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B.C.'s Economic Plan to Support Families, Workers and Boost Productivity

 

Across British Columbia, people and communities are feeling the effects of the global economic slowdown. Your government is taking steps to help you and your family deal with the personal economic impacts.

These measures include accelerated tax reductions, support for low-income earners, and new protection for people’s savings. Many of these benefits will flow to you directly.

More Information:

New Help for Homeowners
Across British Columbia, people and communities are feeling the effects of the global economic slowdown. Your government is taking steps to help you and your family deal with the personal economic impacts.
These measures include accelerated tax reductions, support for low-income earners, and new protection for people’s savings. Many of these benefits will flow to you directly.

More Information: 

New Help for Homeowners

Your government is introducing new measures to create certainty for homeowners and provide financial relief during these challenging economic times:

Temporary Tax Deferment
New legislation allows homeowners who are experiencing financial difficulties as a result of the current economic conditions and have at least 15 per cent equity in their home to defer their property tax payments for each of the next two years, with simple interest applied at the prime rate. The deferred taxes do not have to be repaid until the home is sold, but can be paid back earlier if desired.
This builds on B.C.'s existing property tax-deferral program for homeowners 55 and over. Click for information on how to apply.

Lowest Income Taxes in Canada
As a result of tax cuts made since 2001, an additional 325,000 low-income British Columbians now pay no provincial income tax. Individuals pay the lowest income taxes in Canada at all income levels up to $118,000 and most have seen a decrease of between 37 and 70 per cent since 2001. Including measures introduced in the September Budget Update 2009:

  • An individual earning $15,000 now pays $403 less in taxes;
  • An individual earning $20,000 now pays $691 less in taxes;
  • An individual earning $40,000 now pays $1,049 less in taxes;
  • An individual earning $50,000 now pays $1,457 less in taxes;
  • An individual earning $60,000 now pays $1,877 less in taxes;
  • An individual earning $70,000 now pays $2,297 less in taxes.

Support for Low-Income Families
The B.C. Low Income Climate Action Tax Credit is providing up to $105 per adult, and $31.50 per child to low-income B.C. families. This tax credit is funded by the new carbon tax on pollution and is issued quarterly along with the federal GST credit rebate. Click for more information.

Rental Assistance
B.C.’s new Rental Assistance Program provides up to $765 per month towards rent payments for families with a household income of $35,000 or less and at least one dependent child. Click for more information and to apply or call 1-800 257-7756.

 

A New Pension
Your government is spearheading development of a privately financed, defined contribution pension plan that will be available to employers, employees and self employed people.

More Options for Seniors
Federal regulations currently require people to convert and draw down their Registered Retirement Savings Plans (RRSPs) to Registered Retirement Income Funds (RIFs) at age 71. To give seniors more flexibility, the Province has asked the federal government to change these rules. This would give seniors more choice on when to draw down their RRSPs, provide more time for their RRSP value to return; and allow them to continue making tax-deductible contributions to their RRSPs.

Security for Your Savings
New legislation will protect bank-held RRSPs from creditors. Currently, only RRSPs through insurance companies are protected. Your government is protecting the hard-earned investments of British Columbians no matter where their RRSPs are held. It is also making changes to provide unlimited insurance for deposits to credit unions so people know those deposits are protected.

Rental Assistance for Seniors
Through the Shelter Aid for Elderly Renters (SAFER) program, your government provides an average of $150 per month towards rent payments for low income seniors.

For information on how to apply, call 1-800-257-7756 or visit bchousing.org.

 

Small Business Tax Relief
In response to global economic challenges, the small business corporate income tax rate was reduced to 2.5 per cent from 4.5 per cent in 2008. This 44 per cent reduction will inject an additional $401 million into B.C. small businesses over three years. The Province intends to reduce the small business corporate income tax rate to zero by 2012.

Corporate Income Tax Relief
Corporate income tax rates were reduced to 10.5 per cent from 11 per cent on Jan. 1, 2010, and will be reduced to 10 per cent by 2011, giving B.C. the lowest corporate income tax rate in Canada.

PST and HRT Commission Increase
Your government is doubling the commission paid to businesses for collecting the PST and the hotel room tax. That will add up to $1,200 to a business’s annual bottom line.

Industry Tax Rebate
50 per cent of all school property taxes will be rebated to light and heavy industry annually. That will return approximately $50 million annually to our oldest and largest employers to help them reinvest and maintain jobs – especially in rural communities.

 

Your government is accelerating public investment in capital infrastructure projects to keep people employed in our construction sector and keep goods and people moving. Since October 2008, more than 700 projects throughout B.C. totalling $4.4 billion have been announced.

Projects include upgrades to the Highway 97 Cariboo Connector, sections of the Trans-Canada Highway including the Kicking Horse Pass, Highway 3, Highway 16, and Highway 14.
Economic Plan Supports Families and Boosts Productivity Support for Families Suuport for Seniors Support for Taxpayers Support for Business Support for Workers