Canadian Federal Budget 2015

Canadian Federal Budget 2015

On April 21, the Conservative government released the 2015 federal budget. While there are many aspects we could cover about this budget, we want to share how this budget could have an affect on you! Below are some of the items included for the average Canadian:

Increase in childcare benefits

With the new budget come improvements to the Universal Child Care Benefit and the Child Care Expense Deduction. At a cost of 2.7 billion dollars, the Universal Child Care Benefit will be increased to $160 per month for all children under 6 and $60 per month for all children between 6 and 17 years old. To learn more or register, click here. Canadian families have until May 1 to apply.

The Child Care Expense Deduction is also being increased from $7,000 to $8,000 for children under 7. This is used to help families cover daycare or other childcare costs.

Income Splitting

Income splitting will allow Canadians to shift up to $50,000 from a higher earner to their spouse, allowing for up to $2,000 in tax savings. Unfortunately, this won’t help many low-income families and is estimated to benefit roughly 15% of Canadians.

TFSA Savings Limit Increase

If you are a high-level saver, the good news keeps coming. Canadians with a Tax Free Savings Account will now be able to save up to $10,000 annually – up from $5,500 previously. If you aren’t saving, now is the time to start!

Financial help for post-secondary students

Starting in 2016, parents of post-secondary students will not have to contribute as much to ensure their children can get the student loans they need to complete their schooling. Students will now also be able to work while completing their studies without having to worry about a reduction in their Canadian student loans.

Students in half-year programs will now also qualify for Canada student grants, an area of funding that was previously unavailable to them.

These are just a few of the ways the 2015 Canadian federal budget are expect to help Canadians across the country. For full details on the budget, click here.