💰 A May 15 tax deadline? Higher instalment thresholds? More refundable tax credits?
Canada’s November 5 federal budget proposes significant changes affecting individuals, families, self-employed professionals and businesses.
Here are six developments worth watching.
1️⃣ PERSONAL TAX DEADLINE — MAY 15
The government proposes moving both the T1 filing deadline and balance-due date to May 15 for all individuals, including self-employed taxpayers.
📅 Proposed effective year: 2027 tax returns, generally filed in 2028.
⚠️ The existing deadlines remain in place unless legislation changes them.
2️⃣ HIGHER TAX INSTALMENT THRESHOLD
For taxpayers outside Quebec, including Ontario, the proposed threshold rises from $3,000 to $7,500.
The change would apply to taxation years beginning in 2028.
Qualifying individuals whose primary income comes from a business could also make one annual instalment instead of four quarterly payments.
3️⃣ MORE SUPPORT FOR LOW-INCOME FAMILIES
A proposed one-time 2027 Canada Groceries and Essentials Benefit Supplement would provide up to:
✅ $339 for a single person without children.
✅ $679 for a couple with two children.
Actual entitlement depends on income and family circumstances.
4️⃣ REFUNDABLE CANADA CAREGIVER CREDIT
The budget proposes making the federal Canada Caregiver Credit refundable.
This could help eligible lower-income caregivers who currently cannot fully use a non-refundable credit because they owe little or no federal income tax.
5️⃣ BUSINESS INVESTMENT TAX DEDUCTIONS
The budget confirms plans to proceed with the proposed Productivity Mega Deduction.
Qualifying investments could receive accelerated deductions, including immediate expensing for eligible assets.
📌 Business owners should verify asset eligibility, available-for-use requirements and legislative status before purchasing equipment.
6️⃣ GST/HST CHANGES FOR HEALTH SERVICES
Qualifying massage therapy services would become GST/HST-exempt under proposed rules.
Certain cancer-treatment devices would also qualify for zero-rating.
Health practitioners must review the effect on billing and input tax credits.
⚠️ IMPORTANT: PROPOSED IS NOT ENACTED.
A budget announcement does not automatically change the law.
💡 ASRANICPA TAX PLANNING TIP
Review your instalment obligations, benefit eligibility and planned capital purchases—but do not change filing practices or GST/HST billing solely because of a proposal.
💬 Which proposed change would make the biggest difference to you or your business?
AsraniCPA – Your Trusted Accountant
🇨🇦 https://asranicpa.ca/tax-assistant/
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