(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

RCMP, ERT attending incident at Cheam First Nation

Few details are available about the incident, which saw more than a dozen police cars attend

Chiefs kick off exhibition pre-season stint at Hope Arena

Catch the Chilliwack Chiefs on the ice as they prepare for fresh season

Stellar Haze offers up ‘organic rock’ at Memorial Park

Trio hitting the stage for their first live performance this Friday

Kent quarry opposition receives federal support

Green Party leader Elizabeth May wrote to the provincial government to oppose the quarry application

Agassiz United Church to host 37th annual garage sale

The annual sale will take place on Saturday, Sept. 7

Sts’ailes invites adults to become engaged in Halq’eméylem with new video series

‘Qw’oqwel te Qw’oqwel’ gives language learners an immersive way to learn Halq’eméylem

Conan turns to the Property Brothers for tips on buying Greenland

Jonathan Scott suggests removing glaciers and mountains to bring in ‘more natural light’

Forests minister visits B.C. town rocked by multiple mill shutdowns

A third of Mackenzie turns out for rally, not much to cheer about

B.C. sockeye returns drop as official calls 2019 ‘extremely challenging’

Federal government says officials are seeing the same thing off Alaska and Washington state

North Van music teacher accused of sexual misconduct involving girls

Police believe other victims could be out there after the arrest of Lamar Victor Alviar

B.C. family stranded in Croatia desperate to come home

Funds being raised to bring back mom and two children

B.C. man on trial for daughters’ murders says an intruder broke in

Andrew Berry takes stand in his defense for December 2017 deaths of young daughters

‘Plenty of time for a deal’: Teachers’ union expects kids back in school on Sept. 3

BCTF says class size, composition at the heart of the issue

Most Read