Latest B.C. Provincial Budget Tax Updates for 2024
The B.C. government announced recent changes to the B.C. tax laws, introducing a series of tax updates that will impact individuals and businesses across the province. Whether you’re a homeowner, a small business owner, or an investor, these changes are crucial to understanding how they may affect your financial planning and obligations. From adjustments in property taxes to increases in climate tax credits, the latest budget aims to address the evolving economic landscape. Here are the key B.C. tax updates and what they mean for you.
B.C. Family Benefit Bonus
Starting from July 1, 2024, and continuing until June 2025, eligible families in British Columbia will receive a temporary B.C. Family Benefit Bonus with their monthly payments. This benefit increases the annual amounts and income thresholds by 25%, providing additional financial support to qualifying families.
Climate Action Tax Credit
From July 2024, the B.C. government has increased the amounts for the Climate Action Tax Credit. For July 2024, October 2024, January 2025 and April 2025 payments, the maximum annual amounts increase to:
- $504 for an adult
- $252 for a spouse or common-law partner
- $126 per child
The threshold amounts increase to:
- $41,071 for individuals
- $57,288 for families
The credit aims to help low- to moderate-income families offset the impact of carbon taxes.
Home Flipping Tax
Effective January 1, 2025, a new home flipping tax will be introduced. This tax applies to the sale of residential properties held for less than two years, with a tax rate starting at 20% for properties sold within 365 days of purchase. The rate gradually decreases to zero for properties held between 366 and 730 days. This measure targets speculative real estate transactions to stabilize the housing market.
Property Transfer Tax Exemption for Purpose-Built Rentals
Beginning January 1, 2025, certain new purpose-built rental buildings will be exempt from the general property transfer tax. This exemption applies to transactions occurring between January 1, 2025, and December 31, 2030, encouraging the development of more rental housing.
Updates to the Speculation and Vacancy Tax
An amendment to the Speculation and Vacancy Tax Act will shift the responsibility for this tax from the property owner to the registered leaseholder, starting January 2025. This change aims to better align tax responsibility with property usage control.
Employer Health Tax (EHT) Updates
The exemption threshold for the Employer Health Tax has been increased to $1,000,000 effective January 1, 2024. Businesses with payrolls under this threshold are exempt from paying the tax, which could result in significant savings for small to medium-sized enterprises. The tax rate for payrolls between $1,000,000 and $1,500,000 is also adjusted, increasing from 2.925% to 5.85%. This change impacts planning and payroll budgeting for businesses across B.C.
Training Tax Credits
The B.C. government has extended the training tax credit for employers for three more years until the end of 2027. Additionally, the training tax credit for apprentices is extended for one year until the end of 2025.
Have questions? Our Accounting Firm Has Answers
The British Columbia Budget 2024 outlines what B.C. businesses can expect in 2024. If you have any questions or need further information about the tax updates, how they might impact your business, and how you can benefit from these initiatives, our accountants at Cross & Company are here to help. As a local accounting firm in Nanaimo, B.C., we proudly serve Ladysmith, Parksville, Qualicum, Port Alberni, Duncan, and Lake Cowichan.
Want to grow your business? Contact our Nanaimo accountants and bookkeepers today to learn how Cross & Company can support your business.
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