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Budgets

We present the main measures of the latest budgets that could impact your personal finances. We leave it to your accountant to do so for those concerning businesses.


The federal budget


  1. Incentive for first-time homebuyers The maximum withdrawal limit for the Home Buyers' Plan has been raised from $25,000 to $35,000 per individual, or a maximum of $70,000 for a couple. The Mortgage and Housing Corporation, CMHC, offers an additional incentive to couples with a combined annual income of less than $120,000 to finance a portion of their home purchase through a participating mortgage. For example, this CMHC loan could represent a reduction in monthly financing costs of $228 on a $400,000 home.

  2. Allowing other types of annuities under registered plans Starting in 2020, the budget proposes to create two new types of annuities under the tax rules for certain registered plans. - Deferred life annuities at an advanced age will be permitted under a defined contribution RRSP, RRIF, DPSP, PRPP or RPP. - Variable payment life annuities will be accepted under a defined contribution PRPP or RPP. Please contact me if you think this may affect you.

  3. Registered Disability Savings Plan This measure is intended to provide appropriate recognition of the financial impact of periods of severe but occasional disability on these individuals.

  4. Mutual Fund Trusts The rules have been severely restricted for certain transactions. If you have such a trust, I encourage you to contact me.

  5. Other items of note

  • Operating a business through a TFSA

  • Increasing financial security for low-income seniors by extending eligibility for the earnings exemption to self-employment income and increasing the annual maximum to $15,000.

  • Tightened the rules for transferring a defined benefit pension plan from a former employer to an IPP.


The provincial budget

You will have read that this budget focused on Health, Education and Highways. These measures are comprehensive and affect society in general. Here are some measures that affect individuals.

  1. Experienced Worker Tax Credit: Beginning with the 2019 tax year, the experienced worker tax credit will be increased to $10,000 for those aged 60 to 64 and will remain at $11,000 for those aged 65 and over.

  2. Child Care: Starting in 2019, the minimum and maximum additional contributions will be reduced by $0.70. In 2022, no family will pay an additional contribution.

  3. Improved exemption for child support payments: With these changes, more households with child support income that are eligible for government programs will have these amounts fully exempted from the calculation of budget programs.

  4. Go Green Program: Starting in 2020-2021, there will be no rebates for vehicles priced between $75,000 and $125,000. The suggested retail price of a vehicle will be reduced to $60,000 to qualify for the $8,000 rebate. 5) Securities: Currently, there is a lack of consistency in the data sent to investors by securities brokers. Revenu Québec will introduce a new tax form that should facilitate the declaration of these transactions.


If you have any questions, do not hesitate to contact us.

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