How has the price range affected Canadians’ retirement financial savings?
“The tax measures were pretty targeted, I thought,” she said. “There have not been any major changes so it is very helpful for people to know exactly what taxes to project into the future.”
A notable addition to the budget was the tax on luxury vehicles, which include cars costing more than $ 100,000 or boats and planes costing more than $ 250,000. There is also the additional tax on vacant property owned by non-residents, which is unsurprising as property prices across Canada are reaching stratospheric levels resulting from a confluence of low interest rates, increased savings among many Canadians, and limited housing supply just to name a few factors.
In the short term, the budget also provided some level of security for Canadians who have relied on COVID-related recovery services to get through. For seniors over 75 receiving retirement benefits, the federal government announced in August an additional payment of $ 500 that is not subject to any clawbacks or that counts towards the threshold for receiving the Guaranteed Income Supplement.
“It seems like seniors may have had a higher cost of living due to COVID, which definitely helped,” Loeppky said. “OAS payments for retirees aged 75 and over are also expected to increase by 10% from July 2022.”
Another gift from the federal government was the proposed change in the criteria for the Disabled Tax Credit, which provides an income tax deduction of approximately $ 1,300 for qualified individuals. To qualify for the DTC today, a person must be certified by a doctor that they have a severe and persistent impairment that limits their ability to perform basic activities of daily living. In the 2021 budget, the government wants to expand its list of mental functions necessary for everyday life.