Canada to Welcome Host of Policy Changes from 2023
Canada will be welcoming some changes in policy next year. Some changes are improvements to previously implemented regulations while others are new additions to the system. While some of the changes will impact all of Canada, others are more province-specific.
Some of the changes in policy coming into effect in 2023 are:
Higher payroll deductions
Canadian workers will get less take-home pay as contributions to Canada Pension Plan (CPP) and employment insurance (EI) premiums are increasing. The Canada Revenue Agency announced in November that CPP contribution rates will go up to 5.95 percent from 5.70 percent in 2022. As for employment insurance premiums, they can go up to $1,002.45 in 2023, compared to $952.74 in 2022.
Foreign homebuyer ban
Foreign commercial enterprises and people will be banned from purchasing residential property for two years starting January 1, 2023. This ban was put in place to combat the housing shortages and affordability issues. Notably, temporary work permit holders, international students who meet certain criteria, and refugee claimants will be exempt from this rule.
Carbon price increase
From April 1, 2023, carbon pricing is said to increase from $50 per tonne to $65 per tonne which means the current 11.05 cents per liter carbon price of gas will increase to 14.31 cents per liter. From July 1, clean fuel regulations will come into action and further increase gas prices.
TFSA limit increase
For the first time since 2019, the maximum amount that can be put in your Tax-Free Savings Account (TFSA) for 2023 has been increased to $6,500.