There are some major changes to Canada and B.C. on January 1 and there are a few that you should know about, as you might be affected by them.
Healthcare premiums are rising in B.C.
Watch out for monthly healthcare premium increases starting Friday. For singles, the rate will rise by $3 to $75, and for families, it’ll rise by $6 to $150. That equals about a four per cent increase.
Tax cuts for the Canadian middle class.
Prime Minister Trudeau promised a tax cut to the middle class in the throne speech and in his platform, and he’s making good on his promise. Starting January 1, the middle income tax bracket will be reduced from 22 per cent to 20.5 per cent. The middle income tax bracket includes anyone earning between $44,700 and $89,401 per year, a representation of over 300,000 Canadians.
Tax-Free Savings Account contribution limits will change.
If you have a tax-free savings account, you’ll only be allowed to contribute half as much to it each year starting January 1. The annual limit will drop from $10,000 to $5,500, meaning more of your personal investment capital will be taxable. Read more about TFSA’s here.
More support for students.
The Canada Student Loans Program will no longer cut support to working students for every dollar they earn over $100 a week. Learn more about the Canada Student Loans Program here.