefit amount a household unit is eligible to receive.

 

Note

Income exemptions are different from Resources Not Considered Income and Allowable Income Deductions

The following sections outline payments that are fully exempt income.

'Harm Done' Payments

‘Harm Done’ payments can relate to a wide range of ‘harms’ such as physical, cultural, or historic harms, and can be made to individuals or groups. These payments are typically the result of a settlement agreement involving the Government of Canada or a Territory of Canada.

The following ‘harm done’ payments are fully exempt:

Payment Notes 

A payment received under Schedule A or B to the 1986-1990 Hepatitis C Settlement Agreement other than;

  • A payment under section 4.02 of the Agreement for loss of income, or
  • A payment under section 6.01 of the Agreement for loss of support resulting from the death of the infected person.
Payments received under section 4.02 of that Agreement are monthly payments received due to loss of income. As these payments are income replacement payments, they are not exempt.
A payment received for the pre-1986 and post 1990 Hepatitis C Settlement Agreement There is no method of distinguishing loss of income and loss of support payments made in this agreement, therefore the entire payment is exempt. 
Compensation for a member of the household unit having been infected with the HIV virus through the blood supply  
A benefit paid under the Victims of Crime Act except for any portion paid for lost income
A Common Experience Payment (CEP) and Independent Assessment Process Payments (IAP) under the Indian Residential Schools Settlement Agreement
Clegg Class Action Settlement payments (2017)
Compensation payments made under the Final Settlement Agreement between Ross, Roy and Satalic and Her Majesty the Queen for policies and actions taken against Lesbian, Gay, Bisexual and Transgender (LGBT) federal public servants (2020)
Compensation payments made under the Raymond Michael Toth v. Her Majesty the Queen Class Action Settlement Agreement for policies that resulted in reduced pension benefits of disabled Veterans (2020)
Compensation payments made under the Sixties Scoop Settlement Agreement (2020)
Compensation payments made under the Federal Indian Day Schools (McLean) Settlement Agreement (2020)
Japanese Canadian Redress Agreement
Extraordinary Assistance Plan
Huronia Regional Centre Class Action Settlement
A Child Welfare Class Action Settlement payment from the Government of Alberta
Canadian Armed Forces (CAF) - Department of National Defense (DND) Sexual Misconduct Class Action Settlement.
Compensation payments made to a class member under the Manitoba Developmental Centre Settlement Agreement (Weremy v Manitoba) (2023)


Specific Claims Agreements

Specific Claims Agreements are a type of harm done payment. These claims are filed by the First Nation(s) that suffered the grievance.

The following specific claim agreements are fully exempt:

Payment  Notes 

A payment received from Tsuut'ina First Nation as a result of the Final Calgary Ring-Road Agreement dated November 27, 2013

Agreement is between the Tsuut'ina Nation and Her Majesty the Queen and is paid equally to each member on the Tsuut'ina First Nation band list

Payments made to a First Nation under an agreement with the Government of Canada for a specific land claim (surrender):

  • Duncan First Nation Land Settlement Claim
  • O'Chiese First Nations Land Settlement Claim
  • Bigstone Cree Nation and Peerless Trout First Nation Treat 8 Land Settlement
  • Mikisew Cree First Nation Settlement Agreement
  • Castle Mountain Land and Timber Claim Settlement (2016)
  • Mosquito Grizzly Bear’s Head Lean Man First Nation Settlement (2021)
 
Government of Alberta Siksika Land Settlement Claim regarding Bassano Dam  


Per Capita Distribution Payments

A payment of a non-recurring nature received from a First Nation that is paid equally to each member on the First Nations Band List is fully exempt.

Payment Notes

A payment of a non-recurring nature received from a First Nation that is paid equally to each member on the First Nations Band List














Examples of non-recurring per capita distribution payments received from First Nations include:

  • Agricultural Benefits Settlement Agreements
  • The Piikani Nation Grazing Leases Specific Claim Settlement Agreement (2017)
  • The Lubicon Lake Band No. 453 Treaty 8 Lands and Benefits Claim Settlement Agreement (2018)
  • The Blood Tribe Mismanagement of Assets Specific Claim Settlement Agreement (2019)
  • The Missanabie Cree First Nation Treaty Land Entitlement Settlement Agreement (2019)
  • The Enoch Cree Nation Yekau Lake Practice Bombing Range Specific Claim Settlement Agreement (2020)
  • Peepeekisis First Nation Specific Claim Settlement Agreement (2021)
  • Siksika Nation Global Settlement Agreement (2022).. Note: This – exemption applies to the July 2022 PCD payment.


Disaster Relief/Recovery Payments

Disaster relief/recovery payments are made to individuals who have been impacted by disasters. They can include compensation for costs associated with temporary/long-term evacuations, to repair damaged property, or to replace lost/destroyed property.

The following disaster/recovery payments are fully exempt:

Payment  Notes 
A Slave Lake Wildfire Relief Payment or a payment under the Emergency Accommodation Program to persons subject to the mandatory evacuation order Issued in May 2011

Compensation pursuant to a Disaster Recovery Program for the June 2013 floods  
Payments issued by a charitable organization for the June 2013 floods  
Compensation issued by the Government of Alberta for damage or loss caused by a disaster For incidents that are determined by the Government of Alberta to be a disaster
Payments issued by a charitable organization for a disaster determined by the Government of Alberta

 

Tax Benefits/Rebates

Certain tax benefits/rebates provided to low income Albertans by the federal or provincial governments are exempted.

The following payments received for tax benefits/rebates are fully exempt:

Payment  Notes

Alberta Child and Family Benefits (ACFB) payments received from the Government of Alberta

 

Replaced the Alberta Child Benefit and the Alberta Family Employment Tax Credit in 2020


A Canada Child Benefit (CCB) under the Income Tax Act (Canada)



The exemption includes retroactive payments or adjustments.

Replaced the Canada Child Tax Benefit and the Universal Child Care Benefit payment in 2016

A Goods and Services Tax credit (GST) received from the Government of Canada  
Money received from a management body under the Alberta Housing Act for the payment of utilities other than electricity  
Money received under a program of the Government of Canada or Alberta for home repairs or renovations
A payment, refund or credit directly or indirectly from the Government of Canada or Alberta that is designed to protect consumers from high energy costs
The Canada Workers Benefit received from the Government of Canada Replaced the Working Income Tax Benefit

 

Compensation for deposits or rent supplements

The following table lists fully exempt income for payments received for damage deposits, moving allowance or rental subsidy.

Payment Notes 
A refunded damage deposit under a tenancy agreement or a refunded deposit paid in respect of a utility or telephone  
A moving allowance provided by a landlord on termination of a tenancy agreement  
Rent Assistance Benefit from the Rent Supplement Program Formerly the Direct to Tenant Rent Supplement
Canada Housing Benefit One-time top-up for renters
Canada Housing Benefit for Survivors of Gender-Based Violence (CHB GBV) The CHB GBV is provided jointly by the governments of Canada and Alberta. It is administered by provincial housing management bodies.

 

Compensation for the Care of Others

The following table lists fully exempt income for payments received for the care of others.

Payment Notes 
A payment received by a member of the household unit pursuant to an order for the support of a child who is not a member of the household unit
This exemption includes child support payable under a court order or support agreement received for a person who is not a dependent child. If the child is in receipt of IS, the child support is non-exempt income for that client.
Payments of arrears of child support that are not owing to the government.

Arrears are only exempt for months when the client was not receiving IS.

See the Child and Adult Support Income policy.
A payment made under a Government of Alberta program to reimburse living expenses of a person who is living with the member not normally part of the household unit.


This exemption is for payments received by:

  • Foster parents
  • Supported adoptive parents
  • Host families, under a program sponsored by Services to Persons with Disabilities
  • Guardians under the Child Financial Support Program (CFS) of Children and Youth Services

 

Employment/Training Resources

The following table lists fully exempt income for payments received for employment/training resources.

Payment Notes
A grant or loan to start a business, from a federal or provincial government department or agency or from a non-profit organization

The exemption excludes any amount received as a living allowance
A loan from a financial institution, excluding a government loan for post-secondary studies

This income is exempt as clients are expected to repay monies borrowed from a financial institution 

A payment made by the Government of Canada or Alberta for part-time training costs as follows:

  • Part-time Canada Student Loan (Government of Canada)
  • Canada Student Grant for Part-time Studies (Government of Canada)
  • Canada Student Grant for Persons with Permanent Disabilities (Government of Canada)
  • Canada Student Grant for Services and Equipment for Persons with Permanent Disabilities (Government of Canada)
  • Alberta Works Skills Investment Bursary (Government of Alberta)
 
A payment made by the Government of Canada or Alberta for Disability Related Employment Supports and/or Services to assist Albertans with disabilities to access Community and Social Services funded full or part-time training programs and / or to obtain employment  

 

Compensation and Other Income:

The following table lists fully exempt income for payments received for compensation and other income.

Payment Notes 
Withdrawals from a Registered Disability Savings Plan (RDSP)  
Money received as compensation for loss or damage to property of a member of the household unit if the money is used to repair or replace the property within a reasonable time or is used for some other purpose, within a reasonable time.



Worker authority: if the money is used to repair or replace the property within a reasonable time, as determined by the worker.

Supervisor authority: if the money is used for some other purpose and within a reasonable time, as determined by the supervisor.

Money received from the Government of Alberta to assist a person with a disability in purchasing services that will enable the person to live in the community.

This payment is exempt to cover the home care costs and individual maintenance expenses outlined in the service plan for disabled clients.

When a client or dependent on the client’s file receives payment for service provision to a person with a disability, the money is considered employment income

Roth/Fifield Class Action Settlement Agreement from the Government of Alberta
Proceeds from Calgary Dollars or Cochrane Dollars  Not considered legal tender
Payment for participation in the University of Calgary Research Project: “Empowering food insecure Albertans to manage their diabetes through a subsidized healthy food prescription program”  
Canada Emergency Student Benefit payments received from the Government of Canada when received by a dependent child Not exempt if received by an adult member of the household
One-time payment to persons with disabilities in response to COVID-19 received from the Government of Canada
Veterans Affairs Canada Pain and Suffering Compensation payments received from the Government of Canada Previously called the Disability Award
Veterans Affairs Canada Additional Pain and Suffering Compensation payments received from the Government of Canada

Canada Recovery Benefit (CRB) payments intended as income for the eligibility periods between September 27, 2020 and June 30, 2021 when received by an existing member of an Income Support household. This includes the:

  • Canada Recovery Benefit;
  • Canada Recovery Sickness Benefit; and
  • Canada Recovery Caregiving Benefit


Payments from the Heroes Fund received from the Government of Alberta

COVID Self-Isolation payments issued by the Government of Alberta, after the person completes their required isolation/quarantine period in hotel, as required by Alberta Health Services.

Working Parents Benefit payments received from the Government of Alberta

Critical Worker Benefit payments received from the Government of Canada and the Government of Alberta

Memorial Grant Program payments received from the Government of Canada



COVID-19 Vaccine Incentive payments received from the Government of Alberta



Canada Dental Benefit

Affordability payments received from the Government of Alberta

Payments from the Government of Alberta for the periods of January to June 2023         

Compassionate payments from the Government of Alberta to individuals impacted by the September 2023 E. coli outbreak in Calgary childcare facilities