(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

No missed business hours for AIDS Vancouver Island despite neighbouring fire

Despite some damage to their ceiling and doors, AIDS Vancouver Island returned… Continue reading

Dead tree with eagle’s nest cut down in Comox due to safety concerns

The landowner was granted a permit to remove the tree

RCMP looking for information as thrift store fire investigation continues

Too Good To Be Threw suffered extensive damage after a late night fire on Sunday

Commen-Terry: Helping Hands to benefit flood victims

Fundraising concert Feb. 7 in Courtenay for those affected by Mariner Apartment flood

Home care complaints up 45% on Vancouver Island

Number of home care hours delivered down 6%, complaints up 45 %

VIDEO: Here’s what the B.C. legislature officers are accused of buying

Personal trips, purchases, alcohol and more laid out in 76-page report by Plecas

Why would the B.C. legislature need a firewood splitter?

First sign of police involvement in investigation of top managers

New Canada Food Guide nixes portion sizes, promotes plant-based proteins

Guide no longer lists milk and dairy products as a distinct food group

YANA Online Auction runs until Feb. 8

Items include four pairs of tickets to sold-out Big Love Dinner

North Island College Activity Assistant program returns

Learn more at a free information session Feb. 6 - pre-registration required

Judge annuls hairdresser’s forced marriage to boss’ relative

Woman was told she’d be fired if she didn’t marry boss’s Indian relative so he could immigrate here

Liberals look to make home-buying more affordable for millennials: Morneau

Housing is expected to be a prominent campaign issue ahead of October’s federal election

Courtenay council approves new brewery proposal

Brewery in same neighbourhood as Whistle Stop

Most Read