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:

Most people will have received – or are about to receive – their first pay of 2024 and there will be some changes to note.  In particular, the Canada Pension Plan premiums have increased and that is becoming the subject of some controversy of late.  Is this really the right time to burden taxpayers and small business owners with these extra taxes, or is it time to take a pause?  The Employment Insurance (EI) premiums have also risen and some tax free benefits and tax provisions that were available through COVID have ended. The T4 slips are due on February 29 with some new information require on group dental plans as well.  Overall, payroll clerks may find they need to sharpen up their skills to explain well.

While Albertans are paying 9 cents more at the pumps after their gas tax was reintroduced after a two year pause from a 13 cent tax, Manitobans began to enjoy a 14 cents per litre gas tax holiday in January, which over 6 months will provide a household with 2 cars about $250 in savings and combined savings to individuals, business and municipalities are projected to be $163 Million.  That’s a nice boost into the economy which is projected to feature a 2% inflation rate.   But, will this filter down into consumer advantages at a retail level?  Possibly.

In just one week we’ll be discussing all the news pros need to know for tax season 2024!  There are over 120 tax filing and planning milestones, over 60 changes on the tax forms and schedules and 28 key legislative changes that will substantially affect tax planning in 2024. Check out the detailed agenda and register by January 15 to save on tuition fees. 

We are excited to welcome back our corporate sponsors to DAC 2024 – November 10-12 in Montreal:  Franklin Templeton and Johnston Group.  It’s going to be another outstanding sold out event, so we urge you to reserve your sponsorship and speaking topics, as well as all attendee delegate registration by the early registration deadline of February 15.  Hotel rooms at the beautiful Hotel Birks are expected to sell out quickly as well.

Happy New Year 2024!  May your year it be filled with good health, good friends and good fortune! To start out the year, Knowledge Bureau Report invites you to share our new interactive Calendar of Educational Events and our Top 3 Picks for the Breaking Tax and Economic News stories of 2023 that will shape the conversations tax, accounting and financial professionals will have in 2024!  See if you agree:   

With all the challenges Canadians are facing making dollars stretch these days, there is some good news on the horizon: Tax Season 2024!   It’s going to be full of a multitude of tax changes that can lead to a potential refund, increased tax free credits, especially if RRSP season is purposeful in reducing family net income.  But for some, a balance due to CRA will come with high interest charges if it can’t be paid by the April 30 filing deadline.