Federal budget | Six measures that affect you

Published at 16:08

Karim Benessaye

Karim Benessaye
Press

Frame


PHOTO BY EDOUIR PLANT-FRECHET, LA PRESSE ARCHIVE

At the heart of the homeownership incentive is the creation of a new tax-exempt savings account (TFSA) set aside for the purchase of the first property, valued at $725 million in five years. The new buyer will be able to invest $40,000 there, up to a maximum of $8,000 per year, tax-free and tax-free investment income, which he can then use for his down payment. The tax credit for the purchase of a first home will also be doubled, increasing from $5,000 to $10,000, making it eligible for a refund of up to $1,500 — effectively $1,252.50 for Quebec taxpayers. The measure will affect houses purchased from 1uh January 2022 and will cost 675 million by 2027.

Parents


PHOTO FRANCOIS ROY, LA PRESSE ARCHIVE

To help those who want to become parents comes a series of measures totaling 72 million over five years. “Whether they’re struggling with fertility issues, in a same-sex couple, or just wanting to be a father or mother on their own terms, some Canadians are turning to surrogacy and costly procedures to start their family’s family. dreams,” it says. Medical expenses associated with a surrogate mother or a sperm, egg or embryo donor will now be eligible for the tax credit. Fees paid to fertility clinics and donor banks in Canada for receiving sperm and eggs will also qualify.

Another check for $500


PHOTO by IVANO DEMERS, LA PRESS ARCHIVE

It’s not just Quebec that will send $500 checks in the coming months. The terms are different, but Ottawa will offer exactly the same amount, totaling $475 million next year, in a lump sum payment to “those who have difficulty accessing affordable housing,” “who have difficulty paying their housing costs. We do not yet know the details about this service, which “will be announced later.” It complements Canadian Housing Assistance, a program launched with the provinces in 2020 with $4 billion in funding over eight years.

electric vehicles


PHOTO BY OLIVIER PONTBRIANT, LA PRESSE ARCHIVE

The subsidy of up to $5,000 for the purchase or long-term lease of electric vehicles, plug-in electric hybrids and hydrogen fuel cells is extended for three years. The program has benefited from 136,000 buyers or renters since 2019 and will be extended through at least 2025 at a total cost of $1.7 billion. No funds are planned for the next two years. The conditions remain the same: if the vehicle is designed for six passengers or less, the Manufacturer’s Suggested Retail Price (MSRP) must not exceed $45,000. Vehicles with seven or more passengers can cost $55,000.

Beer and vaping


PHOTO TONY DEJAC, CANADIAN PRESS ARCHIVE

From October next year, vaping liquids will be subject to federal excise tax. This will be $1 per 2ml of liquid for containers up to 10ml, then $1 for each additional 10ml. Ottawa expects to raise $654 million over five years with this new tax. We will also correct the discrepancy regarding taxes on beer with a low alcohol content of less than 0.5%. Unlike wines and spirits in this category, beer was subject to excise tax. This tax will disappear 1uh next July. Cost of this little flower for non-alcoholic beer drinkers in Ottawa: $9 million over five years.

banks


PHOTO BY DAVID BOILY, LA PRESS ARCHIVE

Consumer complaints about banks could be dealt with more effectively. If it were up to the Trudeau government, a single non-profit organization would be responsible for this component. The fact is that the current head, the Banking and Investment Ombudsman (OBSI), a position created in 1996, has no enforcement powers. Several banks, including Royal Bank and TD, renounced his powers and chose their own intermediary. “Banks should not be able to choose which complaints body they participate in,” the budget documents say. “Targeted” legislation has been announced to bring these complaints to a single independent external body.

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