Positive Outcomes from Budget 2015
The Canadian federal budget for 2015 was announced yesterday, and it brings with it some consumer-friendly benefits. Dealing with a surplus this year, the government is able to provide some of the things it had promised in years past.
Commitments unveiled throughout that period, including boosting the Universal Childcare Benefit, doubling a tax credit for youth fitness and income splitting, were all included in Tuesday’s budget. Those measures are among a short list promised to Canadians in 2011, when Prime Minister Stephen Harper campaigned on them, promising to implement then so long as the government was able to balance its books. [Global News]
Some of the major highlights that affect Canadian families are:
- Boost to the TFSA cap: perhaps the biggest outcome (at least one of the most-talked about) is an increase in the Tax-Free Savings Account limit from $5,500 to $10,000.
- Family Tax Cut: families with children are now eligible for a maximum $6,600 in tax relief and benefits.
- Universal Child Care Benefit: the UCCB is increased to $160/month for children under 6, $60/month for children 6 to 17-years-old. This enhancement is to help reduce financial burden for families who have children.
- Registered Retirement Income Funds: a reduction is in place for the minimum withdrawal amount for RRIFs, down to 5.28% from 7.5%.
- Small business taxes: businesses with less than $500,000 in sales have a reduced tax rate of 9% down from 11%.
- Surplus: the government is dealing with a $1.4 billion surplus for the 2015-16 fiscal year.
