This memo highlights items that may be of interest to pension and group benefit plan Trustees, sponsors, and administrators.

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Notes on the BC Budget (PDF)

Healthcare

The Budget includes over $2.7 billion in new investments in the healthcare system over the next three years, including $2.3 billion to increase health system capacity. Healthcare remains the Province’s largest investment.

Publicly-Funded IVF Program

• $34 million annually to continue the publicly funded IVF program launched in July 2025.
• This income-tested program provides families with a combined annual pre-tax income of $250,000 or less per year up to $19,000 toward a single standard cycle of IVF treatment at participating B.C. fertility clinics.

Mental Health and Addictions

• $131 million over three years for implementation of recommendations from the Chief Scientific Advisor for psychiatry, toxic drugs, and concurrent disorders (including support for the expansion of Assertive Community Treatment teams and increasing the number of specialized treatment beds for involuntary care in Prince George, Maple Ridge and Surrey).
• Continued funding for 3,785 treatment and recovery beds, 19 Foundry locations operating across B.C., Road to Recovery initiatives supporting public sector and non-profit service providers, support for children and youth, and Indigenous-led treatment and recovery initiatives.

Diabetes and Hormone Replacement Therapies

$653 million in additional federal funding through the national Pharmacare agreement, to expand public coverage for diabetes and menopausal hormone therapies.

Long-Term Care for Seniors

The delivery for several approved long-term care projects, including in Abbotsford, Campbell River, Chilliwack, Kelowna, Delta, Fort St. John, and Squamish will be delayed as the Government plans first to incorporate the lessons learned from projects underway and its ongoing review of the long-term care infrastructure program, and redesign projects based on standardized design guidelines to lower costs and construction timelines.

Disability Support

Autism Funding Program

Over 2026 and 2027, the Autism Individualized Funding Program, which provides $6,000 (ages 0-5) to $22,000 (ages 6-18), will be replaced with new supports under a redesigned model.

New Model for Children and Youth with Support Needs

The Budget includes $475 million in new funding over three years for children and youth with disabilities, with direct funding for support services and more service providers in their communities. This includes:

• A new Children and Youth with Support Needs Benefit providing $6,500 to $17,000 annually, depending on support needs. Eligibility will be based on functional needs, rather than diagnosis, age, or income. 12,000 families of children with significant and life-altering disabilities requiring higher, sustained, individualized support are expected to receive funding.
• An income-tested Children and Youth Disability Supplement for families with a child eligible for the federal Disability Tax Credit, providing up to $6,000 annually.
• A 40% increase in community-based services with expanded behavioural, mental health, 6–18 programming, and navigation support.

Disability Assistance for Couples

• Effective December 1, 2025, couples receiving disability assistance will be treated as two single people for the support allowance.
• January 1, 2026, couples can benefit from an increased annual earnings exemption when one partner has the Persons with Disabilities designation.

Disability Assistance

• $121 million over three years for income, disability, and supplementary assistance.
• Forecast based on population growth: no increases to disability assistance rates and income.

Training and Education

Look West: Jobs and Prosperity for a Stronger B. C. and Canada

Look West is the Province of British Columbia’s new long-term economic strategy for the next decade. Budget 2026 includes $283 million in new funding over three years to support the commitments set out in this targeted plan, which will fund changes to SkilledTradesBC, the BC Employer Training Grant, and training in technology-related degrees.

SkilledTradesBC

$241 million over three years will double SkilledTradesBC’s funding. This funding aims to:

• address waitlists (5,000 new seats).
• increase per-seat funding at certified training institutions (particularly in high-demand and priority trades).
• expand Skilled Trades Certification, beginning with crane operators.
• help ensure clear, consistent pathways to certification.

BC Employer Training Grant

$12 million is allocated over three years to enhance the B.C. Employer Training Grant. The funding is expected to help double apprenticeship seats by 2028/29 from current levels.

Funding Training in Technology-Related Degrees

$30 million is earmarked to establish dedicated funding to train highly qualified professionals in technology-related fields such as engineering and geology, computer science, biology and aerospace by:

• adding specialized streams to existing programs.
• improving alliances between industry and post-secondary partners.

The funding aims to increase the number of trained workers in priority areas such as critical minerals, marine, transportation, and advanced technology.

B.C. Training and Education Savings Grant (BCTESG)

The $1,200 grant program for eligible children’s Registered Education Savings Plans (RESPs) will be discontinued effective April 1, 2028.

Infrastructure Investments

Capital spending on schools, hospitals, roads, bridges, transit, hydro-electric projects and other infrastructure throughout the province is expected to total $52.9 billion over the fiscal plan period.

Some major projects include:

• The Broadway Subway project and the Surrey Langley SkyTrain.
• The Fraser Valley Highway 1 Corridor Improvement Program and the Fraser River Tunnel project.
• K-12 school additions and improvements that will add 23,600 new student spaces and almost 6,000 seismically safe seats.
• Student housing projects that will add 3,900 new beds at post-secondary institutions.
• A new medical school at Simon Fraser University.

Health Infrastructure

$11.1 billion in capital spending over the next three years on infrastructure in the health sector. Examples include the new St. Paul’s Hospital in Vancouver, the Royal Columbian Hospital redevelopment in New Westminster, and the Cowichan District Hospital replacement on Vancouver Island.

These investments support the construction of major projects, the upgrading of health facilities, the addition of long-term care beds, and access to primary care.

Reduction in Permitting Times

The Government’s Look West strategy aims to reduce permitting times by 50 per cent with $40 million in investments over three years to further strengthen permitting capacity across the natural resource and tourism sectors.

Housing

• Over $2 billion each year in investments in housing.
• The Government announced it is adjusting the pace of new housing projects. The Budget reallocates $1.4 billion away from housing development.

Tax Measures

Personal Income Tax Rate Increase

Effective for the 2026 and subsequent taxation years:

• Lowest rate increases from 5.06% to 5.60%.
• Applies to the first $50,363 of taxable income for 2026.
• The tax impacts will vary by taxpayer based on income levels and the availability of tax credits, with an average additional tax of $76 in 2026 and a maximum impact of $201.

This change is expected to bring in $476 millions in personal income tax revenue in 2026/27.

B.C. Tax Reduction Credit

Effective for the 2026 taxation year:

• Maximum tax reduction credit increased to $690 (up $115).
• Fully available to individuals with a new income under $25,570 and reduced by 3.56 per cent for income that exceeds the threshold.

Wider PST Tax Base

Effective October 1, 2026, PST is expanded to include select professional services, including accounting and bookkeeping; architectural, engineering, and geoscience; rental property and strata management; commissions related to buying and selling non-residential real estate; and security and private investigation services. Architectural, engineering, and geoscience services will be taxable on 30% of the purchase price.

PST Exemptions Removed

Effective October 1, 2026, PST exemptions for the following items will be eliminated:

clothing patterns, yarn, natural fibres, synthetic thread, fabric used in making or repairing clothing, services related to clothing and footwear repair, basic cable, toll-free telephone services, and residential landline services.