The 2016 Federal budget is out and major changes have been announced to benefits and tax credits of Canadian taxpayers. Children and senior citizens that get the biggest slice of the cake in the first federal budget of liberal government.
Let’s have a that who gets what in this budget:
Seniors- The big winners:
- The eligibility age for Old Age Security will be fixed at 65 and will not move up to 67 as proposed by the earlier government.
- Single seniors may be eligible for another GIS supplement of up $947 per year to cover the living costs. This will about a million senior citizens in Canada
- Additional GIS supplement will now be available to those senior couples as well who are living apart. This will only be allowed in cases where the couple is apart because of medical reasons such as a case where one partner requires long term care.
Families- You won some, you lost some
- Canada Child Benefit – The maximum Canada child benefit will be $6400 annually for a child under 6 years of age and $5400 for children between 6 and 17 years of age. Families with annual income lower than $140,000 will benefit with this new plan.
- Fitness and Arts Credit- The two credits will be phased out over two years starting this year. The credits will be halved this year and will be eliminated in 2016.
Students- Easy on Debt and Hard on Tax Credits
- The students who graduate will not have to start repayment of their loans until they start making at least $25,000.
- The education and text book credit will be eliminated starting 2017. These credits amounted up to $5,580 in tax credits for students who were going to school full time up to 8 months a year.
- The Canada Student Grant has been increased by 50% for all levels of income.
Teachers- Yes you have a tax credit too !
- The teachers will be finally able to expense up to $500 for money they spend on school supplies from their own pockets.