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Issue #58 - "Budget 2018 Update"

2018 Budget Update

Finance Minister Bill Morneau released the 2018 Federal Budget on February 27th in what is being billed as the “Budget that could have been a lot worse”.  It is most notable for what was not done to the tax code, as opposed to what was.  The following is a concise summary of the changes that may affect you and your family. 


What’s New

  1. Canada Workers Benefit

Replacing the existing Working Income Tax Benefit, the 2018 budget expands the amount of tax credits awarded to low-income earners.  In large part, this change is lauded as a great way to encourage capable individuals to make the move from unemployment and welfare to gainful employment.  

  1. CPP Enhancement

The Canada Pension Plan Enhancement will be phased-in in 2019.  This enhancement will include increased payouts for both parents who take time off of work to care for young children or individuals with severe and prolonged disabilities.  Increases to benefits for those who lose their spouse under the age of 45 as well as for those who remain disabled beyond age 65 were also included in this budget.

What Hasn’t Changed

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What’s New

What Hasn’t Changed

Spending & Other Areas of Interest

All in all, this budget was lacklustre given that all the big changes affecting small business owners were announced throughout 2017.  Bruised and beaten from the combination of the minimum wage increase, the elimination of income splitting, and the potential threats to NAFTA, business owners are breathing a sigh of relief that no other surprises are on the horizon, at least in the near term.


Mackenzie Investments:  “2018 Federal Budget Bulletin”: https://www.mackenzieinvestments.com/en/products/tax-and-estate-planning/2018-federal-budget-summary
CALU:  “Special Report on Budget 2018”:  https://www.calu.com/securefiles/CALUSpecialReport/CALU-Special_Report_re_2018_Federal_Budget-final_for_posting.pdf


Innova Wealth Management is a trade name of Aligned Capital Partners Inc. (ACPI). Jean-François Démoré, as an agent of Innova Wealth Management/ACPI is registered to provide investment advice in the provinces of Ontario, Quebec, and British Columbia. Investment products are provided by ACPI, a member of the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and the Canadian Investor Protection Fund (www.cipf.ca). All non-securities related business conducted by J-F Demore as a representative of Innova Wealth Builders is not covered by the Canadian Investor Protection Fund and is not under the supervision of ACPI.

The information contained herein was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any securities mentioned. The views expressed are those of the author and not necessarily those of ACPI.