Fall Federal Budget: Will Spending Be Cut?

Canada has historically presented an annual budget since Confederation in 1867, even through periods like World Wars and the Great Depression, but we have recently experienced the longest period without a full federal budget in our history. By the time the next one is brought down, expected in October 2025, it will have been 18 months since the controversial April 2024 budget which introduced the doomed capital gains inclusion rate hikes. What can we expect?

Note our head office staff will be taking a well-deserved family break from noon December 24, returning bright and early on January 4.  We remind you to register for the Distinguished Advisor Workshops by December 31.  For personal assistance, call us this week.  But you can still register and study online throughout the month.

Perhaps it’s the Christmas spirit. Canadians appear to be putting the warnings to curtail their debt and prepare financially for tougher times on the back burner. This according to Statistics Canada, which just released the disconcerting news that the ratio of household credit market debt to disposable income rose to 163.7% in the third quarter of 2015. That’s up from 162.7% in the second quarter. Credit market debt includes consumer credit, mortgage loans, and non-mortgage loans.

Buying real estate in 2016? Be prepared to come up with a bigger down payment. Changes to government-backed mortgage insurance rules were announced last week to maintain a healthy, competitive, and stable housing market.

On Dec. 15, the Canada Revenue Agency (CRA) announced the prescribed annual interest rates in effect from January 1 to March 31, 2016, confirming there are no changes to the prescribed interest rates since last quarter with the exception of one category:  the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

Last week, form T1135 “Foreign Asset Verification Statement” was released for 2015.  As promised, the form now includes a simplified method for reporting assets where the taxpayer owns specified foreign property with a cost base of more than $100,000 but less than $250,000.

Knowledge Bureau is excited to introduce a new convenient, online learning opportunity:  continuing professional education on video – a great new way to earn 6 CE/CPD Credits.