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2024-2025

Canada's Federal Budget Highlights

The Federal government's budget on April 16, 2024 introduces changes that may affect your individual and family finances.

Reflections since the last budget*

*PERIOD BETWEEN MARCH 28, 2023 - APRIL 16, 2024

Canadian Dollar

vs. the U.S. Dollar

72.35 ¢

April 16, 2024

MARCH 28, 2023 BUDGET

72.35 ¢

S&P/TSX

Composite

72.35 ¢

April 16, 2024

MARCH 28, 2023 BUDGET

72.35 ¢

Oil Price

per Barrel in USD

72.35 ¢

April 16, 2024

MARCH 28, 2023 BUDGET

72.35 ¢

Unemployment

Rate

72.35 ¢

April 16, 2024

MARCH 28, 2023 BUDGET

72.35 ¢

Budget Highlights

Higher Capital Gains

Inclusion Rate

"Inclusion rate" will increase from 50% to 66.7% on capital gains above $250,000 per year for individuals, and on all capital gains realized by corporations and trusts.

Lifetime Capital Gains

Exemption (LCGE)

Increases to $1.25 million (from $1,016,836), with indexation of the LCGE resuming in 2026. Applies to dispositions that occur on or after June 25, 2024.

Alternative Minimum Tax (AMT)

Allows individual to claim 80% of their Charitable Donations Tax Credit when calculating AMT.

Alternative Minimum Tax (AMT)

Allows individual to claim 80% of their Charitable Donations Tax Credit when calculating AMT.

Home Buyers’ Plan

RRSP withdrawal limit increased to $60,000 (from $35,000) without tax for 2024 and subsequent calendar years, for eligible first home purchases (withdrawals after April 16, 2024). Start of the 15-year repayment period temporarily deferred to the fifth year following year of first withdrawal.

Canada Child Benefit (CCB)

CCB extended for six months after a child’s death, starting in January 2025.

Canada Carbon Rebate for Small Businesses 

A new Canada Carbon Rebate for Small Businesses in the form of an automatic refundable tax credit for eligible businesses. The tax credit would be available to Canadian-controlled private corporations with under 500 employees.

Disability Supports Deduction

Annual maximum benefit of $2,400 with expanded list of recognized expenses under the Disability Supports Deduction, effective 2024 and subsequent taxation years.

Canada Learning Bond (CLB) 

The government will open a CLB if a child does not have an RESP by age four. The CLB pays $500 in the first year the child is eligible, plus $100 for each additional year of eligibility, up to age 15, for a maximum of $2,000

Student Grants and Loans 

The Government will continue extending the increase in full-time Canada Student Grants from $3,000 to $4,200 and interest-free Canada Student Loans from $210 to $300 per week.

CPP Benefits

The expansion of benefits include:

  • Doubling the death benefit for some contributors.
  • Introducing a partial child benefit for part-time students.
  • Extending the eligibility for the disabled contributors children’s benefit beyond a parent’s 65th birthday.
  • Ending eligibility for survivor pensions if a couple is legally separated.

Ask your Advisor how these changes may impact your finances.

SOURCES: Budget 2024: https://budget.canada.ca/2024/home-accueil-en.html Canadian/US Dollar: https://www.bankofcanada.ca/rates/exchange/currency-converter S&P/TSX Composite https://ca.finance.yahoo.com/quote/%5EGSPTSE/history?p=%5EGSPTSE Crude Oil Prices: https://ca.investing.com/commodities/crude-oil-historical-data Unemployment Rate February 2024 (6.1.0%) : https://www150.statcan.gc.ca/n1/daily-quotidien/240405/dq240405a-eng.htm Trademarks owned by Investment Planning Counsel Inc., and licensed to its subsidiary corporations. Investment Planning Counsel is a fully integrated wealth management company.



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