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:

In June 2016, federal and provincial finance ministers agreed on enhancements to the Canada Pension Plan (CPP).  The goal was to increase the pension available to the current generation of workers from the 25% of pensionable earnings to 33% of pensionable earnings.  But this has come with substantive premium increases, and starting in January of 2024, a second tier of additional premiums for higher earners.  Small businesses and the self employed will be particularly concerned about these increased premiums, which were officially announced on November 1.  Here are the details.

What are the rules on withdrawal?  Maximum annual withdrawal amounts are established based on life expectancies but an ability to encroach on capital is also to be provided. Only the beneficiary and/or the beneficiary's legal representatives can withdraw amounts from an RDSP.

In October, we asked tax and financial professionals “ In your opinion, is the Climate Action Incentive Payment enough to offset the rising cost of carbon taxes?” The fact that 89% felt it’s not sufficient was not surprising but the comments present some interesting insights on the challenges and potential solutions.

Yesterday’s CE Summit: Year-End Tax Planning was a hit, and it’s only the beginning of the professional development options available from Knowledge Bureau to give you the tools you need to help a variety of client profiles this upcoming tax season. Take the micro-course collection, New Issues in Year-End Tax Planning and join us at the January Advanced T1 Tax Update, which will be held virtually, as well as in Toronto and Calgary. Save on tuition with an event pass, and take note of early-bird deadlines.

In Winnipeg on November 14?   The Canadian Foundation for Economic Education CFEE.org  want to invite you to a light lunch and launch of an important new financial capability resource from 11:45 AM - 12:45 PM CDT at the Museum of Human Rights in Winnipeg, entitled: Money and You: Seniors Edition.   This event will feature guest speakers from the program sponsor, IG Wealth Management, CFEE CEO Gary Rabbior, and by video from Evelyn Jacks, the primary author. A program demo from CFEE COO Kevin Maynard will also be featured.

If you need answers to complex questions your high net worth families are asking about their income and capital after personal, corporate, trust and cross-border taxation, or when new triggers are driving financial decisions your clients want to make, working with a Real Wealth Manager (RWM™) can help you answer and execute on them.  This is particularly so in today’s complex world when financial peace of mind – and answers to tough questions – both are more difficult to come by.