Fuel Excise Tax on Hold But Inflation is Not

The U.S.-Israel war on Iran has thrown global oil prices into turmoil and there is plenty of fallout for consumers. Travelling to Europe this summer? That’s in jeopardy, as jet fuel may run out.  Looking for relief at the pumps instead? The recently announced suspended federal excise tax on gasoline, unleaded aviation gasoline, diesel fuel and aviation fuel here in Canada will soften the blow, but only temporarily: it will be zero from April 20 to September 7, 2026. Here’s what you need to know:

Are you a Gen Xer, or do you have clients who are? Did you know that 28% of this demographic (ages 37 to 52) has not saved anything for their retirement? This, according to a recent survey by DAC Sponsor Franklin Templeton*. The following case study explores Helga and Michael’s story and highlights the important role of seeking the right tax and financial advice, sooner rather than later. 

A U.S. study has found that 58% of millennials are actively saving for retirement.* That’s impressive and important because in Canada, Statistics Canada tells us that 42% of senior families are in debt, with 14% still holding mortgages, and those with consumer debt standing at 37%.* Millennials have a few important defensive tools at their disposal to help them prepare for a financially healthy retirement . One of them is to manage mortgage debt with retirement savings through new features in an RRSP under the Home Buyers Plan (HBP).

If you want to help your clients avoid FROM – fear of running out of money – you’ll want to hear dynamic, best-selling author of Master Your Retirement, Doug Nelson B.Comm. (hons), CFP, CIM, MFA™, RWM™ at the November CE Summits. Doug’s sessions are focused on the timely retirement planning issues that impact the work advisors do today in helping investors prepare for a more certain future.

The current scheme of reporting capital gains, by including 50% of taxable gains in income, may be increased to 75% depending on the results of the next election. Does it make sense for the economy and its Canadian investors to do so? Not in the absence of inflation adjusting. Here’s how the math works.

Individual income tax filing statistics for the 2018 tax year to July 2 show that more than 28.5 million Canadians have filed this season. That’s down from the nearly 30 million last year. So are average tax refunds, which now sit at $1,706 compared to $1,765. It’s an important opportunity for tax specialists to review prior filed returns and find out why, while also discussing several new tax changes occurring in 2019.

The CRA launched their “Serving Canadians Better” consultation on April 23, 2019, closing it to commentary on June 18, 2019, in the height of tax season. It wasn’t the best time to hear from tax filing pros, but the feedback proved interesting, nonetheless. Turns out Canadians really want three big improvements from their tax department.