With new measures such as higher RESP contribution limits and higher RRSP age limits, there’s lots in the budget that affects advisors. Here are the highlights:
> A new working income tax benefit of up to $500 for individuals and $1,000 for families as an incentive to work for low-income Canadians.
> The introduction of a new registered disability savings plan that will be available starting 2008 and will be based generally on the existing registered education savings plan design.
> The elimination of capital gains taxes for charitable donations of publicly listed securities to private foundations.
> A new $2,000 child tax credit for each child under the age of 18, which will provide personal income tax relief of up to $310 per child
> The elimination of the $4,000 limit on annual contributions for registered education savings plans in conjunction with the increase of the lifetime RESP contribution limit to $50,000 from $42,000 and the maximum Canada Education Savings Grant annual amount to $500 from $400.
> The full exemption of scholarships and bursaries that are provided to attend elementary and secondary schools.
> An end to the “marriage penalty” by increasing the spousal and other amounts to provide tax relief of up to $209 for a supporting spouse or single taxpayer who is supporting a child or relative.
> An extension of the public transit tax credit to encourage development of fare products such as electronic fare cards and weekly passes.
> An increase to the lifetime capital gains exemption for farmers, fishermen and fisherwomen and small business owners to $750,000 from $500,000.
> The permission of phased retirements that would allow an employer to pay a partial pension to an employee and simultaneously provide further pension benefit accruals to the employee.
> An increase to the age limit for converting an RRSP, to 71 from 69.
> Equalization and territorial formula financing programs that provide $2.1 billion more in the next two years from the federal government to eligible provinces and the three territories.
> More than $16 billion over seven years — including an extension of the gas tax fund for municipalities — to fund infrastructure projects such as roads and highways, public transit, bridges, sewer and water systems and green energy.
> An investment of more than $1.5 billion in the new Canada ecoTrust for clean air and climate change to help provinces and territories meet environmental objectives.
– A pledge to work with the provinces and other partners to create a Canadian advantage in global capital markets, including a common securities regulator that administers proportionate, more principles-based regulation.
– A commitment to strengthen capital market enforcement with better resources to tackle cases of fraud and stronger collaboration with provincial authorities.
– The appointment of a senior expert advisor to the RCMP to help develop and guide the implementation of a plan to improve the effectiveness of the integrated market enforcement teams.
– A proposal to update the concept of a “prescribed stock exchange” that is currently used for a variety of purposes under the Income Tax Act.
– A commitment to crack down on corporations that have avoided paying their fair share of taxes through the using tax havens.
– A rebate of up to $2,000 for those who purchase fuel-efficient vehicles and a green levy of up to $4,000 for those who purchase cars with above-average fuel-efficiency ratings.
– An investment of an additional $400 million for Canada Health Infoway to support early movement toward patient wait-times guarantees through the development of health information systems and electronic health records.
Highlights: Budget is wide ranging
- By: IE Staff
- March 19, 2007 March 19, 2007
- 17:15