(Pexels)

Federal tax changes come into effect as new year begins

Changes at the federal level will affect just about every Canadian, as well as small businesses

The new year brings with it tax changes at the federal level that will affect just about every Canadian, as well as small businesses.

One of the first changes workers will see is an increase in Canada Pension Plan premiums coming off their paycheques — the first of five years of hikes to pay for enhancements to the pension plan.

RELATED: Bills to grow bigger in 2019 for B.C. residents

Employment Insurance premiums, on the other hand, will drop by four cents for every $100 of insurable earnings.

Meanwhile, the small business tax rate is going down from 10 to nine per cent. But changes to how much so-called passive income a small business can hold are also coming into effect, which is expected to push some businesses into paying a much higher corporate tax rate.

Also in 2019, low income workers can qualify for an increase in the Canada Workers Benefit. But they will have to wait until 2020 to receive the extra money.

The federal government’s new carbon pricing system will also come into effect in provinces that don’t have carbon pricing mechanisms of their own, resulting in higher costs for fossil fuels by April, and direct rebates to partly offset the increased costs.

Conservative Opposition Leader Andrew Scheer is already gearing up to make it an issue leading to the October federal election, calling 2019 the year of the carbon tax.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Sylvan Lake breaks ground on new water reservoir project

Town Council and staff were present at the ground breaking of the new reservoir, June 17

Mural for Sylvan Lake Community Food Bank underway

The 40 foot mural is a paint-by-number design in order to involve the community

VIDEO: Sylvan Lake celebrates 1913 Days

Sylvan Lake’s birthday celebration featured new events and annual favourites, June 14-16

Association of Communities Against Abuse continues to broaden its reach

The Stettler-based organization is set up in 13 other communities throughout East Central Alberta

Plans for public boat launch to Sylvan Lake an eventual project

Lacombe County says they plan to work with surrounding municipalities on the project, eventually

Raptors announcer credited with calming massive crowd after shooting

Matt Devlin, the Raptors’ play-by-play announcer since 2008, was praised for preventing panic from spreading

Two people arrested after Wetaskiwin vehicle theft

Wetaskiwin RCMP respond to theft of motor vehicle

Sexting teens at risk of harms including depression, substance use: study

Use of alcohol, cigarettes and marijuana were also found to be associated with sexting

Deadline for cabinet to decide future of Trans Mountain expansion is today

International Trade Minister Jim Carr described the decision as ‘very significant’

UPDATE: Two shot, two arrested at Toronto Raptors victory rally

The team and several dignitaries, including Justin Trudeau, remained on stage

Oil and gas sector cautious as deadline on Trans Mountain decision nears

Trudeau government expected to announce whether it will approve pipeline for second time on Tuesday

Feds announce $50M strategy to fight dementia

Emphasis is on prevention and and supporting caregivers

Federal Liberals’ plan to help first-time homebuyers to kick in weeks before election

Ottawa to pick up 5% of a mortgage on existing homes for households that earn under $120,000 a year

Most Read