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:

“We can’t solve problems by using the same kind of thinking we used when we created them.”  Albert Einstein

There are so many reasons to count our blessings as Canadians; in the financial arena, one of them is the growth in Canadian wealth over time. While we are behind the US by 22% in terms of wealth per adult ($270,200 vs. $344,700), in Canada wealth has grown at an average rate of just under 6% in the period 2000-2016, and an average of 6.5% since 2010. Why are we so lucky?

Last week Knowledge Bureau Report discussed who’s eligible to make a moving expense claim. This week: what’s deductible and what’s not?

Are you using your automobile for work or for your own business? Perhaps you are unsure whether you should make a claim for auto expenses this year; or maybe you suspect you aren’t claiming everything you are entitled to. This is a good reason to see your tax advisor, and make sure you are prepared to make a full claim.

Who pays higher marginal tax rates: the executive earning $250,000, or the family that makes do on $60,000? If you said the family, you would be correct. That’s because marginal tax rates are higher in income brackets that are impacted by the clawback of social benefits and tax credits. But when does that happen?

In gratitude for your continued support, please accept our very best wishes for the holiday season. May it be restful, joyful and peaceful; and may your new year be blessed with good health and prosperity.