Does the new Federal Budget impact you? Download our free commentary and find out!

Millards Chartered Professional Accountants has released their Federal Budget Commentary Special Report in response to the 2023 budget tabled by Finance Minister Chrystia Freeland this week. 

Joshua Laporte, CPA, CA & Partner at Millards Chartered Professional Accountants says that “the Federal Budget Commentary outlines important budget items and we encourage our clients and the community to download and review it. The 2023 Federal Budget will have an impact on many Canadians and we want them to understand how the budget applies to them.”

The Canadian Federal Budget for 2023 was unveiled on March 28, 2023, with a focus on a clean economy and measures to assist Canadians with the high cost of living. The government says that the budget, which consists of 255 pages, aims to strike a balance between fiscal restraint and targeted spending for vulnerable Canadians.

Laporte says some of the items that will have an impact on Canadian small businesses, families, students, and seniors.

“For those struggling with the cost of living, the federal government is proposing a one-time grocery rebate for 11 million low and modest-income Canadians.”

Eligible couples with two children could receive up to $467, seniors could see $225, and a single person could be eligible for $234. Additionally, the increase in excise duties on alcoholic products has been capped at 2% for one year, starting from April 1, 2023. This move was widely criticized by microbrewers, distillers, and the federal opposition parties.

To prevent predatory lending, the government is planning to amend the Criminal Code to cap the amount of interest that can legally be charged at 35%, which is meant to prevent predatory lenders from taking advantage of “some of the most vulnerable people in our communities,” according to the budget.

For students, Laporte says the budget proposes increasing financial assistance for post-secondary students to help them pay off their debts.

“The budget details plans to increase Canada Student Grants by 40%. That could mean up to $4,200 for full-time students.”

The Canada Student Loan limit is also set to increase from $210 to $300 weekly, and the requirement for mature students — classified as aged 22 years or older — to undergo credit screening to qualify for grants and loans will be waived for the first time.

For those planning to travel in the next year, the budget proposes $1.8 billion over five years to the Canadian Air Transport Security Authority (CATSA) to improve screening wait times and strengthen security measures at airports. Travelers will also see an increase in the Air Travellers Security Charge, with air passengers on a round trip domestic flight expected to pay $19.87, up from the current $14.96. On international flights, the rate will rise from $25.91 to $34.42.

One of the largest categories of spending in the spring budget is health care and Laporte points out that the changes to dental health come just in time to offset the anticipated increases.

“The federal government has proposed doubling the cost of the federal dental program, with projected costs set to more than double.”

The budget also outlines $83 billion in clean economy tax credits in a bid to compete with U.S. incentives. Additionally, the federal government is directing $13.8 million towards safe sport to promote sports that prioritize the health and safety of athletes.

The 2023 Canadian Federal Budget aims to address concerns over the high cost of living and increase support for vulnerable Canadians while also promoting a clean economy. The government is taking steps to strengthen air passenger rights, provide financial assistance for post-secondary students, prevent predatory lending, and expand the dental care plan, among other initiatives.

Download the Millards Professional Accountants Federal Budget Commentary Special Report now and find out how the 2023 budget impacts you, both professionally and personally.