Federal Budget 2019
Candidates for the Fall 2019 offerings of the FPSC Level 1™ Examination and the CFP® Examination are responsible for legislation that has been passed into Law as of November 1, 2019.
Bill C-97, An Act to implement certain income tax provisions of the Budget tabled in Parliament on March 19, 2019 and other measures received Royal assent on June 21, 2019:
- introducing the Canada Training Benefit, which is a refundable tax credit aimed at providing financial support to help cover up to half of eligible tuition and fees associated with training;
- increasing the withdrawal limit under the Home Buyers’ Plan from $25,000 to $35,000 and amending how it applies on the breakdown of a marriage or common-law partnership;
- extending joint and several liability for tax owing on income from carrying on business in a TFSA to the TFSA’s holder and limiting the TFSA issuer’s liability for such tax;
- ensuring appropriate pension adjustment calculations for registered pension plans that reference the enhanced Canada Pension Plan;
- providing support for Canadian journalism including a temporary, non-refundable 15% tax credit for eligible digital news subscriptions; and
- removing the requirement that property be of “national importance” in order to qualify for the enhanced tax incentives for donations of cultural property.
Bill C-97 also amends:
- the Canada Student Loans Act and the Canada Student Financial Assistance Act to extend the interest-free period on student loans by six months and to provide for transitional measures in respect of individuals to whom student loans were made and who ceased to be students at any time during the six months before the amendments come into force;
- the Canada Pension Plan to waive the requirement for an application for a retirement pension and proactively enroll Canada Pension Plan contributors aged 70 or older; and
- the Old Age Security Act to provide, starting in July 2020, a new income exemption for the purposes of calculating the Guaranteed Income Supplement. The new exemption excludes the first $5,000 of a person’s employment and self-employment income as well as 50% of their employment and self-employment income greater than $5,000 but not exceeding $15,000.
The other personal income tax measures proposed in the Federal Budget have not yet been passed into law including:
- changing in use rules for Multi-Unit Residential Properties;
- permitting additional types of annuities under Registered Plans;
- changing Registered Disability Savings Plan for cessation of eligibility for the Disability Tax Credit;
- revising tax measures for Kinship Care Providers;
- updating the Medical Expense Tax Credit;
- restricting contributions to a Specified Multi-Employer Plan for older members;
- limiting Pensionable Service under an Individual Pension Plan;
- fixing Mutual Funds from Allocation to Redeemers Methodology; and
- restricting the carrying on of business in a Tax-Free Savings Account;
- limiting the use of the Employee Stock Option tax regime.
A personal measures proposed in the Federal Budget that has not yet been passed into law is the First-Time Home Buyer Incentive, which would make available a shared equity mortgage, which is a loan secured by a second mortgage on a property with interest on the loan waved in return for an equity interest in the property to be paid when the property is sold.