Highlights from the Latest Federal Budget
On March 28th, 2023, Finance Minister Chrystia Freeland tabled the latest federal budget. The following is a brief summary of the most relevant budget proposals that may impact you.
→The First Home Savings Plan is confirmed. We will explore this new savings option in more detail in another article.
→The alternative minimum tax (AMT) rules will be expanded to apply to more high-income earners.
→ The qualifying family members measure for RDSPs will be extended by three years to 2026 and will be expanded to include siblings 18 and older.
→RESPs: The maximum educational assistance payment (EAP) withdrawal for the first 13 weeks of enrollment will be increased to $8,000 (full-time students) and $4,000 (part-time students).
→ A new grocery rebate will be available for those in receipt of the Goods and Services Tax Credit (GSTC).
→ Employee ownership trusts (EOT) will be available to facilitate business succession between business owners and employees starting January 2024.
→The deduction for tradespeople’s tools will be doubled from $500 to $1,000, effective 2023.
→The budget introduced several tax credits and other incentives introduced for businesses producing and manufacturing clean energy.
→Public corporations will be subject to a new 2% tax on share buybacks
→ Inflation adjustment on the excise tax for beer, spirits and wine temporarily capped at 2% for this year.
→ Canada Student Grants (CSG) will increase by 40%.
→The Government has negotiated with MasterCard and VISA to lower credit card fees for small business.
If you would like any further details on any of these measures and how they may affect you, please do not hesitate to reach out.