Section 2 – Individuals and Families
- The amount that can be withdrawn from an RRSP in connection with the HBP is increased to $35,000 since March 19, 2019. Furthermore, as of 2020, the HBP eligibility criteria will be eased in the event of a breakdown of a marriage or common-law partnership.
- As of 2020, individuals who pay for a digital subscription to an eligible Canadian journalism organization can benefit from a non-refundable tax benefit of up to $75.
- Since 2019, child assistance payment is renamed “Family Allowance” and the amount granted for the second and third child is increased by $500.
- Since April 1, 2019, a second level of assistance is available as the supplement for a disabled child requiring exceptional care. The assistance is $652 per month for children with significant limitations who were otherwise not eligible for the supplement.
- Since 2019, the additional contribution for subsidized daycare services is reduced annually in anticipation of its complete elimination by 2022.
- Since 2019, a refundable tax credit of a maximum amount of $6,000 per child under the age of 7, $3,750 per child aged 7 to 16 years and $8,250 per child with a serious disability is offered in respect of child care expenses.
Section 3 - Education
- For federal purposes, as of 2020, individuals can begin benefiting from the new Canada training credit that will allow individuals between the ages of 25 and 64 to recover up to 50% of training costs in a year from a notional account where they will accumulated $250 per year, up to a lifetime maximum of $5,000.
- In New Brunswick, the tuition tax credit is reintroduced since January 1, 2019 retroactive to January 1, 2017.
Section 4 - Health, Seniors and Caregivers
- Since March 19, 2019, it is no longer mandatory to end an RDPS when the beneficiary no longer qualifies for the Disability Tax Credit.
- Since 2018, a new refundable tax credit for senior assistance is available for individuals aged 70 or over.
Section 5 - Employees
- Since 2019, the full amount of non-accountable allowances paid to elected officers is taxable.
- Since 2019, the working income tax benefit is renamed the “Canada Workers Benefit” and is increased.
- Since 2019, the tax credit for experienced workers is renamed the tax credit for career extension, the age of eligibility is reduced to 60 and the credit is increased for workers aged 60 to 64.
- Since 2019, a new tax credit based on employment income is offered to low-income individuals and families.
Section 6 - Businesses
- The capital cost allowance is generally increased for property acquired after November 21, 2018.
Section 7 - Investments
- Since January 1, 2019, the tax rate on ordinary dividends (non eligible) is higher in all provinces. In Quebec, the rate applicable to eligible dividends has also been increased.
Section 8 - Retirement Assistance Programs
- It was expected that, starting in 2019, annuitants and holders of a registered plan would be subject to tax on a benefit equivalent to 100% of the investment management fees paid from funds held outside the registered plan. Implementation of this measure has been postponed until the Department of Finance Canada completes his review of the matter.
Section 11 - Deceased Persons
- As of January 1, 2020, Ontario will eliminate the Estate Administration Tax for the first $50,000 of an estate and the period for filing an information return will be extended from 90 days to 180 days following receipt of the Certificate of Appointment of Estate Trustee.
Section 12 - Social Programs and Benefits
- Since 2019, the CPP and QPP benefits are gradually enhanced.
- As of 2020, guaranteed income supplement exemption and reduction thresholds will be increased.
- Since January 1, 2019, the health insurance exemption threshold for Ontario employers is increased from $450,000 to $490,000.
- Since April 1, 2019, in Ontario, children and youth under the age of 25 who are not covered by a private drug plan will be covered by OHIP+.
This document is up to date as of August 1, 2019 and reflects the status of legislation, including proposed amendments at this date.