Federal Budget 2023

Mar 29, 2023

On Tuesday March 28, 2023, Finance Minister Chrystia Freeland tabled the Liberal government’s 202324 Federal Budget in Parliament, with the document subtitled: “A MadeinCanada Plan: Strong Middle Class, Affordable Economy, Healthy Future”.

Note that a Budget is a statement of the governing party’s intention. Until passed into law, its content is to be considered as proposals, particularly where the ruling party has a minority of the seats, as is the case presently. This summary highlights provisions relevant to savings, investment and financial planning of individuals, families and small businesses. We begin with a summary of current tax rates, then turn to the Budget’s themes:

Federal Income Tax Brackets & Rates
Individual Bracket Indexing 2022 to 2023
Corporations

Making Life More Affordable
Grocery Rebate
Junk Fees
Predatory Lending
Right to Repair
Common Chargers for Your Devices
Automatic Tax Filing

Health and Dental
The New Canadian Dental Care Plan
Oral Health Access Fund

Education and students
Making Life More Affordable for Students
Improving Registered Education Savings Plans

Savings and retirement
Registered Disability Savings Plans
Retirement Saving Personal Support Workers
Retirement Compensation Arrangements

Lifestyle
Protecting Passenger Rights
Air Travellers Security Charge
Alcohol Excise Duty

Small business and workers
Deduction for Tradespeople’s Tool Expenses
Credit Card Fees for Small Businesses
Employee Ownership Trusts
• Family Business Transfers (Bill C-208)

Tax compliance
Alternative Minimum Tax
General AntiAvoidance Rule

Federal Income Tax Brackets & Rates

Individual Bracket Indexing 2022 to 2023
There were no changes to personal income tax rates, other than normal annual indexing. Personal brackets have been indexed by 6.3% over 2022 levels. For 2023, the basic personal amount/credit is $15,000, incrementally reduced as income exceeds the 29% fourth bracket to $13,521 once income reaches the 33% bracket threshold.

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