News Archived to Spring 2007

Tax Notes for Locksmiths

The government of Canada has recently introduced new measures that apply specifically to firms that are active in Apprenticeship Trades. Of the 3 new measures, however, Locksmiths only qualify for one. The other two are only available to firms that are active in trades designated as "Red Seal" trades.

Canada Revenue Agency (CRA) has made 2 new tax deductions available:

1) The Apprenticeship Job creation Tax Credit; a non-refundable tax credit based on salaries paid to eligible Apprentices, up to a maximum of $2,000.00. Unfortunately, this tax credit only applies to apprentices in Red Seal Trades.

2) Tradesperson's Tools Deduction; If an employee who is an Apprentice in any designated trade has spent $1,000.00 or more on tools since May 1, 2006, he/she can apply a $500.00 deduction to his/her taxable income.

In addition to CRA's 2 new deductions, Human Resources and Social Development Canada (HRSDC) has a new Apprenticeship Incentive Grant; a taxable cash grant of $1,000.00 per year available to Apprentices in Red Seal Trades who have just completed their first or second period of training as of January 1, 2007.

The Red Seal program makes an "interprovincial standards examination" available to graduates of Apprenticeship Trades and awards them a "Red Seal" to affix to their provincial Journeyman Certificate. In effect, a Red Seal makes a Journeyman certificate portable across all Canadian provinces & territories.

The Locksmith trade does not qualify for Red Seal designation primarily because there are not enough provinces supporting Locksmithing as a trade.

More information on the 3 new measures can be found here.

More information on the Red Seal Program can be found here.

Apprenticeship Training Tuition Fee Increase

Apprenticeship training tuition fees will increase 3.3% for 2007/2008, bringing the tuition for Locksmith Program classes from $650.00 to $672.00.

Tuition fees have been frozen for the past 2 years at the 2004/2005 level of $81.25/week ($650.00 for an 8-week class)  due to Alberta Apprenticeship Training Rebates. However, fees are to increase annually from now on, with the increase amounts calculated using the Alberta Consumer Price Index (CPI). The CPI is a measure of the cost of living and the 3.3% is the calculated increase in the cost of living from 2004/2005 to 2005/2006.

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