2009 Federal Budget

Below are the main highlights of the 2009 federal budget, which was presented on January 27, 2009, by the Harper government’s Minister of Finance, Jim Flaherty.

For individuals :

• Basic personal amount, under which an individual does not pay any tax, increased by 7.5% (i.e. to $10,320)
• Tops of the personal tax brackets increased, enabling taxpayers to pay a few dollars less in tax (e.g. the 15% tax rate now applies to the first $40,726 instead of the first $37,885 as before)
• Age credit increased
• Canada Child Tax Benefit (CCTB) increased for several families
• New non-refundable income tax credit for 15% of eligible home renovation expenses for personal purposes
• New income tax credit of up to $750 for first-time home buyers
• Amount that first-time buyers of residential properties can withdraw from their RRSPs without paying fees increased from $20,000 to $25,000.

For (future) unemployed individuals :

• Period of employment insurance benefit entitlements extended by five weeks
• Employment insurance premium rates frozen for 2009 and 2010 (i.e. no increase in salary deductions)

For businesses :

• Intent to reduce tax rates for businesses, which will drop from 19.5% in 2008 to 15% in 2012, maintained
• For small businesses, amount of income eligible for the reduced federal tax rate of 11% (called the small business deduction) increased from $400,000 to $500,000, retroactive to January 1
• Temporary 100% capital cost allowance (CCA) rate for computers acquired after January 27, 2009, and before February 1, 2011.Maintien  de  l’intention de réduire le taux d’imposition des entreprises, qui passera de 19,5% en 2008 à 15% en 2012. 

Source : www.lesaffaires.com