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2018 Federal Budget Summary

PERSONAL INCOME TAX MEASURES

Canada Workers Benefit Enhancement
The budget proposes to rename the Working Income Tax Benefit program to the Canada Workers Benefit. It also proposes that, for 2019, the amount of the benefit be equal to 26 percent of each dollar of earned income in excess of $3,000 to a maximum benefit of $1,355 for single individuals without dependants and $2,335 for families (couples and single parents). The benefit will be reduced by 12 percent of adjusted net income in excess of $12,820 for single individuals without dependants and $17,025 for families.

In appendix are presented two charts showing the proposed enhancement of the Canada Workers Benefit in 2019 for a single individual without dependants and the same for families.

The budget also proposes that the maximum amount of the Canada Workers Benefit disability supplement be increased to $700 in 2019, and the phase-out threshold of the supplement be increased to $24,111 for single individuals without dependants and to $36,483 for families. The reduction rate of the supplement will be decreased to 12 percent to match the proposed rate for the basic benefit, and to 6 percent where both partners in a family are eligible for the supplement.

This measure will apply to the 2019 and subsequent taxation years. Indexation of amounts relating to the Canada Workers Benefit will continue to apply after the 2019 taxation year.

It is important to note that thresholds will be modified for Québec residents.

 

READ MORE  › SLF Federal Budget 2018E

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