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At Bilyk Financial, our mission is to ensure our clients are equipped with the knowledge they need to navigate changes that could affect their financial well-being. As we examine the intricacies of the 2024 Federal Budget, our aim is to provide you with a comprehensive understanding of its impact on your financial situation.

We echo Moody’s sentiments regarding the recent release of Canada’s Budget 2024. The budget paints a picture of heavy spending accompanied by continued large deficits, absence of a fiscal anchor, and mounting public debt charges, projected at a staggering $54.1 billion for the upcoming year – exceeding $1 billion per week. Moreover, despite the Bank of Canada’s recent warning about Canada’s productivity problem, the budget introduces an increase in the capital gains inclusion rate, a move that may exacerbate challenges and potentially drive investment capital away from Canada while contributing to the departure of successful Canadians.

One of the most significant changes introduced by the 2024 Federal Budget is the alteration to capital gains taxation. For personal accounts, individuals will now include two-thirds of their capital gains in their taxable income, up from the previous half. However, it’s important to note that a $250,000 exemption on capital gains remains in place for individuals, providing some relief from the increased inclusion rate.

In contrast, corporations will also see an increase in the inclusion rate for capital gains, from 50% to 67%, without the benefit of a similar exemption. This change may have significant implications for corporate tax planning and investment decisions.

While these changes may pose challenges, it’s important to note that registered accounts such as RRSPs and TFSAs remain unaffected, offering continued tax-deferred or tax-free growth opportunities.

In addition to taxation, the budget allocates funding to social welfare and public services, potentially impacting individuals and families through improvements in sectors like healthcare, education, and housing.

Moody’s insightful analysis of the budget’s fiscal implications sheds light on the broader economic outlook. By evaluating projected deficits, debt levels, and the sustainability of fiscal policies, we gain valuable insights into the challenges and opportunities that lie ahead.

As trusted financial advisors, we are committed to helping you navigate these changes and make informed decisions aligned with your financial goals. Whether it’s adjusting your investment strategy or optimizing tax planning, we’re here to provide guidance and support every step of the way.

In conclusion, the 2024 Federal Budget represents a significant impact in our nation’s economic landscape. Understanding its implications and staying informed about key developments, we can work together to navigate these changes and build a stronger financial future.

(Source: [Moody’s Private Client – Our Review of the 2024 Federal Budget: An In-Depth Analysis](

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