2015 federal budget analysis (podcast)
The Minister of Finance Joe Oliver presented his first Federal Budget in the House of Commons yesterday (April 21). This is the Conservative Government’s final budget before an election later this year. Many incentives in the budget actually do not come into effect until 2016 and later, which means the Conservatives will need to be re-elected for these measures to be received.
Traditionally, seniors have the highest voter turnout rates of any demographic and there are a number of proposals in the budget directed to them. Changes to the minimum RRIF withdrawal amount, the new Home Accessibility Tax Credit, expansion of the compassionate care benefits and the increase in TSFA limits are all announcements directed their way.
Small businesses were not left out as the government announced a reduction in the small business tax rate, a reduction in EI premiums and accelerated CCA claims for manufacturers.
While there were a number of new benefits in the budget, there were no new taxes. The budget was balanced by tapping into the $3 billion contingency fund that is normally maintained for unforeseen events, such as natural disasters. With a much smaller contingency, the Conservatives will have less wiggle room if the economy does not grow as expected in the coming year.
Our podcast provides details on a number of the budget announcements including:
- Reduction of the small business tax rate
- Reduction of EI premiums
- Reduction of minimum RRIF withdrawals
- Increase in TSFA contribution room
- Changes to the T1135 reporting
- Non-resident employer withholding exception
Listen to our 2015 Canadian Federal Budget Podcast
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Part 1: Introduction by Gordon Jessup   (download)
The 2015 Canadian Federal Budget: Minister of Finance Joe Oliver presented his first budget and the final budget of the Conservative government before an election later this year. This definitely is a pre-election budget with many incentives being offered. Some of the announcements will not come into effect until after the election and with the opposition parties denouncing the budget, it means that the government would need to be re-elected for these benefits to be received.
Part 2: Budget Proposals That Benefit Seniors by Andy Yap   (download)
The 2015 Canadian Federal Budget proposed to reduced the minimum withdrawal rate for seniors from their registered retirement income fund, introduced  a new non-refundable home accessibility tax credit, and extended the Compassionate Care Benefits under the Employment Insurance program.
Part 3: Tax Cuts and Deductions That Benefit Small Businesses by Derek Wagar   (download)
The 2015 Canadian Federal Budget proposed to reduce the small business tax rate, reduce the Employment Insurance premiums, and to accelerate the capital cost allowance rate on manufacturing and processing equipment. These measure are all positive for small businesses.
Part 4: Streamlined Withholding Requirements for Non-Resident Employers by Frank Casciaro  (download)
The 2015 Canadian Federal Budget announced measures to streamline the Canadian payroll tax withholding requirements for non-resident employers by providing an exemption to the Regulation 102 requirement for qualifying non-resident employers on payments made to qualifying non-resident employees.
Part 5: TSFAs, Foreign Asset Reporting, Donating Private Share and Real Estate Proceeds by Gordon Jessup   (download)
The 2015 federal budget announced an increase in the annual TSFA contribution limit, a reduction in the reporting on form T1135 and the exemption from capital gains tax where proceeds from the sale of private company shares and real estate is donated to charity.