Federal Budget Quick Highlights March 22, 2016
This is a spenders budget, $150 million to fund CBC per year, more Child Tax Benefit (income tested), more tax auditors for compliance to find those extra dollars from the taxpayer, more refugees (10,000 more) and lots of spending on lower carbon foot print items.
Fast 7 Items;
6. To be consistent with the time limit on retroactive claims of other tax amounts, Budget 2016 proposes to allow
taxpayer to request a retroactive payment of the Canada Child Benefit, CCTB or UCCB in respect of a month on or
before the day that is 10 years after the beginning of that month, effective for requests made after June 2016.
Age 65 for CPP and OAS
Budget 2016 proposes to cancel the provisions in the Old Age Security Act that increase the age of eligibility forOld Age Security and Guaranteed Income Supplement benefits from 65 to 67 and Allowance benefits from 60 to 62 over the 2023 to 2029 period. Restoring the eligibility age for Old Age Security and Guaranteed IncomeSupplement benefits to 65.
ELIMINATING INCOME SPLITTING FOR COUPLES WITH CHILDREN
Budget 2016 proposes to eliminate income splitting for couples with children under the age of 18 ie $2,000 value for the 2016 and subsequent taxation years. However, pension income splitting will not be affected by this change.
ELIMINATING THE CHILDREN’S FITNESS TAX CREDIT AND THE CHILDREN’S ARTS TAX CREDIT
The Children’s Fitness and Arts Tax Credits are currently worth up to $150 and $75 per child on up to $1,000 and $500 in eligible expenses, respectively. As part of the Government’s efforts to simplify the tax code and better target supportfor families with children, Budget 2016 proposes to reduce the maximum eligible expenses for the Children’s Fitness and Arts Tax Credits by half for 2016, and to eliminate both credits as of 2017.
ELIMINATING THE EDUCATION TAX CREDIT AND THE TEXTBOOK TAX CREDIT
In support of the Government’s commitment to improve the affordability of post-secondary education for low- and middle-income families, Budget 2016 proposes to eliminate the Education and Textbook Tax Credits, effectiveJanuary 1, 2017. These credits are not targeted based on income and often provide little direct support to students at the time they need it most. Savings realized from eliminating these credits will be used to enhance studentfinancial assistance, to help provide timely assistance to students from low- and middle-income families. Tax credit amounts carried forward from years prior to 2017 will still be claimable in 2017 and subsequent years.
Student Loan Repayment
Loan repayment threshold under the Repayment Assistance Plan will be $25,000 This change will ensure that no student will have to repay their Canada Student Loan until they are earning at least $25,000 per year up from $20,210.
DONATIONS OF REAL ESTATE AND SHARES OF PRIVATE CORPORATIONS- Gone
Budget 2015 included a proposal to provide, beginning in 2017, an income tax exemption in respect of capital gains on certain dispositions of private corporation shares or real estate, where cash proceeds from the disposition aredonated to a registered charity or other qualified donee within 30 days. Budget 2016 confirms that the Government does not intend to proceed with this measure.
RESTORING THE LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS TAX CREDIT
To facilitate access to venture capital for small and medium-sized businesses and support saving by the middle class, Budget 2016 proposes to restore the Labour-Sponsored Venture Capital Corporations (LSVCC) tax credit to 15 percent for share purchases of provincially registered LSVCCs for 2016 and subsequent tax years. The measure will provide federal tax relief of about $815 million over the 2015–16 to 2020–21 period.
TFSA Lower - December 2015 Announcements
The government has already lowered the TFSA down to $5,500 in December in the economic statement.
Budget Deficits - What happend to $10 Billion Deficit - Low Oil and Spending Impact Budget
Budget 2016 measures, the budgetary balance is expected to show deficits of $5.4 billion in 2015–16 and $29.4 billion in 2016–17. Over the remainder of the forecast horizon, deficits are expected to decline gradually from $29.0 billion in 2017–18 to $14.3 billion in 2020–21. Over $100 Billion to be added to the total deficit total from $619 Billion to $718 Billion in the 4 year term of the government.
Ontario’s Minimum Wage Remains the Highest in Canada
Ontario will raise the general minimum wage from $11.25 to $11.40 on October 1, 2016 - keeping Ontario's wage the highest of any province in Canada.
Minimum wage rates for liquor servers, students under the age of 18, hunting and fishing guides, and homeworkers will also increase at the same time.
Changes to the minimum wage are announced by April 1 and come into effect on October 1 to give businesses time to plan. This increase is the result of changes to the Employment Standards Act, 2000 that tie minimum-wage increases to Ontario's Consumer Price Index, a recommendation by the Minimum Wage Advisory Panel.
Increasing the minimum wage in a fair and predictable manner is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
Notice to Reader - Warning and Disclaimer
This monthly update was prepared on March 22, 2016
When considering any of ideas from this article, please contact the writer directly before acting on them. This will ensure that any information has been updated.
Without contacting the writer before implementing any of these items you will bear all the responsibility for any tax assessments and or business issues that may arise from this information.
Copyright @ 2016