2025 will bring numerous changes for Canadian residents, from increasing minimum wages to new mortgage rules. The ambitious goals include fighting inflation, improving housing affordability, and promoting social equity. However, as the saying goes, promises are easier made than kept—let’s see how these changes will work in practice.
Minimum wage increases are coming to most provinces: the federal minimum wage will rise to $17.70 in April, while British Columbia’s will increase to $17.40 in June. This is a step toward supporting workers, but will it be enough to counter the rising cost of living?
Tax changes also promise some relief: income tax brackets will increase by 2.7% to account for inflation, preventing people from being pushed into higher tax brackets due to salary increases. However, a higher capital gains tax (from 50% to 66.7%) will significantly impact businesses and investors.
The Canada Pension Plan (CPP) and Employment Insurance (EI) programs will see updates: maximum contributions are increasing, but future payouts are also expected to grow. EI expansions will allow sick individuals to claim benefits for up to 28 weeks, providing a small buffer for those temporarily unable to work.
Good news for families: Increased payments under the Canada Child Benefit and dental care subsidies for households earning below $90,000 will provide some financial relief.
There are also controversial changes. For instance, new mortgage rules promise to make homebuying easier for first-time buyers, but whether this will help amid skyrocketing housing prices remains uncertain.
Regional updates include a 20% tax on property resales within two years of purchase in British Columbia. Meanwhile, Ontario continues lowering daycare costs as part of its $10-a-day childcare program.
While these measures look promising on paper, their effectiveness in real life remains to be seen. For now, it’s best to stay informed about the changes and consider consulting professionals to make the most of these new opportunities.
Oleksandra Melnykova, Immigration and Refugee Consultant in Canada.
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