The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

Filing a tax return is difficult as the playing field is one of constant change:  the tax rules are in flux, particularly in the 2024 tax filing year,  with all the uncertainty around the capital gains provisions.  But in addition, taxpayers have undergone many financial and life event changes since their last T1 filings, each of which must be identified for each family member.  Here’s a primer for new year conversations between advisors and clients that cuts through the noise:  what matters is what you keep!

Will proposed tax hikes for certain capital gains incurred after June 24, 2024 survive now that Parliament has been prorogued? Maybe not, but at this time, the proposals have not officially died for tax filing purposes and in fact, CRA has confirmed on January 7 that it will administer the provisions as if passed for the 2024 tax filing year.

With Parliament prorogued with the resignation of the Prime Minister, and CRA’s announcement that it will administer the proposed changes to the capital gains inclusion rates, the capital gains deduction and other provisions of the April 16, 2024 budget, many have questioned how this is possible given that the proposals, and the related Notices of Ways and Means Motions (NWMM) have not been passed into law.  

Learn with Peers from Coast-to-Coast at Canada’s renowned Advanced T1 Tax Update, plus receive the Knowledge Bureau ‘Tax Bible’. All Students Receive Our Comprehensive Line-By-Line Knowledge Journal, Online Tax Course, Evergreen Explanatory Notes Research Library, PLUS PowerPoint Presentations from Expert Presenters! This year’s lineup includes Evelyn Jacks, Kim G C Moody, Joanne Thomas, and Ruth Horst. We invite you to check out the detailed agenda, learn more about our illustrious speakers and register by Jan 10 for early-bird tuition savings!

Check out our new courses and educational calendar all leading down the pathway to Specialized Credentials and Continuing Education Credits.  You can register now, start today and study from anywhere with convenient online training options, including a special offer on DMA™ Programs with tuition savings until February 15 – and of course our rookie and technical CE Savvy Summit tax schools that start January 15 with the Advanced Personal T1 Tax Update.

The DMA™ Distinguished Master Advisor is a technical specialist in one or more financial disciplines: personal tax, corporate tax, accounting, or small business management and business transition services. Register by February 15 to earn new specialized credentials that build confidence, bring new solutions and build new networks!