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?

Canada has a new government.  The 338 new Members of Parliament (MPs) are tasked with taxing and spending Canadians’ money to achieve a myriad of goals, and they are lawmakers.  They receive handsome remuneration for doing so.   Not dissimilar to the role of professional tax and financial advisors, MPs are advocates for their constituents and stewards of their precious resources, and their roles do intersect, if they are to deliver on Job #1.  Filing their tax returns can be a challenge too, given their compensation structure.

It’s April 30 and there has rarely been more confusion about a tax filing deadline than in 2025!  Not only is CRA’s Auto-fill My Return (AFR) service unreliable, the tax filing deadlines themselves have shifted:  April 30 for most people, May 1 for trusts with capital gains, June 2 for T1s with capital gains and June 16 for T1s with small business income (proprietorships).  Even the income tax filing statistics seems off.  Have a look:

Knowledge Bureau congratulates Michael van Lierop and his whole team at NOW – New Outlook Wealth in Winnipeg for graduating with the RWM™ designation.  In this interview with Michael, who has also taken a leadership role at the Acuity Conference for Distinguished Advisors, November 23-26 in Puerto Vallarta, Mexico as a Platinum Sponsor,  we find out more about his innovative firm, his passions and how the RWM – Real Wealth Management – framework has been a game-changer.

Especially for tax planners and financial advisors:  we are transitioning to a new economy with a new government.  Gain critical insights into tax efficient retirement and estate planning to help your clients mitigate risk.  Mark your calendar to attend Canada’s most current virtual continuing educational summit from Knowledge Bureau on May 21.  Learn about the new Liberal government’s proposals for 2025 and beyond and earn a new credential, too: Knowledge Bureau’s new CE Summits – Advisory Diploma,  Register now to May 15 and save up to 50%.

Are you claiming all the medical expenses you or your clients might be entitled to? 

Last time we discussed ways to save money on a severance package using an RRSP and other important tax planning options. In the final instalment of this series, we’ll discuss other accounts to tap to meet cash flow needs, the tax consequences of challenging the amount of severance and a little-known tax trap when it comes to EI (Employment Insurance).