The 2017 Federal Budget was released today, and with a sigh of relief, no changes were made to capital gains tax, the principal residence exemption, employer provided health plans or Netflix fees. 🙂
According to analysts, the budget consisted mostly of housekeeping type changes. Here are a few that may impact your wallet:
Adios to These Items
The public transit passes tax credit, home relocation loan deduction, and the first-time donor’s super credit for charitable donations will no longer be available.
Canada Savings Bonds are also being scrapped, citing a cost ineffectiveness in discontinuing the program. Anyone holding bonds will need to transfer them to another savings vehicle.
The Infirm Dependent Credit, Caregiver Credit, and Family Caregiver Amount will be combined into a single credit, titled the Canada Caregiver Credit. According to Global News, “the credit will provide tax relief of up to $6,883 for expenses related to the care of dependent relatives with infirmities like brothers, sisters, parents and adult children. For people caring for minor children or their spouse/common-law partner, the amount tops out at $2,150.”
In an effort to make the application process a bit easier, a nurse practitioner will now be able to sign the required forms for the Disability Tax Credit.
Medical expense credits for infertility treatments will be expanded to help offset costs not covered by insurance.
Ride-sharing services such as UBER and Lyft will now have to collect and remit GST/HST, meaning we may see prices go up to offset this change.
Parental leave has been extended to 18 months, however, EI benefits during the extended leave will be paid out at a reduced rate.
Employment insurance premiums are going up five cents to $1.68 per every $100 of insurable earnings, up from $1.63.
Starting in 2018, a new EI benefit will be introduced for caregivers.