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?

According to a Statistics Canada report on March 31 labor market trends, job losses are starting to occur in Canada, for the first time in 26 months, with the unemployment rate ticking up to 6.7%.  Some of this can be attributed to tariff uncertainty.  But, amongst the 1.5 million unemployed people in Canada, 44% lost their jobs due to a layoff in the last 12 month and that means, doing a T1 return for 2024 will require specialized knowledge in reporting severance.  Here’s a primer on what to know:

Did you know that total health care spending in Canada is estimated at over $9,000 per person and is estimated by Health Canada to be between 10.9% and 13.4% of the Gross Domestic Product (GDP), and that the average out-of-pocket health care cost was $1,189 per capital in 2022.  With a shrinking GDP on the horizon through a potentially recessionary period ahead, it’s important to know which of the numerous out-of-pocket expenses will qualify for the Medical Expense Tax Credit (METC) claimed on Line 33099 of the T1 General tax return.  Today, we discuss medical travel costs, moving for medical reasons and other medical deductions you don’t want to miss on your tax returns. Here’s an overview:

Coming THIS EASTER WEEKEND, A NEW LEAP - Knowledge Bureau’s new digital home. Check it out!  We have Grand Opening tuition offers available to you as new and returning visitors, April 17 to April 21! VIP Graduates, your offers come first to your email on April 17. For everyone else, we invite you to explore the new 2025-2026 Curriculum and the Four New Pathways to Upskilling - from entry level to mastery level - and receive a $50 tuition credit to use now until June 30.

“The Future is No Clearer”. This according to the Bank of Canada Governor who announced on April 16 that he is holding interest rates at their current level.  Nonetheless, Knowledge Bureau will tackle the subject with authority and practicality at the May 21 CE Summit.  The subjects:  Tax Year 2025 - New Taxes or New Benefits across the Provinces and with a new federal government.  Also, Planning with Trusts – Bare Trust, Special Trusts, Post-Mortem, Retirement Income Planning across four client profiles and embracing wealth planning opportunities with tax efficiency.  Get the whole story, interpret it and share your knowledge during our live virtual CE Savvy Summit on May 21.  Save Money, Register by May 15. Here’s more:

Are you missing the T slips you need to accurately file tax returns this year?  It’s CRA’s problem, but the consequence is on the taxpayer. Here’s the backdrop and what you can do to help clients avoid paying penalties and interest for missing slips:

Canadians find themselves in an eagerly awaited election campaign in which MPs (Members of Parliament) will make decisions about how to collect and spend your tax dollars.  Are you ready to interview these candidates for their job?   Here are 13 questions – a baker’s dozen – you might wish to draw from to help you decide on the qualifications.  But, you won’t get to ask them all - political candidates aim to spend no more than 90 seconds on any doorstep to give a quick pitch and ask for support – so choose wisely and listen to answers carefully.