This Month’s Poll

The automobile deduction limits raised — the CCA ceiling for passenger vehicles to $39,000 plus tax for 2026. In your opinion, is that high enough?

The Speech from the Throne indicates that the government will be following through on several promises made in the last election. Promises for seniors include enhancements to Old Age Security (OAS) and the Canada Pension Plan Survivor’s Benefit. For the disabled, a new Canadian Disability Benefit will be introduced, along with an employment strategy and improved processes to determine program and benefit eligibility. Here are the details:

The 2019 Federal Budget proposed an annual cap of $200,000 on stock options granted to employees by "large, long-established, mature firms."  This cap is on the value of the shares at the time the options are granted. More details were set to be delivered in the 2020 Federal Budget, including information from the consultations with Canadians. It's information we're still waiting for, however, the government did recommit to its implementation during yesterday's Throne Speech. Here’s what we know now:

When the new Canada Recovery Benefits become available later this month, it will come with a cost.  If the recipient’s net income for the year from other sources exceeds $38,000, they will be required to repay 50% of the lesser of the CRB received and their net income in excess of $38,000. 

Financial and insurance advisors, lawyers, accountants, bookkeepers, tax practitioners and gift planners…

According to a September 11 report from Stats Canada, households increased holdings of financial assets and reduced non-mortgage and consumer debt during the second quarter this year. The household debt service ratio, which is the total obligated payments of principal and interest on credit market debt over household disposable income, had the largest decline on record. It dropped from 14.54% to 12.40%.  Incredibly, there was only $1.58% of credit market debt for every dollar of household disposable income. But, is the good news temporary?

The extended September 30 filing deadline hasn’t arrived yet. But, according to the most recent processing statistics from the CRA, there are still 2019 returns outstanding.  And, with this unusual tax season soon to be behind us, top-of-class tax and financial advisors must start immediately to help Canadians manage tax debts, maximize remaining social benefit payments and plan to reduce taxes payable in 2020. It’s a tall order.