The Liberal government has tabled a second bill to enact proposals from the 2023 federal budget, as well as a few lingering pre-budget proposals.
The bill tabled Thursday, C-47, contains legislation to implement the following proposals from Budget 2023, among others:
- Boosting the limit on allowable educational assistance payment (EAP) withdrawals from RESPs to $8,000 from $5,000
- Allowing divorced or separated parents to open joint RESPs
- Including siblings as “qualifying family members” for RDSPs and extending the ability of a qualifying family member to be a plan holder
- Lowering the maximum annual interest rate that payday lenders can charge to 35% and capping payday loans
- Designating a single external body to deal with banking complaints
The bill also gives the Minister of Finance the ability to increase the coverage limit for the Canada Deposit Insurance Corp. until April 30, 2024. In the budget, the government said it would amend legislation to allow for an increase in deposit insurance and other measures during market disruptions. The CDIC limit has been $100,000 since 2005, and would be about $146,000 today if it had been indexed.
Proposals predating the federal budget also have been included in Bill C-47. One relates to the requirement for issuers of RRSPs and RRIFs to annually report the fair market value of all property held by the plans at the end of the calendar year. The requirement will be for the 2023 tax year onward.
Another concerns the tax on house flippers, which will be extended to include assignment sales. The extended tax will apply for dispositions that occur after 2022.
C-47 has passed first reading in the House of Commons.
The government’s first budget implementation bill, which includes the one-time increase to the GST credit known as the “grocery rebate,” has passed the House and is at second reading in the Senate.