Six ways your family finances will change after Liberal election win
Lower taxes for majority earners, but not for high-earners
The basic personal amount, which is what you can earn without paying taxes, will rise by close to $2,000 over the next four years to $15,000. The average family will ultimately save $600 from this tax cut, while high-earning families save nothing. You fully benefit from this measure if you make less than $150,605 and it gets eliminated entirely at $214,557. The overall level of tax relief from this measure sounds modest,
A break for university and college grads with student debt
Here’s something that will help grads who have struggled to land continuing well-paid work. They won’t have to start repaying their loans until they make at least $35,000 in income, and payments can be put on hold if income falls below this level. Also, new parents will be able to pause student-loan payments interest-free until their youngest child reaches age 5. For middle- and lower-income students, the Liberals will increase the amount available through the Canada Student Loans program by up to $1,200 per year.
More tax-free help for new parents
The Canada Child Benefit was one of the previous Liberal government’s success stories. Federal-government numbers show that families benefiting from this program are receiving an average $6,800 in tax-free payments annually. The Liberals say they will boost this amount by up to $1,000 per year for parents with children under age 1. Also, maternity and parental benefits will be made tax-free.
Help for frustrated first-time home buyers in Toronto
Perhaps some limited help, but NOT much help, Look for an expansion of the First-Time Home Buyer Incentive, which provides an interest-free loan to lower- and middle-income buyers to bulk up their down payment and thereby reduce mortgage costs. The proposed changes target pricey Toronto, Vancouver and Victoria by setting the maximum eligible home price in those markets at $789,000. It remains a complex program that will help a small group. That’s kind of the point – don’t do anything to turn up the heat in the housing market.
Another tax for high-earners
If you spend more than $100,000 on a car, boat or personal aircraft, you’ll have to pay a 10 per cent luxury goods tax.
Help some for seniors (including solo seniors)
There’s a small increase in Old Age Security payments for people aged 75 and older – a maximum of $729 per year. As well, the Canada Pension Plan Survivor’s Benefit will be increased by up to $2,080 per year. The survivor’s benefit goes to the spouse of a CPP contributor who has died. The benefit has long been criticized for being too small, an issue that affects women especially because they often live longer than men. Ms. Gittens said her firm’s experience with clients suggests the extra OAS money will be useful for covering the cost of medication. “Yes, they have their provincial health plans, but more and more things we see are not covered.”
Source: Globe And Mail
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