Terra Cotta Private Wealth shares BDO’s summary of the recently released Federal budget.
On April 21, 2015, the Honourable Joe Oliver presented his first budget as Minister of Finance. Following announcements of tax relief in the months leading up to the budget, the government has delivered on its commitment to balance the budget. Even with the steep drop in oil prices, the budget provides additional tax cuts and spending in key areas which will help bolster support for the government in this election year.
The deficit reported for the 2014-15 fiscal year is $2 billion which is down from the deficit of $2.9 billion predicted in last year’s budget. The government is predicting a surplus of $1.4 billion for 2015-16 and $1.7 billion for 2016-17. However, there is very little wiggle room as the contingency reserve was reduced to only $1 billion.
- Deficit of $2 billion for 2014-15
- Projected surplus of $1.4 billion for 2015-16
- Small business tax rate reduced from 11% to 9% over 4 years
- TFSA contribution limit increased to $10,000
- RRIF minimum withdrawal amount reduced