Canada Budget 2007

Highlights from the 2007 Federal Budget for Canada

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Changes for individual taxpayers

* The government will introduce a $2,000 child tax credit to provide up to $310 per child of tax relief depending on family income.
* Tax credits for low-income spouses and dependents of single individuals will rise to $8,929 from $7,581. The government estimates the move will provide up to $209 of tax relief for a supporting spouse or single taxpayer who is supporting a child or relative.
* The public transit tax credit will be extended to electronic fare cards and weekly passes, when used on an ongoing basis.
* Meal expenses that long-haul truck drivers can deduct for tax purposes increase from 50 to 80 per cent.
* Charitable donations of publicly listed securities to private foundations will be free from capital gains tax.

Changes for business taxpayers

* The lifetime capital gains exemption for farmers, fishermen and small business owners will rise to $750,000 from $500,000.
* Tax reductions will lower Canada's tax rate on new business investment to encourage investment and job creation.
* Manufacturing and processing businesses will be allowed to write off their capital investments in machinery and equipment acquired on or after March 19, 2007, and before 2009 using a special two-year, 50-per-cent straight-line rate.
* The capital cost allowance rate will rise to 10 per cent from four for buildings used in manufacturing and processing, and to 55 per cent from 45 for computers.
* The government will crack down on corporations that use tax havens to avoid paying taxes by eliminating the deductibility of interest incurred to invest in business operations abroad, improving information agreements with other countries and providing more resources to the Canada Revenue Agency to strengthen their audit and enforcement activities.
* The 15-per-cent, mineral exploration tax credit will be extended an additional year, until March 31, 2008.

Changes for travellers

* The federal government will develop a Foreign Convention and Tour Incentive Program to attract foreign conventions through a goods and services tax/harmonized sales tax system with the provinces.
* The value of goods that may be imported duty- and tax-free by returning Canadian residents after a 48-hour absence will rise to $400 from $200.

Changes for seniors

* $10 million a year will go to the New Horizons for Seniors program to combat elder abuse and fraud and to expand capital assistance for community buildings, equipment and furnishings.
* The age credit amount will be increased by $1,000 to $5,066 for anyone over 65.
* Pension income splitting will be introduced.
* The age limit for converting a registered retirement savings plan (RRSP) will increase to 71 from 69 for those Canadians who wish to continue working longer.
* The list of qualified investments that can be held by RRSPs and other registered plans will be amended to include most investment-grade debt and publicly listed securities.

Changes for the disabled

* A new Registered Disability Savings Plan will be established to help parents and others save toward the long-term financial security of people with severe disabilities.
* An Enabling Accessibility Fund will be established with $45 million over three years to contribute to the cost of improving physical accessibility for people with disabilities.

Changes for the unemployed

* As promised, the government will introduce a Working Income Tax Benefit of up to $500 for individuals and $1,000 for families on welfare to provide incentives to work.
* The government is setting aside $500 million a year, starting in 2008-09, to provide labour market training for those who are not eligible for employment insurance training.

Changes for women

* Status of Women Canada will receive $10 million a year for programs such as combating violence against women and girls.

Changes for aboriginals

* The Aboriginal Skills and Employment Partnership will receive an additional $105 million over five years.

Changes for skilled foreign workers

* The government will invest $51 million over two years in the Temporary Foreign Worker Program.
* The government will provide $34 million over the next two years to help Canadian-educated foreign students and skilled foreign workers stay in Canada as permanent residents.
* A Foreign Credential Referral Office will be created, with a $13-million investment over two years.

Changes for farmers

* The government will provide an immediate one-time payment of $400 million to help farmers address the rising costs of production.
* The government plans to introduce a simpler income stabilization program for farmers with a new savings account program to be cost-shared on a 60:40 basis with provinces and territories. A one-time payment of $600 million will help build new accounts.

Changes for students

* The Canada Graduate Scholarships will receive $35 million over two years and $27 million a year thereafter to support an additional 1,000 students.
* The $4,000 limit on contributions to annual registered education savings plans (RESPs) will be eliminated and the lifetime contribution limit will rise to $50,000 from $42,000.
* The maximum Canada Education Savings Grant annual amount will increase to $500 from $400.

Changes for research

* The Canada Foundation for Innovation will receive $510 million to undertake another major competition before 2010 to support the modernization of research infrastructure at Canadian universities, colleges, research hospitals and other non-profit research institutions.
* CANARIE Inc., a not-for-profit corporation that manages CA*net, will get $120 million in 2006-07 for its research broadband network that links Canadian universities, research hospitals as well as other science facilities in other countries.
* The Canadian Institute for Advanced Research will get $10 million over the next two years to help students and researchers involved in groundbreaking research on the international stage.
* The government will provide $6 million in 2008-'09 to help relocate Natural Resources Canada's CANMET Materials Technology Laboratory to the McMaster Innovation Park in Hamilton, Ont.
* The government will spend $85 million a year through the federal granting councils for research targeted on health sciences, energy, the environment, information and communications technologies and management, business and finance.
* Centres of Excellence in Commercialization and Research will receive $350 million in 2006-'07 and the following two years.
* Genome Canada will receive an additional $100 million in 2006-07 to extend research projects and fund regional centres.

Changes for the environment

* A performance-based rebate program will offer up to $2,000 for the purchase of a new fuel-efficient or efficient alternative-fuel vehicle.
* A new green levy on "gas guzzlers," will replace the excise tax on heavy vehicles. It will be based on fuel efficiency ratings, and will be paid by the manufacturer on vehicles delivered after March 19. The levy starts at $1,000.
* An extra $36 million over the next two years will be set aside to help get older polluting vehicles off the road.
* About $1.5 billion will be allocated over seven years to replace excise tax exemptions for ethanol and biodiesel and encourage production of renewable fuels.
* More than 100 more environmental enforcement officers will be hired, doubling the number of officers.
* The government plans to invest $110 million over two years to better implement the Species at Risk Act.
* The government will provide $10 million over two years to create or expand protected areas in the Northwest Territories.
* Under a national water policy, the government will spend:
* $11 million over two years to help clean up of contaminated sediments in eight areas of the Great Lakes Basin identified under the Canada-U.S. Great Lakes Water Quality Agreement.
* $5 million over two years for the International Joint Commission to carry out a study with the U.S. on the flow of water out of Lake Superior.
* $12 million over two years to support the cleanup of Lake Simcoe.
* $7 million over two years to support the cleanup of Lake Winnipeg.
* The Canadian Coast Guard will get $324 million for six new vessels - four mid-shore patrol vessels and two offshore fishery science vessels.
* The tax system will be rebalanced to encourage investments by the oilsands and other sectors in clean and renewable energy while the current accelerated capital cost allowance for oilsands development is phased out over the next eight years.

Changes for the arts

* Ottawa will provide $30 million a year in support for local arts and heritage festivals.
* $5 million a year will be set aside to hire qualified summer interns to work in Canadian museums.
* A new Canadian Heritage Sport Fund will be given an investment of $1.5 million to encourage youth participation in Canadian heritage sports like Canadian three-down football and lacrosse.
* $30 million will be set aside over the next two years to expand funding for official languages minority communities.
* $52 million will be set aside for the 2008 Francophonie Summit in Quebec City.
* Ottawa will create Canada's National Trust, based on the National Trust in the United Kingdom. It will operate independent of government and encourage Canadians to protect important lands, buildings and national treasures.

Changes for health care

* The government will spend an additional $400 million for Canada Health Infoway to support the elimination of patient wait times.
* The government will provide up to $612 million to those provinces that have made commitments to implement patient wait-times guarantees as well as $30 million over three years for pilot projects.
* The government will spend $300 million for a vaccine program to protect women and girls against cancer of the cervix.
* A Canadian Mental Health Commission will be established, starting in 2009-10. This commission will lead the development of a national mental health strategy.
* An additional $22 million a year will be provided to the Canadian Institute for Health Information.

Changes for the provinces

* Eligible provinces and territories will receive $2.1 billion more in the next two years under Equalization and Territorial Formula Financing programs.
* Annual support for post-secondary education will increase by $800 million, for a total annual transfer of $3.2 billion by 2008-09.
* The government will provide $250 million a year starting in 2007-08 for new child-care spaces.
* Provinces will get new and long-term funding of $500 million a year, starting in 2008-09, for job training.
* The government will provide an additional $800 million a year, beginning in 2008-09 to strengthen the post-secondary education system. Federal support will grow by three per cent every year thereafter.

Changes for municipalities

* The government will transfer $2 billion a year to municipalities from 2010-11 to 2013-14 by extending the Gas Tax Fund - for a total of $8 billion. This money will be used for municipal priorities including roads, public transportation and water.
* The government will provide $6 billion in new funding to the new Building Canada Fund, which will invest in gateways and border crossings and public-private partnerships. The government will also establish a new federal office to identify and implement opportunities for public-private partnerships in infrastructure.

Changes for the armed forces

* The government will earmark $60 million a year to bring the environmental allowances paid to soldiers serving in army field units in line with those paid to their counterparts in the navy and air force.
* Five new Operational Stress Injury Clinics will be established, at a cost of $10 million a year, to help Canadian Forces members, as well as veterans and their families.
* The government will spend $19 million in 2007-08 and $20 million thereafter to establish a veterans ombudsman.

Changes for law enforcement

* A new National Anti-Drug Strategy will be set up, with $64 million over two years, to crack down on gangs, grow-ops and methamphetamine labs, and to help treat and prevent drug dependency.
* The RCMP will get an additional $6 million a year to protect children from sexual exploitation and trafficking.
* A senior expert adviser to the RCMP will be appointed to help crack down on white-collar crime.
* The government will spend $14 million over two years to improve screening of first-time firearms licence applicants.
* The Correctional Service of Canada will receive $102 million over two years to update infrastructure, equipment and programming, pending the results of a panel review.
* The Canadian arm of the International Association of Fire Fighters will receive $1 million over two years to help implement a hazardous materials training program.[/align]

Oh and Dion is full of shit.

This is nothing more than a budget designed to buy Bloc support. It pays off Quebec and doesn't do much for taxpayers. The government is spending a fortune on stupid programs.

Well it is good that the government is spending less on enviroment then was suspected.

They still have enough left for a budget?

I thought Harper gave everything away in the last three weeks or so.

"A new Registered Disability Savings Plan will be established to help parents and others save toward the long-term financial security of people with severe disabilities."

Thats jsut stupid

Looks like an election is near!

CBC is reporting that the Liberals, NDP and Bloc will NOT support this budget.

This budget tells us a lot about the conservatives.

I don't think it is the worst budget. It seems to deliver in many different areas and probabaly there is something in it for everyone. I was expecting more tax cuts but seems more to be about more spending. In some sense it is more like a liberal budget really.

Anyway the Bloc looks like they will support it and and use whatever money they get to help keep pushing for their own country and hoping the PLQ doesn't win.

I love that they did almost nothing for the average university student

The NDP is opposing the budget. Surprise, surprise.

But how the Liberals will oppose this budget is beyond me -- despite the fact that Stephan Dion said he would months before he ever saw it. Stephan Dion is preDIONictable.