2024-2025
Canada's Federal Budget Highlights
The Federal government's budget on April 16, 2024 introduces changes that may affect your individual and family finances.
Reflections since the last budget*
*PERIOD BETWEEN March 28, 2023 - April 16, 2024
Canadian Dollar
vs. the U.S. Dollar
72.35¢
April 16, 2024
March 28, 2023 BUDGET
73.39¢
S&P/TSX
Composite
$21,642.87
April 16, 2024
March 28, 2023 BUDGET
$19,657.53
Oil Price
per Barrel in USD
$85.28
April 16, 2024
March 28, 2023 BUDGET
$73.37
Unemployment
Rate
6.1%
April 16, 2024
March 28, 2023 BUDGET
5.0%
Budget Highlights
Higher Capital Gains
Inclusion Rate
"Inclusion rate" will increase from 50% to 66.7% on capital gains above $250,000 per year for individuals, and on all capital gains realized by corporations and trusts.
Lifetime Capital Gains
Exemption (LCGE)
Increases to $1.25 million (from $1,016,836), with indexation of the LCGE resuming in 2026. Applies to dispositions that occur on or after June 25, 2024.
Alternative Minimum Tax (AMT)
Allows individual to claim 80% of their Charitable Donations Tax Credit when calculating AMT.
Home Buyers’ Plan
RRSP withdrawal limit increased to $60,000 (from $35,000) without tax for 2024 and subsequent calendar years, for eligible first home purchases (withdrawals after April 16, 2024). Start of the 15-year repayment period temporarily deferred to the fifth year following year of first withdrawal.
Canada Child Benefit (CCB)
CCB extended for six months after a child’s death, starting in January 2025.
Canada Carbon Rebate for Small Businesses
A new Canada Carbon Rebate for Small Businesses in the form of an automatic refundable tax credit for eligible businesses. The tax credit would be available to Canadian-controlled private corporations with under 500 employees.
Disability Supports Deduction
Annual maximum benefit of $2,400 with expanded list of recognized expenses under the Disability Supports Deduction, effective 2024 and subsequent taxation years.
Canada Learning Bond (CLB)
The government will open a CLB if a child does not have an RESP by age four. The CLB pays $500 in the first year the child is eligible, plus $100 for each additional year of eligibility, up to age 15, for a maximum of $2,000
Student Grants and Loans
The Government will continue extending the increase in full-time Canada Student Grants from $3,000 to $4,200 and interest-free Canada Student Loans from $210 to $300 per week.
CPP Benefits
The expansion of benefits include:
- Doubling the death benefit for some contributors.
- Introducing a partial child benefit for part-time students.
- Extending the eligibility for the disabled contributors children’s benefit beyond a parent’s 65th birthday.
- Ending eligibility for survivor pensions if a couple is legally separated.
Ask your Advisor how these changes may impact your finances.
SOURCES: Budget 2024: https://budget.canada.ca/2024/home-accueil-en.html Canadian/US Dollar: https://www.bankofcanada.ca/rates/exchange/currency-converter S&P/TSX Composite https://ca.finance.yahoo.com/quote/%5EGSPTSE/history?p=%5EGSPTSE Crude Oil Prices: https://ca.investing.com/commodities/crude-oil-historical-data Unemployment Rate February 2024 (6.1.0%) : https://www150.statcan.gc.ca/n1/daily-quotidien/240405/dq240405a-eng.htm Trademarks owned by Investment Planning Counsel Inc., and licensed to its subsidiary corporations. Investment Planning Counsel is a fully integrated wealth management company.
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