BC Finance Minister Carole James delivered the province’s 2019 budget update on February 19, 2019. The budget anticipates a surplus of $274 million for the current year, $287 million for 2020 and $585 million in 2021.
The biggest announcements are:
BC Child Opportunity Benefit
The BC Child Opportunity Benefit covers all children under 18 and can be applied for starting in October 2020. (This replaces the Early Childhood Tax Benefit where the benefit ended once a child turned six.)
Starting October 2020, families will receive a refundable tax credit per year up to:
Families with one child earning $97,500 or more and families with two children earning $114,500 or more will receive nothing.
Interest Free Student Loans
The provincial portion of student loans will now be interest-free effective as of February 19, 2019. The announcement covers both current and existing student loans.
Medical Services Premium
As previously announced in the last budget, effective January 1, 2020, the Medical Services Premium (MSP) will be eliminated. In last year’s budget update, MSP was reduced by 50% effective January 1, 2018.
Public Education System
The public education system will receive $550 million in additional support.
Pharmacare program will be expanded with an additional $42 million to cover more drugs, including those for diabetes, asthma and hypertension.
To learn how these changes will affect you, please don’t hesitate to contact us.
Did you know?
How adequate is your safety net?
Segregated Funds and Mutual Funds often have many of the same benefits such as:
So what’s the difference? Who offers these products?
Why is this important?
What are these features?
Maturity and Death Benefit Guarantees mean the insurance company must guarantee at least 75% of the premium paid into the contract for at least 10 years upon maturity or your death.
Resets means you have the ability to reset the maturity and death benefit guarantee at a higher market value of the investment.
Bypass Probate: since you name a beneficiary to receive the proceeds on your death, the proceeds are paid directly to your beneficiary which means it bypasses your estate and can avoid probate fees.
Potential Creditor Protection is available when you name a beneficiary within the family class, there are certain restrictions associated with this.
What are the fees?
We can help you decide what makes sense for your financial situation.