New Federal Budget and Tax Time

The new Federal Budget dropped on March 19, 2019 during a time when many Canadians are thinking about their 2018 Tax Filing returns. What do you need to know?

A Number Of Perspectives

We offer a few different perspectives on the Budget features and proposed changes.

  • PWC provides a specific list of changes from a technical perspective: CLICK HERE.
  • CBC provides a fact check on the Federal Budget assumptions: CLICK HERE

It appears the Federal Budget was designed to appeal to struggling homebuyers, seniors, those needing job retraining and other targeted groups.

Grant Thornton’s Federal Budget Highlights March 2019

An Investor’s Perspective

From an investor’s perspective, the prospects of slower economic growth points to a focus on fiscal management and Debt to GDP ratios is a common benchmark. The current government use this “debt service ratio” as its fiscal anchor not a budget target. This can be interpreted to mean, similar to governments before, it does not aim to reduce debt but instead to maintain a stable rate of just over 30% of debt to GDP. It was not a budget to reduce debt.

Entrepreneurs: Have the “Money Talk”

Time to have the “Money Talk”. Financial and Tax Planning are common catalysts in the first quarter of each year, regardless of when you file your taxes. Our Advisors at Hampton Securities would recommend entrepreneurs take it a step further. It is an ideal time to have the “Money Talk” with family and partners to safeguard your Estate Plans and confirm they are up-to-date. While it begins with a Will, it is not a ‘one and done’ process.

Your Estate and Business Succession Plan is Dynamic

There have been significant changes to Estate Law in the last Federal Budget. Implications of an aging population and prevalent challenges around the legal treatment of mental competency create a common sense need for succession planning. We suggest it is an opportune time to take a fresh look at your Estate Plans. The upcoming Federal Budget on March 22, 2017 will offer another strong incentive to review your business Succession and Estate Planning needs.

Your Will and the Estate Plan that surrounds it, is like you and your family – it is dynamic. In addition, there is new legislation that may impact your Estate Plan, such as the treatment and record keeping requirements for your principle residence. Also consider your health care directives, formerly living wills, need to be updated to be effective with recent changes. In both cases, there are new requirements that business owners and their families need to be aware of.  Ensure your business is anchored to a proactive estate plan. We encourage you to contact your Hampton Securities Advisor or call us at 1-877-225-0229 to help you have the “Money Talk”.