The Finance Minister delivered the Government’s 2015 pre-election federal budget on 21^st April 2015. The tax highlights in the 2015 budget are given below:

• From the beginning of 2015, the limit for annual contributions to a tax-free savings account (TFSA) increases from $5,500 to $10,000.
• The age credit amount is to increase by $2000 and the age for savings maturity under Registered Pension Plans and Registered Retirement Savings Plans will rise from 69 to 71.
• More flexibility will be permitted on the annual registered retirement income fund (RRIF) withdrawal limits.
• The small business tax rate will be dropped gradually from 11% to 9% in 2019. The rate will be 10.5% effective from 1^st January 2016, 10% from 1^st January 2017, 9.5% from 1^st January 2018 and 9% from 1^st January 2019. The main corporate tax rate remains 15%.
• Manufacturers will receive a 10 year tax incentive to boost productivity and there will be an extension of the 50% capital cost allowance (CCA) rate for manufacturing and processing machinery and equipment.
• There will be a $1 million lifetime capital gains exemption for owners of farm and fishing businesses.
• There will be relief from withholding tax when non-resident employers refer their employees to work in Canada for short duration.
• New measures will update the discussion process of a new system for qualified capital property (still pending) and sessions on the OECD’s base erosion and profit shifting initiative (BEPS).
• The government will decrease the minimum withdrawal factors for Registered Retirement Income Funds to permit seniors to preserve more of their retirement savings to better support their retirement income needs.
• Extending sympathetic care benefits under the employment insurance system from 6 weeks to 6 months for Canadians caring for gravely ill family members.