2015 Federal Budget Updates
On April 21st, our Finance Minster tabled the 2015 Federal Budget. The initiatives include the introduction of the family tax cut, the expansion of the universal child care benefit, and an increase to the child care expense deduction.
The budget forecasts continuing surpluses, projecting $1.7 billion surplus for the 2016-2017 fiscal year growing to a $4.8 billion surplus in the 2019-2020 fiscal year.
Among the various changes, there were no increases to personal or corporate taxes for 2015; however, the small business tax rate is proposed to decrease by 2% over the next 4 years. Our government also reduced minimum required Registered Retirement Income Fund (RRIF) withdrawals for seniors.
To view the tax highlights from the 2015 federal budget, please click here.
New Annual Contribution Limit for TFSAs
The recent Economic Action Plan 2015 also proposed an increase in the TFSA annual contribution limit from $5,500 to $10,000 effective January 1, 2015. The annual limit will not be indexed to inflation.
For those of you who have TFSA accounts with Assante, you can immediately take advantage of this new limit. We will be in contact with you to discuss any questions you may have or feel free to call or email your advisor at your convenience.
To view the press release in your browser, please click here.