Budget Changes that Could Change Your Budget
Author: Sound Choices
April 21, 2021
The content in the article below is meant for Canadian investors only.
Personal finance highlights from the 2021 Federal Budget
Yesterday, the federal government released its 2021 budget, its first in more than two years. In these unprecedented times, the deficit for 2020-2021 reached $354 billion, lower than the prediction of up to $382 billion. This budget shows the debt-to-GDP ratio falling to 49.2% by 2025-2026.*
The budget – titled A Recovery Plan for Jobs, Growth, and Resilience – features a few items that could have an impact on your financial plan.
- National early learning and childcare system with a goal of $10/day on average for childcare within five years
- Post-secondary education and job skills development initiatives
- Over 75: One-time OAS payment of $500 in August (for those who will be 75+ as of June 2022), and OAS payments increasing by 10% annually (starting in July 2022)
- Funding for long-term care and Age Well at Home initiatives
- 1% annual tax on the value of vacant or underused residential real estate owned by foreign non-residents, beginning in 2022
Small or medium-sized businesses
- Extension of pandemic-related programs – Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS) and Lockdown Support
- Canada Recovery Hiring Program subsidizing some of the extra costs incurred as businesses reopen
- Funding for new technologies and innovation – including the Canada Digital Adoption Program to help small businesses improve efficiencies and move online
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