On April 21, 2015, the conservative government released their proposed 2015 federal budget. � e budget projects a $1.4 billion surplus for the year. � e following are a few highlights as it pertains to employers with regards to bene� ts and retirement savings programs.

Increase in Annual Tax-Free Savings Account (TFSA) Contribution Limits� e annual contribution limit for Tax Free Savings Accounts (TFSAs) is being increased from $5,500 to $10,000, starting in 2015.

Reduction of Registered Retirement Income Funds (RRIF) Withdrawal Minimums � e budget proposes to reduce the minimum required withdrawal rates on Registered Retirement Income Funds (RRISs) that apply to those age 71 to 94, to better re� ect more recent long-term rates of return and expected in� ation. For example, the current minimum withdrawal rate of 7.38% at age 71 would drop to 5.28%.

Home Accessibility Tax Credit A proposed new Home Accessibility Tax Credit (HATC) will help seniors and people with disabilities make changes to improve the safety, access and functionality of their homes, by providing them with a 15% non-refundable income tax credit on up to $10,000 of eligible home renovation expenditures per year. Examples of eligible expenditures include costs associated with the purchase and installation of wheelchair ramps, walk-in bathtubs, wheel-in showers and grab bars.

Extension of Compassionate Care Bene� ts Current Employment Insurance Compassionate Care Bene� ts provide six weeks of employment insurance bene� ts to take leave from work to care for a dying family member. � e budget proposes to extend this leave to six months, as of January 2016.

Improved Bene� ts for Veterans• Four measures provide additional support for disabled veterans:• A new Retirement Income Security Bene� t provides additional � nancial

security for disabled veterans over age 65.

2015 Canada Federal Budget Proposal Key Points

• � e Permanent Impairment Allowance will be expanded to help compensate disabled veterans for the loss of career opportunities associated with their disabilities.

• � e Earnings Loss Bene� t will be modi� ed to ensure that part-time veterans have access to the same level of income support as regular and full-time veterans.

• A new, tax-free Family Caregiver Relief Bene� t will be created for the caregivers of veterans.

Tax Cuts for Small Businesses � e budget proposes to cut the small business federal tax rate by 0.5% each year, from 11% in 2015 to 9% by 2019. � is rate applies to the � rst $500,000 of active business income. � e actual rate a business pays will vary depending on its province of residence, because the provinces also tax business income.

Lowering the EI Premium Rate in 2017 � e Government’s actions to date include freezing the EI premium rate for employees at the 2013 level of $1.88 per $100 of insurable earnings until 2016. � e Government also introduced the Small Business Job Credit in 2014 to lower small businesses’ EI premiums from the current legislated rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016. Any � rm that pays employer premiums equal to or less than $15,000 in those years will be eligible for the credit.

In 2017, the Government will implement the seven-year break-even EI premium rate-setting mechanism, which will ensure that EI premiums are no higher than needed to pay for the EI program over time. Any cumulative surplus recorded in the EI Operating Account will be returned to employers and employees through lower EI premium rates once the new mechanism takes e� ect.

� is is expected to result in a substantial reduction in the EI premium rate, from $1.88 in 2016 to an estimated $1.49 in 2017, a reduction of 21 per cent.

For more information visit: http://www.budget.gc.ca/2015/home-accueil-eng.html

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