{"id":1474,"date":"2026-11-13T21:03:09","date_gmt":"2026-11-13T21:03:09","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/?p=1474"},"modified":"2026-11-13T21:03:09","modified_gmt":"2026-11-13T21:03:09","slug":"all-about-the-new-proposed-budget","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/2026\/11\/13\/all-about-the-new-proposed-budget\/","title":{"rendered":"All About the New Proposed Budget"},"content":{"rendered":"<p>It feels like we were just talking about summer, and now we&#8217;re already approaching the final stretch of the year. Alongside the usual year-end planning conversations, the federal government recently unveiled its latest budget, and while many of the proposals still need to work their way through the legislative process, several caught our attention from an investor&#8217;s perspective.<\/p>\n<p>Whether it&#8217;s making retirement savings more flexible through the proposed Registered Retirement Savings Plan (RRSP) for life changes, reducing tax reporting requirements for some Canadians with foreign investments, or creating new incentives to invest in Canadian businesses, there are a number of ideas that could influence financial planning decisions in the years ahead. I\u2019ve summarized the key proposals below and what they may mean for investors.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Proposed RRSP for life<\/strong><\/p>\n<p>A significant proposal from the budget for advisors and investors included the <strong>RRSP for life<\/strong>, meaning Canadians would <strong>no longer<\/strong> be required to convert an RRSP to a Registered Retirement Income Fund (RRIF) at age 71.<\/p>\n<p>Instead, your RRSP could effectively remain in place for life, and you would begin your minimum withdrawals directly from the RRSP at age 71.<\/p>\n<p>It also explores the beneficiary designation <strong>addition of successor annuitant for spouses<\/strong> (much like RRIF and Tax-Free Savings Accounts already have), rather than the current \u201cspousal beneficiary\u201d, simplifying the tax-free transfer to the spouse after death.<\/p>\n<p>This not only benefits the account holder, but also the financial institutions, as they would no longer be required to coordinate and complete the account opening, and conversion of the RRSP to a RRIF, lowering the administrative burden.<\/p>\n<p>This proposal could arguably be the most complex, as there are many questions to be answered, and many areas of rules that would need to be changed and accommodated, which would take time, but ultimately this could be very beneficial at both the client and advisor level.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Foreign asset reporting relief <\/strong><\/p>\n<p>The budget proposes to <strong>double <\/strong>the threshold for filing Form T1135 (Foreign Income Verification Statement). Currently, Canadian taxpayers must file a T1135 when the total cost amount of specified foreign property exceeds <strong>$100,000<\/strong> at any point during the year. The proposal would increase that threshold to <strong>$200,000<\/strong>.<\/p>\n<p>For example, this proposal may benefit those who hold U.S. stocks or other investment products in a non-registered account, foreign property (rental or secondary home) outside of Canada, foreign bank accounts etc.<\/p>\n<p>Keep in mind, the current and proposed threshold changes are based on cost and not market value, and do not apply to any registered investment vehicle (ex: RRSP, TFSA, RRIF, FHSA, RESP)<\/p>\n<p>&nbsp;<\/p>\n<p><strong>The Canada Growth Incentive<\/strong><\/p>\n<p>While many questions remain to be answered on this proposal, this could be one of the most intriguing investment-related proposals in the budget.<\/p>\n<p>The new Canada Growth Incentive would offer a <strong>capital gains exemption of up to $15 million<\/strong> on qualifying investments in Canadian companies, along with enhanced tax-deferred rollover provisions when proceeds are reinvested into other qualifying Canadian businesses.<\/p>\n<p>This proposal would encourage:<\/p>\n<ul>\n<li>More Canadian capital staying in Canada<\/li>\n<li>Investment in private and growing Canadian businesses<\/li>\n<li>Entrepreneurship<\/li>\n<li>Productivity growth<\/li>\n<li>Business expansion and job creation<\/li>\n<\/ul>\n<p>The objective of the proposal is intended to support Canadian business growth and appears to be a part of the government\u2019s broader strategy to stimulate private-sector investment and economic growth.<\/p>\n<p>Under today&#8217;s rules, if you invested, for example, $500,000 in a qualifying Canadian growth company, and the value when sold grew to $5,000,0000, a significant portion of the $4,500,000 capital gain would be taxable. Under the new incentive, if the investment qualifies and remains within the exemption limits, some or all of that gain could potentially be sheltered from tax. The exact mechanics will depend on the legislation that follows.<\/p>\n<p>An important distinction to note is that this proposal is its own, and <strong>not<\/strong> a blanket increase to the capital gains inclusion rate or a general capital gains exemption already in place.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Tax deadlines <\/strong><\/p>\n<p>Beginning in 2028, for the 2027 tax year filing, the budget proposes shifting the personal filing and payment deadline for individuals, including those who are self-employed and their spouses or partners from the current <strong>April 30 to May 15.<\/strong><\/p>\n<p>While two weeks may not seem long, we\u2019ve all felt the time crunch of needing to compile everything needed and file prior to the deadline, making that extra time beneficial and helpful.<\/p>\n<p>Since this is still a proposal, and not yet law, please ensure you are following current tax deadlines and consult with your tax professional if you have any questions.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Tax installments <\/strong><\/p>\n<p>The budget proposes to increase the tax instalment thresholds from the current <strong>$3,000 to $7,500<\/strong>, meaning fewer Canadians would be required to make quarterly tax payments to the CRA, and most could instead pay the total balance after filing.<\/p>\n<p>For <strong>Quebec <\/strong>residents, the threshold would increase from the current <strong>$1,800 to $4,500.<\/strong><\/p>\n<p>This proposal could benefit:<\/p>\n<ul>\n<li>Retirees drawing RRIF income.<\/li>\n<li>Clients with non-registered investment accounts generating interest, dividends, and capital gains.<\/li>\n<li>Business owners paying themselves dividends from corporations.<\/li>\n<li>Clients realizing one-time capital gains from property or investment sales.<\/li>\n<\/ul>\n<p>And while this proposal isn\u2019t a tax-saving measure in terms of reducing taxes owed, it may be a quality-of-life changer, allowing more Canadian taxpayers to keep their would be tax funds longer, and deal with the CRA less often.<\/p>\n<p>&nbsp;<\/p>\n<p>While many of these proposals are still subject to further review and approval, they highlight some meaningful potential changes for investors, retirees, and business owners. From simplifying tax reporting and reducing CRA instalment requirements to creating new retirement and investment planning opportunities, there is plenty to keep an eye on in the months ahead!<\/p>\n<p>As always, I&#8217;ll continue to monitor developments closely and keep you informed of any changes! If you have questions about how any of these proposals may apply to your individual situation, please reach out to your financial professional, we\u2019re always here to help!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It feels like we were just talking about summer, and now we&#8217;re already approaching the final stretch of the year. Alongside the usual year-end planning conversations, the federal government recently unveiled its latest budget, and while many of the proposals still need to work their way through the legislative process, several caught our attention from [&hellip;]<\/p>\n","protected":false},"author":116,"featured_media":1475,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/users\/116"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/comments?post=1474"}],"version-history":[{"count":1,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1474\/revisions"}],"predecessor-version":[{"id":1476,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1474\/revisions\/1476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/media\/1475"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/media?parent=1474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/categories?post=1474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/tags?post=1474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}