Finance Canada: No More Spring Budgets

Finance Canada announced on October 7 that Canada’s federal budgets will be brought down in the fall starting with the November 4, 2025 event; a significant departure from the spring schedule (February, March or April) that has been the cycle for several decades. This is going to affect many other events as we know them, and in the annual government spending approval cycle. There will also be a new budget process for capital vs. operational expenses. Here’s what you need to know:

Income inequality has been a topic of discussion for decades.  Now, with the pandemic as the catalyst, the advent of the CERB and future income uncertainty have brought this issue and a broader one – the right to a basic minimum income – some increased momentum.  There may be a simpler solution to help people immediately, and at the same time remove the controversy around incentives to work.

The federal government has raised the amount that can be claimed for meals under a variety of provisions in the Income Tax Act by 35%, from $17 to $23 a meal or $69 a day.  The last change occurred in 2009.  The new amount is generous, as the purchasing power of a 2009 dollar today is 83% of its value. If adjusted for inflation, the $17 meal in 2009 would cost $20.53 in 2020. More good news:  the change is retroactive to January 1, 2020.  There are three groups of taxpayers who will be cheering:

This year’s DAC Conference brings together an esteemed faculty of speakers whose thoughtful focus will be on rebuilding financial confidence for the thousands of clients the audience will serve this year.  It’s a groundbreaking and must-attend event, and the only one-of-its kind for tax, bookkeeping and financial advisors who wish to meld skills and collaborate to raise the bar in providing high value services to their clients.  Featured topics and speakers are:

Knowledge Bureau is pleased to recognize the achievements of its graduating class July 2019- June 2020 at the Virtual Distinguished Advisor Conference (DAC), October 28-30.  Be sure to find yourself and/or your colleagues and friends on the honor roll and graduating class list of Designates below. Congratulations are in order for all!

Check out our new calendar for your fall studies. Now is the time to enrol to study on your own time with online training or try and interactive Virtual Class Option. Act by September 15 to take advantage of early registration offers.

In 2019, the average Canadian family spent 42.6% of their household income on taxes according to a new study by the Frasier Institute.  Yet, they spent only 36.2% on the basic necessities of life, including housing, food and clothing. The issue for tax and financial professionals is:  what can be done to tip the scales in favor of funding basic necessities now, while preparing for a future that could include taxes, inflation, and unemployment?  Six strategies appear below.