Monthly Archives: March 2019

Federal Government 2019 Budget

Some Highlights:

• Annual Deficit for 2019-2020 – estimated to be $19.8 Billion and will continue to run deficits for the foreseeable future
• Corporate Tax – no changes to federal corporate income tax rates or the small business limit for 2019
• New Canada Tax Training Benefit – includes a Training Credit of $250/year to a maximum of $5,000 and EI Training Support that includes 4 weeks of income support every four years at 55% of the worker wages
• Home Buyers’ Plan proposes first time home buyers can withdraw up to $35,000/ per person from their RRSP tax free
• Individual Pension Plans (IPPs) – assets transferred to an IPP in respect of benefits attributable to employment with a former employer that is not a participating employer will be included in the income of the member for tax purposes
• TFSA – the individual to be liable to pay income tax (at the top personal rate) on income from a business carried on in a TFSA from non-qualified investments (extended to the TFSA holder in addition the financial institution)
• Phoenix pay issues – an additional $540 million to try to fix/ stabilize the federal payroll system
• Incentives for businesses to purchase eligible zero emission vehicles – a temporary 100% first year CCA allowance
• Cap on the dollar value of stock options that can be received at a favourable tax rate
• These are just some of the details many more exist

For more details on the specific pieces of the budget that will affect you talk to your financial advisor
Greg Libbrecht, President – Platinum Books & Five Star Accounting

The City of Winnipeg and Province of Manitoba Budgets

City of Winnipeg Budget Highlights:

  • A 2.33% property tax increase.
  • About $30 million less in spending on road repair.
  • A reduction in the business tax (from 5.14% to 4.97%) and an increase in the rebate threshold (to $33,900).
  • The creation of the Department of Innovation, Transformation, and Technology.
  • A one-point reduction in the dividend transferred from water and utility rates to general revenue.
  • No new fees, and business-related fee increases are at the rate of inflation.
  • $3.15 million for driver safety shields in transit buses

You can find the full city budget at – www.winnipeg.ca/budget

Province of Manitoba Budget Highlights:

  • The major highlight is Provincial government will fulfill its election promise to reduce the PST from 8% to 7% effective July 1, 2019.
  • The projected deficit is to reduce to $360 million.
  • The amount budgeted for the film and video production tax credit has nearly doubled, to $31.5 million.
  • Federal transfers are up about $324 million compared to 2018-19.
  • Spending is flat, with an overall increase of only 0.3%, and some reductions in funding for infrastructure and post-secondary institutions.

You can find the full provincial budget at – www.gov.mb.ca/budget2019/

Thank you to the Winnipeg Chamber of Commerce for their summary of both budgets.