Canada’s Conservative Government is working for families

August 06, 2009

In these tough economic times, standing up for families is more important than ever and the Conservative Government is delivering on its commitments to families.

We understand that everyone is stretching to make ends meet. The Government introduced measures that give families a break, long before the global recession hit. Now Canada’s Economic Action Plan is making sure families get the support they need.

We have delivered a child tax credit, the Universal Child Care Benefit and a break for families that enrol their kids in amateur sports.  The marriage penalty in the tax system has been removed.  Registered Education Savings Plans have been strengthened, so families can plan better for the future.

All of these measures have helped put Canada and Canadian families in a strong position to weather the storm, and set the stage for a promising future.

The Government is also helping young families get a head start on buying their first homes, by providing up to $750 in tax relief.  We’re also providing first-time home buyers with more flexibility to buy or build a home.  They can now withdraw up to $25,000 from RRSP savings to do so, an increase from the previous limit of $20,000.

These measures don’t just help first-time homebuyers; they also stimulate our economy by boosting demand for housing, which is a key driver of economic activity in Canada.

The Home Renovation Tax Credit is an important foundation of Canada’s Economic Action Plan.  We are lending a hand to families who want to improve their homes as their most significant investment, and at the same time, giving a boost to trades people and business that produce and sell building materials.

This year, as we fight the global recession, families will be able to claim a credit for eligible renovations worth up to $10,000 and receive up to $1350 in tax relief.  Right across the country, Canadian families are benefitting from this tax relief by improving kitchens and bathrooms, building new decks, laying new carpet or even putting on new roofs.

This activity is putting contractors, carpenters, and all kinds of other trades people to work.  It’s generating local business at everything from hardware stores to lumber yards.  In turn, the entire Canadian economy reaps the benefits.  The Home Renovation Tax Credit; and the other new investments we’re making to stimulate the economy are designed to create and protect jobs during this period.

Finally, the new Tax-Free Savings Account (TFSA) is a flexible, registered general-purpose savings vehicle that allows Canadian families to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA compliments existing registered plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP). Canadian residents age 18 or older can contribute up to $5,000 annually to a TFSA and investment income earned in a TFSA and all withdrawals from a TFSA are tax-free. 

All these measures reflect our belief that by making life a little easier for families, we are building a stronger Canada.