Blog: October 24, 2017 Fall Economic Statement

October 27th, 2017

On October 24th, 2017, the Minister of Finance presented his Fall Economic Statement including draft legislation to implement the following changes:

  • Starting July 2018, due to the implementation of indexation two years earlier than originally proposed, tax-free Canada Child Benefit (“CCB”) amounts for families with two children will go up by approximately $200. The year after, families will receive an additional $500.
Effects of Indexation Beginning in the 2018-19 Benefit Year  
CCB amounts and phase-out thresholds ($) Current Benefit Year 2018-19 2019-20 (projected)
Maximum amount per child under 6 6,400 6,496 6,626
Maximum amount per child aged 6 through 17 5,400 5,481 5,591
First income threshold 30,000 30,450 31,059
Second income threshold 65,000 65,975 67,295

Indexation: 1.5% for 2018 and 2.0% (projected) for 2019

  • As previously announced, the small business tax rate will be reduced from 10.5 per cent to 9 per cent by January 1, 2019. The dividend gross-up and dividend tax credit rates are amended accordingly.

Please contact your Crowe BGK advisor should you require any additional information.

 

Authors: Sam Lackman, CPA, CA, and Jennifer Warner, LL.B., LL.M Tax

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