2012 Federal Budget – A Summary Of The Key Tax Measures

On March 29, 2012, Federal Finance Minister Jim Flaherty delivered the majority government’s 2012 federal budget.

Key highlights of the budget:

• No changes to personal or corporate tax rates, or changes in planned indexation of personal tax brackets and tax credits.

• Limited new spending measures, with a focus on making technical adjustments to close unfair tax loopholes that are perceived to be abusive.

• Changes to the Old Age Security (OAS) and Guaranteed Income Supplement (GIS) programs to gradually increase the age of eligibility from 65 to 67 and allow for the voluntary deferral of OAS for up to five years.

• An update to the life insurance policy exemption test that may result in a reduction of the income that is permitted to grow on a tax‐sheltered basis within an exempt policy.

• A number of new measures to enhance the Registered Disability Savings Plan (RDSP).

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Tom Prasol | Mortgage Specialist, RBC Royal Bank | Greater Vancouver and the Lower Mainland | C. 778-836-6883 | F. 604-730-5550 | E. tom.prasol@rbc.com | Twitter: http://twitter.com/#!/mortgagetp | W: http://mortgage.rbc.com/tom.prasol

 

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