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:

The Canada Job Grant is a collaborative program between the federal and provincial governments designed to assist employers and employees in developing skills for success. The program is available in most provinces, and Manitoba just announced that intake 1 for the 2023-2024 Canada-Manitoba Job Grant is now open! Eligible training dates include training that began on or after April 1, 2023 and ends on or before March 31, 2024.

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CRA has received approximately 14.6 million tax returns so far this year, representing approximately half of the returns filed last year. It is clear that tax accountants are in their annual overload mode as 56% of returns received have been efiled, and despite the recent federal budget public relations push for the File My Return (FMR) for simple tax returns, the uptick has been lacking. Taxfilers who are receiving refunds are getting an average of $2,066 and those who are paying owe an average of $4,330. 

Did you know that almost 8% of Canadian families have recently declared rental income on their returns and that the highest number of those are from the Vancouver area – where over 11% of families report rental income?  This is from a Stats Canada study released in November of 2022, which also notes that the income was not high – a median amount of $2,750 in 2020.  However, the audit potential is high.  Here’s what you need to know to satisfy the tax auditor:

Who are the landlords in Canada today?  Stats Canada has found that just over four in five rental income earners were in couple families (81.0%), about 48% were aged 45 to 64 and most lived in Toronto (21.2%), Montréal (13.5%) or Vancouver (10.7%).  Net rental income was just under $5,000 for profitable ventures, but for the others, median losses of just over $3,000 were reported.  Of course, those losses could come under the scrutiny of a tax auditor, as some expenses are claimable, some are restricted and some are capital in nature.  What’s claimable is discussed below.

Will the March 28 Federal Budget further erode Canadians’ accumulated wealth with new taxes, alongside the continued inflationary and interest rate pressures that already have a significant affect? Find out the answers to this and much more at the May 24 Retirement and Estate Planning Update… a CE Summit Hybrid Learning Event, featuring the thought leadership of best-selling authors and educators in Canada. Register now!