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Canada’s 2022 Federal Budget and its Implications for Canadians and Physicians

Dr. Kirsten Lindner & Sebastien Chevrier - May 13, 2022
Physicians have experienced increased stress and burnout due to the pandemic. Financial health is an important and often overlooked factor to consider in improving physician well-being.

Canada’s 2022 Federal Budget and its Implications for Canadians and Physicians

Canadian Finance Minister Chrystia Freeland delivered the government’s 2022 federal budget on April 7. As a Physician who likely does not have the time to peruse the budget in its entirety, we thought it may prove helpful to you if we listed and briefly discussed some of its key elements, the majority of which are relevant to Physicians specifically. These are laid out below.

Increasing loan forgiveness for doctors and nurses in rural and remote communities

The government stated that as a means of addressing the shortage of doctors and nurses in many communities, it will provide student loan forgiveness to those who work in underserved rural or remote communities. In addition, the budget proposes $26.2 million over four years to increase the maximum amount of forgivable Canada Student Loans by 50%—meaning up to $30,000 in loan forgiveness for nurses and up to $60,000 in loan forgiveness for doctors working in those communities. 

Addressing surgery and procedure backlogs

The budget includes a $2 billion top-up to the Canada Heath Transfer to address surgery and procedure backlogs. If successful, this should come as welcome news to your patients (and we’re sure you as well).

Research on COVID-19’s long-term effects

$20 million is allocated over five years to support additional research on the long-term effects of COVID-19 infections on Canadians, as well as its impact on health and health care systems.

A new tax break for small business owners

Currently, small businesses enjoy a tax rate of 9% on the first $500,000 of taxable income, while the corporate tax rate is 15%. This beneficial rate is removed once a business’s taxable income surpasses $15 million. The 2022 budget alters the removal of the 9% rate until a business has reached $50 million in income.

While likely not specifically relevant to those running their own practice, it may signify a softening stance towards small businesses from the current government.

Improving supply chains

More than $600 million in funding is being committed to “build more resilient and efficient supply chains,” which have been blamed as a key contributor to the inflation issues that have led to recent interest rate increases. Physicians requiring equipment and materials of all types have not been immune to the supply chain struggles we have seen over the last couple of years.

Dental care assistance

The budget proposes funding of $5.3 billion over five years to Health Canada to provide dental care for low-income Canadians, specifically targeting those earning less than $90,000 per year. While again not directly relevant to Physicians, this does indicate a willingness to help underserved Canadians obtain better access to healthcare.

Increased taxation of the wealthy

The government will be examining a new minimum income tax on the wealthiest Canadians. Short on specifics, the budget stated that details will be released in the 2022 fall economic and fiscal update.

Multigenerational Home Renovation Tax Credit 

A proposal to introduce a Multigenerational Home Renovation Tax Credit, which would provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability, starting in 2023.

Doubling of the First-Time Home Buyers’ Tax Credit and Home Accessibility Tax Credit

The budget proposes to double the First-Time Home Buyers’ Tax Credit amount to $10,000, providing up to $1,500 in direct support to home buyers. Similarly, it proposes doubling the qualifying expense limit for the Home Accessibility Tax Credit to $20,000 to allow seniors and persons with disabilities the opportunity to renovate and upgrade their homes for improved accessibility. This means a tax credit of up to $3,000—an increase from $1,500.

If you would like to discuss any aspects of the budget in further detail or are looking for assistance with your financial plans, we are here to support you. 

Contact us to learn more. 
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