Federal Budget 2023, what's in it for you?
Key points from Canada’s budget
As announced by Finance Minister Chrystia Freeland, the deficit for the fiscal year ending March 31 grew to $43 billion, exceeding the $36.4 billion forecast in November’s budget update.
New spending is set to target the healthcare system, clean-technology incentives, and inflation relief for low-income Canadians.
Federal debt as a portion of gross domestic product is expected to rise to 43.5% in the fiscal year beginning April 1.
Key points for small business:
Another federal budget has been announced but what’s in it for you as a small business owner? Here are some highlights. It’s always important to consult with a financial professional for more information.
The Canadian Federation of Independent Business states the biggest win for small business owners is the deal reached with Visa and Mastercard to reduce credit card fees.
The CFIB is also pleased to see that there are no projected increases to EI and CPP in the near future.
The Small Business Innovation and Growth Fund have been created to provide funding for small businesses for research and development and to assist in growing operations.
Canada Emergency Business Account (CEBA) has been extended until the end of 2023. Check the website for more information.
The budget includes a hiring credit for small businesses that hire new employees. This credit is available for businesses with less than $20 million in annual revenue. The tax credit is up to $1000 per new employee, up to a maximum of $100,000 per business.
For small businesses involved in the trades, tradespeople will benefit from a $1000 deduction for tool expenses.