Fall Federal Budget: Will Spending Be Cut?

Canada has historically presented an annual budget since Confederation in 1867, even through periods like World Wars and the Great Depression, but we have recently experienced the longest period without a full federal budget in our history. By the time the next one is brought down, expected in October 2025, it will have been 18 months since the controversial April 2024 budget which introduced the doomed capital gains inclusion rate hikes. What can we expect?

In Monday’s Fall Economic Report, the Finance Minister set the stage for the performance of the Canadian economy and how the new fiscal projections in the document may impact your pocketbook and your retirement savings. There is some good news in the numbers, but as Canada prepares for a potential global economic downturn in 2020, there are some storm clouds on the horizon, too. Most significant, Canada’s accumulated federal debt is expected to hit new heights: $810 billion by 2025.

Legislation proposed on December 9 will increase the Basic Personal Amount (BPA), the maximum Spousal Amount claim, and the maximum claim for an eligible dependant. How much are these claims worth to you? We reveal the real dollar values here today.

Did you calculate whether a December 15 instalment remittance was required to top up tax pre-payments for the 2019 tax year? At this busy pre-Christmas time, it is easy to miss. For these reasons, it is so important to plan your charitable donations now and make them before year-end. They could help you reduce the amount you will owe. The big issue: the interest costs you may have to pay in the spring if you are deficient. Here is what you have to know.

A year-end reflection on the evolution of Canada’s tax system has brought some sobering observations and a special wish. Despite a dramatic shift in our economic landscape, our tax system is neither simpler or more competitive, nor is it necessarily fairer. There is much work to do.

At 8 pages, the 2019 T1 return is the longest tax form in history.  It could also be the most complex, says Evelyn Jacks, President of Knowledge Bureau, who together with special guest experts, will be hosting a 6 city national education tour in January to teach professionals about the changes to the forms, line numbers and the detailed legislation behind them. 

Keep up your credentials in 2020. If you are a Knowledge Bureau designate, be sure to update your status as per our Standards of Conduct, which require relicensing to use the designation marks at year-end. You should have received your re-licensing notice by now; if not please contact us before the holidays.