BC Finance Minister Carole James delivered the province’s 2019 budget update on February 19, 2019. The budget anticipates a surplus of $274 million for the current year, $287 million for 2020 and $585 million in 2021.
The biggest announcements are:
- BC Child Opportunity Benefit
- Interest Free Student Loans
BC Child Opportunity Benefit
The BC Child Opportunity Benefit covers all children under 18 and can be applied for starting in October 2020. (This replaces the Early Childhood Tax Benefit where the benefit ended once a child turned six.)
Starting October 2020, families will receive a refundable tax credit per year up to:
- $1,600 with one child
- $2,600 with two children
- $3,400 with three children
Families with one child earning $97,500 or more and families with two children earning $114,500 or more will receive nothing.
Interest Free Student Loans
The provincial portion of student loans will now be interest-free effective as of February 19, 2019. The announcement covers both current and existing student loans.
Medical Services Premium
As previously announced in the last budget, effective January 1, 2020, the Medical Services Premium (MSP) will be eliminated. In last year’s budget update, MSP was reduced by 50% effective January 1, 2018.
Public Education System
The public education system will receive $550 million in additional support.
Pharmacare program will be expanded with an additional $42 million to cover more drugs, including those for diabetes, asthma and hypertension.
To learn how these changes will affect you, please don’t hesitate to contact us.
Several key changes relating to personal financial arrangements are covered in the Canadian government’s 2018 federal budget, which could affect the finances of you and your family. Below are some of the most significant changes to be aware of:
The government is creating a new five-week “use-it-or-lose-it” incentive for new fathers to take parental leave. This would increase the EI parental leave to 40 weeks (maximum) when the second parent agrees to take at least 5 weeks off. Effective June 2019, couples who opt for extended parental leave of 18 months, the second parent can take up to 8 additional weeks, at 33% of their income.
The government aims to reduce the gender wage gap by 2.7% for public servants and 2.6% in the federal private sector. The aim is to ensure that men and women receive the same pay for equal work. They have also announced increased funding for female entrepreneurs.
Effective for 2021 tax filings, the government will require reporting for certain trusts to provide information to provide information on identities of all trustees, beneficiaries, settlors of the trust and each person that has the ability to exert control over the trust.
Registered Disability Savings Plan holders
The budget proposes to extend to 2023 the current temporary measure whereby a family member such as a spouse or parent can hold an RDSP plan on behalf of an adult with reduced capacity.
If you would like more information, please don’t hesitate to contact us.