The BC Government delivered its 2017 budget this week. The biggest change is the Medical Service Premiums which will be reduced by half for families with annual income below $120k.
For your convenience, here are the key measures that may be of interest to your investors:
- Medical Services Plan premiums will be reduced by 50% for households with an annual net income of up to $120,000. A typical family is expected to save $900 per year;
- The small business corporate income tax rate will be reduced to 2 per cent from 2.5 percent, and accordingly the dividend tax credit for ineligible dividends decreased. This has a knock-on effect on the combined tax rate for investment income earned by Canadian-controlled private companies and paid out to shareholders;
- The threshold for first time home buyer’s program exemption from property transfer tax will be increased from $475,000 to $500,000; and
- A number of tax credits will be introduced or extended, including tax credits for volunteer firefighters and search and rescue volunteers and individuals with school-aged children for back-to-school expenses.
For more on budget highlights, please refer to the BC government’s summary at this link, or the detailed materials here.