The 2022 Federal budget was announced last week and I thought it might be handy to know how it applies to you and your family.
You can find many versions of the budget and the highlights online or in print of course, but this version will focus on my genius grandparent audience and their children and grandchildren.
If you need to understand how the budget has tried to help the small and medium sized businesses (they need all they can get!), or any other program the government has targeted, then you can find loads of information in other blogs, and I encourage you to do so. Especially if you or one of your family members owns and operates a small business.
With that in mind, I have selected what I believe to be three very interesting new plans that could benefit you directly or perhaps a family member. Pensions, first time home ownership and renovations to homes to accommodate seniors and disabled relatives and health and dental care.
Let’s dive in…
Taking care of our aging population and their pensions
Amending the Pension Benefits Act and Pooled Registered Pension Plans Act (Aimed at improving long term security and sustainability of federally regulated pension):
- Create expert panel to study idea of aging at home benefit
- No details of review on other disability credits and benefits
Long Term Care (Response to long-standing criticism of funding for our elders):
- $3 billion over five years, starting in 2022-23 with conditions to be worked out with the provinces and territories
Mental Health Initiatives Support (Pandemic has emphasized and increased long-standing need for support):
- $100 million set aside over three years
Home Ownership Measures
These new programs give people more ways to save for their first home and give families tax breaks when adding units to home accommodate senior and disabled relatives.
New tax-free first time home savings account:
- Up to $40k in tax deductible contributions; tax-free growth and withdrawals
- Doubling first time home buyers credit, first time buyers’ incentive, home accessibility credit
- Develop home buyers Bill of Rights
- Increase housing supply
- House flipping and assignment sales being taxed to curb excessive profits and tax speculators
Increased health transfers to provinces and territories:
- Dental care phase in targeting family households earning less than $70; children, seniors and those living with disability
- Help with pandemic expenses, deal with surgical backlogs; increasing support for lower income families, starting with dental
- Enhanced coverage for medical expenses and access to Medical Expense Credit which will expand the definition of “patient” and eligible expenses
- Targeting Canada Pharmacare Bill by end of 2023 to help people have access to affordable prescription drugs
That is a snapshot of the 2022 Federal Budget. I hope you or someone you know finds it useful.
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THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.