Trudeau Tax Time – October 2015

By November 24, 2015Uncategorized


The following are tax changes we might expect to see from our new Liberal majority government, assuming they follow through with their proposals during the campaign:

  • TFSA (Tax-Free Savings Account) contribution limit will be reversed back down to $5,500 per year (from $10,000)
  • A possible expansion of the CPP (Canada Pension Plan) which may lead the Ontario Liberal government to no longer pursue their proposed Ontario Retirement Pension Plan
  • Possible decrease of the amount of EI (Employment Insurance) that employees and employers are required to pay
  • Keep the OAS (Old Age Security) payments beginning at the age of 65 (as opposed to Harper’s proposal to increase the age of eligibility to 67)
  • Expand the Home Buyers Plan (allowing money to be withdrawn from your RRSPs to purchase a home) to include not only first time home buyers, but also people who are moving for work or after the death of a spouse and other life changing situations
  • Replace the Universal Child Care Benefit (UCCB); families with total income under $200,000 will receive the Child Tax Benefit which is tax-free (as opposed to the UCCB which was taxable income)
  • No more ‘family tax cut’ also known as ‘income splitting’ which allowed spouses with a child under 18 to benefit from a maximum $2,000 tax credit
  • Tax increase for those whose income is above $200,000 a year pushing the highest tax bracket over 50% (when combined with provincial rates) in the following provinces: Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia
  • Tax rates will decrease for those earning between $44,700 and $89,401 a year
  • Changes to student loan rules for post-secondary education allowing graduates to not have to make any loan repayments until they earn $25,000 a year