(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

Fire at Canyon RV Resort

Small fire contained to storage shed and immediate vicinity

Man caught driving drunk with three young children in car

Multiple calls to RCMP for driver swerving back and forth on highway through Kootenay National Park

Jointly-hosted tea at museum

Strawberry Social 2 p.m. June 15th at museum grounds

The pen is mightier than the board

Local group of kids plans to put out regular newsletter as fundraising initiative

Celebrate Pride in the Park at 2nd annual event

Weekend of festivities June 14-15th

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Slain friend motivates rookie football player to make it with hometown B.C. Lions

Jaylen Sandhu, stabbed to death in 2014, a source of inspiration for promising RB Jamel Lyles

Home care for B.C.’s elderly is too expensive and falls short: watchdog

Report says seniors must pay $8,800 a year for daily visits under provincial home support program

B.C. ‘struggling’ to meet needs of vulnerable youth in contracted care: auditor

Auditor general says youth in contracted residential services may not be getting support they need

Pair of B.C. cities crack Ashley Madison’s ‘Infidelity Hotlist’

Data from the website reveals Abbotsford and Kelowna hottest spots for cheaters

Cranbrook RCMP seek help finding missing man

Jeffrey Edward Burns was last seen on the evening of Sunday, June 16.

Life’s work of talented B.C. sculptor leads to leukemia

Former Salmon Arm resident warns of dangers of chemical contact

Billboard posted along B.C.’s Highway of Tears to remember missing and murdered Indigenous women

Billboards featuring Indigenous artwork to be placed in Surrey, Kamloops and near Prince George

Federal cabinet ministers visit Edmonton, Calgary, in wake of TMX approval

Natural Resources Minister Amarjeet Sohi is set to visit Trans Mountain Corp.’s terminal in Edmonton

Most Read