The Importance of Provincial Budgets: Elbows Up and No Bracket Creep!

Some of the right things are happening in Nova Scotia, from the perspective of improving standards of living in that province.  And that’s important news because according to the Fraser Institute, Canadians have suffered the worst five-year decline in their standard of living over the 2020-to-2024 period since the Great Depression.  It notes, our Gross Domestic Product (GDP) per person decreased by 2.0% (0.4% annually) ; this despite aggregate GDP growth of 1.5% over the period.  Further, all ten provinces are experiencing stagnation, which is unique in our history.  So what’s the good news in Nova Scotia, at this critical juncture?

Tax specialists add tremendous value over and above the role of a traditional tax preparer. Rather than just calculating and filing the annual return, they offer holistic tax planning advice to reduce a family’s overall tax liability over the long run. They certainly use their knowledge, experience and skills to maximize refundable and non-refundable tax credits in the short term; but their long-term role is deeper and broader.

The September 15 instalment deadline is looming. Many dread yet another payment to the CRA; after all, it seems like only yesterday that personal and business taxes due over the spring and summer were paid! Now is the time for tax and financial professionals to contact clients, estimate taxes owing for 2018, and navigate through taxing times if there is a cash flow crunch.

The Canada Caregiver Credit (CCC), new in 2017, is still poorly understood and a complicated tax break to explain. For these reasons, many Canadians have missed claiming it. Tax and financial advisors who really want to help families under medical stress can make a big financial difference will add it to their year-end review and adjust 2017 tax returns for missed claims.

Resources for family caregivers in Canada are improving— a necessity, considering three in ten people over the age of fifteen have taken on the responsibility of caring for a family member, according to a 2012 Statistics Canada report.* However, the Employment Insurance Family Caregiver Benefit and the Canada Caregiver Credit continue to be underutilized and poorly understood.

Ian Wood, Assistant Vice President, Business Development, at Cardinal Capital Management, Winnipeg, is a graduate of Knowledge Bureau’s Master Financial Advisor (MFA™) and Real Wealth Manager (RWM™) programs. He says that his Knowledge Bureau education has helped him differentiate himself from his competitors, by providing him with a more detailed understanding of tax and financial planning topics. Here’s his story.

Single, self-employed Canadians have struggled with mortgage lending requirements for many years. But that’s all about to get easier starting on October 1, as new guidelines will improve borrowing eligibility of current or aspiring proprietors.