2013 BC Budget Highlights
It’s traditional for finance ministers in Canada to buy new shoes on the day before they announce the annual budget. BC Fiinance Minister Mike de Jong took a new spin on this tradition and wore ice skates for the budget speech today.
Some of the highlights from today’s budget include:
1. The New BC Training and Education Savings Grant
For those born in 2007 or later and have an RESP account, their families may apply for a one-time grant of $1,200 before he or she turns seven. The family is not required to match or provide additiona contributions to earn the grant amount.
2. Earning more than $150,000?
Beginning in January 2014 the income tax rate on earnings in excess of $150,000 will be increased to 16.8% – an increase of 2.1%.
3. BC Child Tax Benefit
Beginning in April 2015 (yes, 2015) this new benefit program will come into effect. Eligible families will earn $660 per year for children under the age of six. As this is a refundable provincial tax credit, families may receive a refund of up to $660 upon filing their personal tax returns.
4. MSP Premiums
Medical Service Premiums will be increased by 4% on January 1, 2014.
5. Corporate Tax Rate Increase
The “non”-small business tax rate will increase by 1% to 11% on April 1, 2013. Last year’s budget announced that a 1% increase would occur in 2014 if warrented by the economic situation.
This budget will not be debated or voted upon until after the May 14, 2013 provincial election.