Posted by & filed under Canadian Economy, Taxation & Planning.

List of a few Budget Highlights

Hiring credit for small business

Last year’s budget introduced a
temporary Hiring Credit for Small Business of up to $1,000 per employer. The
2012 budget proposes to extend this temporary credit for one year. In
particular, a credit of up to $1,000 against a small employer’s increase in its
2012 Employment Insurance premiums over those paid in 2011 will be provided.

Discussion Question: Why do you think the govenment continued the above hiring credit?

Travellers’ exemptions

The budget proposes to increase the travellers’ exemption to:

  • $200 (from $50) for
    returning Canadian residents who are out of the country for 24 hours or      more.
  • $800 for travellers who are
    out of the country for 48 hours or more. This new $800 threshold will  replace the current 48-hour exemption of $400 and the current
    seven-day  exemption of $750.

The new exemption levels will be effective for travelers returning to
Canada on or after June 1, 2012.

Discussion Question:Do you agree with this budget idea to motivate Canadians to spend more outside of Canada?

Old Age Security and Guaranteed Income Supplement

As expected, the budget contains measures affecting seniors’ retirement
income.

Eligibility age
The age of eligibility for Old Age Security (OAS)
and Guaranteed Income Supplement (GIS) will be gradually increased from 65 to 67, starting April 2023, with full implementation by January 2029. This
measure will not affect anyone who is 54 years of age or older as of March 31, 2012. In particular, individuals born on March 31, 1958 or earlier will not be affected. Individuals born on or after February 1, 1962 will have an age of eligibility of 67. Individuals born between April 1, 1958 and January 31, 1962 will have an age of eligibility between 65 and 67.

Discussion Question: Why is the government increasing the age of retirement?

To read more about the budget: See KPMG report

Leave a Reply

Your email address will not be published.