Insurance, Investments and Group Benefits

There are proposals in the recent Federal Budget that are important to you, your family and your business. Here’s
our handy tip sheet to help you manage your finances.

Highlights

Home ownership
measures

New tax-free first time home savings account:

• Up to $40K in tax deductible contributions; tax free
  growth and withdrawals
• Doubling first time home buyers credit, first time
  buyers’ incentive, home accessibility credit
• New multi-generational home renovation tax credit

Programs give people more ways to save for first home and gives families tax breaks when adding units to home to accommodate senior and disabled relatives

• Develop home buyers Bill of Rights
• Increase housing supply

• House flipping and assignment sales being taxed

Healthcare

Increased health transfers to provinces and territories:

• Dental care phase in targeting family households
  earning < $70K; children, seniors and those living
  with disability

Help with Pandemic expenses, deal with surgical backlogs Increasing support for lower income families starting with dental

• Enhanced coverage for medical expenses and access to Medical Expense Credit

Expanding definition of “patient” and eligible expenses

• Targeting Canada Pharmacare Bill by end of 2023

So people have access to affordable prescription drugs

Small and medium
size business

Small business deduction:

• Raise phase out ceiling from $15 Million of taxable
  income to $50 Million.

Leaves companies with more after tax cash for reinvestment, profits, funds to pay for benefits, funding contingency plans

Employee Ownership Trust:

• Looking at new dedicated trust under Income Tax Act

Aimed at enabling broad-based employee ownership of companies, supporting business succession, spreading wealth and promoting economic resilience

Corporation tax changes:

• Substantive Canadian Controlled Private Corporations (CCPCs) are taxed on passive income as if they
  remained CCPC

Level playing field for all private corporations regarding tax on passive income; leaves corporate owned life insurance strategies as sound alternatives to reducing tax on passive income

Intergenerational Wealth Transfer:

• Government collaborating with key stakeholders to facilitate genuine family business transfers

Government making this a priority, eliminating uncertainties in transfers of family businesses

Emissions Reduction Plan:

• Multiple investments and incentives in innovation and clean technology

Create incentives for consumers, businesses and investors to protect the environment

Taking care of our aging population and their pensions

Amending Pension Benefits Act and Pooled Registered Pension Plans Act:

• Create expert panel to study idea of Aging at
  Home Benefit

• No details of review on other disability credits and benefits

Improve long term security and sustainability of federally
regulated pensions

Long Term Care:

• $3 billion over five years, starting in 2022-23 with conditions to be worked out with provinces and territories

Response to long-standing  criticism of funding for our aged

Mental Health initiatives Support:

• $100 Million set aside over 3 years

Pandemic has emphasized  and increased long-standing need for support