Spring Economic Statement: April 28, 2026

April 15, 2026: Ottawa, Ontario - Yesterday, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that he will table the Spring Economic Update 2026 on Tuesday, April 28, 2026. In the Spring Economic Update 2026, the government will provide an update on its plan to build the strongest economy in the G7, and outline additional actions taken to drive prosperity, play to Canada’s strengths, and support Canadians where and when they need it most.

Sheila's daughter is a full-time student and her son-in-law works part-time so he can care for their little girl.  Sheila opened an RESP when her grand daughter was born and is delighted to see that the Canada Education Savings Grant is contributing 40% on the first $500 of RESP contributions that she makes each year!  Not only that, the $500 Canada Learning Bond was deposited to the RESP during the first year and there has been an additional $100 each year since! Tax preparation is all about asking the right questions so you client doesn't miss any credits or deductions. CRA just released a new Tax Tips page called Top things families should know about taxes that you can use to open the discussion with your client. Topics include RRSPs, child care expenses, child benefit amounts, the Working Income Tax Benefit (WITB), the Children's fitness amount and many more. What's more, the page links to helpful calculators, allowing taxpayers to estimate some benefits. These calculators are available for Child benefit amounts, the WITB and the GST/HST credit. This page is not only for tax preparers ñ financial planners will find it useful as well. For example, consider new RESP applications as illustrated in the example above. Since 2005, the income-tested Canada Learning Bond and additional CESG has been available.  Depending upon the income level of the parents of the beneficiaries, various CESG rates and enhancements apply. In order to qualify for the Canada Learning Bond the parents have to receive the National Child Benefit Supplement. Use the Canada Child Tax Benefit calculator to show your clients whether or not they should expect an extra $500 in their RESP account! Clients opening RESPs for grandchildren should take note of this if their children are students or just getting established in the workforce, as it is the parents' income that is tested. ADDITIONAL EDUCATIONAL RESOURCES: January Line by Line Tax Update Journal, Essential Tax Facts: 2011 Edition      

April's husband died last year.  She was employed, but took time off to nurse him while he was ill and then took several months to recover after his death before returning to work.  Even with her EI benefits, the CPP death benefit, and CPP survivor benefits, her income was low enough to qualify for the WITB of about $400. It may be a sign of the state of our economy over the past year, but a surprising number of clients seem to be qualifying for the Working Income Tax Benefit.  Just last week, an experienced tax preparer filed three claims for the WITB.  Here are some other examples of who qualified (names changed to protect the taxpayers). Bob graduated high school in 2009 and was only able to find part time work throughout 2010.  With only earning $12,000 from employment in 2010, he qualified for a WITB of over $1,000. Susan was working in retail in northern BC and could no longer afford the costs of living in the far north so she sold her home and moved further south.  She was able to continue working for the same retail chain but after claiming her moving expenses, her net income was reduced so much that she was eligible for over $1,000 in WITB. Although the WITB was enacted to provide tax relief to low-income individuals and families, and to provide incentive for Canadians to enter the workforce, it seems to be hitting a much larger target.  Here is a summary of the eligibility requirements: A resident of Canada age 19 or older is eligible for the WITB if he earned income from employment or business or taxable scholarship or research grant income in excess of $3000. Income for individuals without eligible dependents is capped at $16,770, and for families the cutoff is $25,854. A resident younger than 19 living with a spouse or common-law partner and/or his child may qualify for the WITB. There are additional criteria. Students without eligible dependents who are enrolled for more than 13 full-time weeks in 2010 are not eligible for the WITB. People who are exempt from tax for a period, such as diplomats and their families and/or employees, do not qualify. A resident who spent more than 90 consecutive days in prison is unable to receive the WITB as well. There is a Disability Supplement available for individuals who qualify for the WITB and the Disability Tax Credit. Maximum amounts available will vary. Some provinces and territories have added additional requirements for WITB eligibility. Residents of Alberta, British Columbia, Nunavut and Quebec have implemented provincial reconfigurations that affect this benefit. ADDITIONAL EDUCATIONAL RESOURCES: EverGreen Explanatory Notes

Look to your Knowledge Bureau team for complete coverage of the March 22 federal budget and the April 12 Manitoba Budget

How many people have you run into lately who are trying the "cash" diet? Do you remember the last time you paid for groceries with actual money? Well, debt-reduction regimes are the rage this year, and one that tax and financial advisors can help their clients address this tax season as a part of the discussion of deductible and non-deductible debt. To help initiate the discussion, there are two new reports on household debt in Canada which may be of interest. Last month, the Task Force on Household Debt released its report, Debt Crunch: Policy Recommendations for addressing Canada's Record Level of Household Debt.  Higher interest rates will likely exacerbate mortgage and debt defaults and reduced consumer spending, putting a damper on the economy. In the report, financial stakeholders are given responsibility for proactive measures to slow down the debt accumulation in this country. Consumers are encouraged to do their part as well. The report articulates the most compelling reason for overspending: "A lack of general awareness around daily financial decisions and transactions is a risk to overall consumer financial well-being. In particular, consumers behave differently when using credit than when using savings to make purchases, making larger purchases with credit without the associated feeling of money "leaving their pockets." This speaks to the need to study and discuss behavioral finance as an issue, as well. In his article Back to Old Fashioned Savings, CIBC economist Benjamin Tal notes that the Canadian savings rate is at an all-time low, lagging the U.S. savings rate by 1.6%. He points out that Canadians have been saving passively through increased value of their homes. But, the housing market is expected to soften and Canadians will be forced into active saving - putting real dollars into savings vehicles ñ to shore up their personal net worth statements. Mr. Tal predicts that, as in past recessions, reduced spending on non-essentials will result, in order for Canadians to find the extra money to put away each month. With those observations in mind, it is important for advisors and clients to discuss a plan for tax reduction and active savings opportunities. And while chats about cash flow and household balance sheets may not generate immediate compensation for the advisors, a solid professional financial practice must provide this service with a long-term outlook in mind. Advisors who can help clients and their families achieve financial stability now, will deepen relationships as well as strengthen balance sheets. Taking the time to read more about this topic and finding the right tools and resources to recommend is a worthwhile endeavor. Additional Educational Resources: MASTER Your Real Wealth ñ How to live your life in financial security<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com🏢office" />

Canada Revenue Agency is warning taxpayers about identity theft during Fraud Prevention Month. There are some interesting tips for tax and financial advisors and their clients to discuss with the whole family on how to protect yourself from fraud, including: (a) not sending personal info by email, (b) notifying the government when your address has changed, and (c) keeping passwords and access information private. Taxpayers are also advised to shred confidential information - even unsolicited credit card applications can be used to steal your identity. During this spring break month in particular, make sure that you don't leave signs that you are away - have your mail picked up by someone you trust or arrange to have it held at the post office. Another good observation: don't broadcast your travel plans on Facebook. Also check your credit rating annually to make sure that someone else is not using your identity. In addition, The Canadian Foundation for Advanced Investor Rights just released A Report on A Decade of Financial Scandals. Recent Canadian financial fraud cases were studied and findings point to a fragmented regulatory system that impedes investigation and prosecution. The report recommends a major consumer education campaign, enhanced fraud detection capability and dedicated legal resources to combat financial fraud. Registrants should be regulated by an organization with a compensation fund and the authority to order compensation when it is justified. The Canadian Securities Administrators also provides resources for Canadians to learn about investment fraud. The CSA website includes descriptions of various schemes and warnings about demographic target groups. The "Investor Tools" section is particularly helpful. In this time of economic belt-tightening Canadians cannot afford to lose hard-earned assets through investment fraud. The proliferation of the internet has made it easier to reach potential victims and many computer users may not be aware of how vulnerable they are. Providing clients with tools, particularly on-line resources and reports such as these can help to educate our clients about these dangers, and hopefully prevent fraud as well. ADDITIONAL EDUCATIONAL RESOURCES: Financial Literacy: Assessing Risk and Return

On July 1st, 2010, the Province of Nova Scotia raised the Harmonized Sales Tax rate from 13% to 15%. Included in the 2010 provincial budget were measures to offset this increase for low-income taxpayers. The Nova Scotia Affordable Living Tax Credit is a refundable tax credit paid quarterly, and the Poverty Reduction Credit is a quarterly payment to those receiving Social Assistance through the Income Assistance Program. The Province of Nova Scotia also made a very important commitment to low-income seniors in the 2010 budget. Anyone receiving the Guaranteed Income Supplement would no longer have to pay provincial income tax! In Nova Scotia the basic personal amount is $8231 and the age amount is $4019 for a total of $12,250. When the low-income tax credit is factored in, a single senior in Nova Scotia will pay provincial tax when taxable income (line 260) exceeds approx. $13,955. Subtracting the maximum OAS payment for 2010 ($6222) from this amount results in an income of $7733 for GIS purposes (assuming that it is not employment income). The cut-off for GIS for single, widowed or divorced pensioners for the current quarter is $15,888, so there are lots of senior GIS recipients in Nova Scotia paying provincial tax. This measure to eliminate provincial tax for GIS recipients is not currently administered by CRA. This means that, for the 2010 income tax filing, the province will rebate seniors the full amount of the net provincial tax paid. There is no application form as eligibility will be determined by information from the tax return. Rebate cheques will be mailed during the summer and fall of 2010, so Nova Scotia seniors are encouraged to file on time to avoid delay. ADDITIONAL EDUCATIONAL RESOURCES: Advanced Tax Preparation and Research