by Ray Hayes
In 2017, the Canadian economy saw a 3.1 percent growth with the labor market adding 343,000 jobs, the majority of which being full-time positions. Reports from Business Development Bank of Canada indicate that the economy should have a growth of 2.2 percent in 2018. Although this may seem like a bit of a slump, it is still considered solid growth for the country. Due to its solid growth metrics, the Canadian government recently released its 2018 budget with The Global and Mail reporting key findings for small business owners.
Here are important items from this year’s budget:
- Companies earning more than $50,000 a year in passive income will have less of their business income eligible for the small-business tax rate, which will be 9 per cent as of next year.
- The government is committing a $4-billion investment in Canada’s overall research system, giving Canadian scientists and researchers access to cutting-edge tools, technology, and facilities.
- In addition, $2.6-billion will be allocated to incremental support over five years
- The Business Development Bank of Canada (BDC) is releasing $1.4-billion in new financing available to women-led businesses over the next three years
- Exporting will receive a boost as well with $250-million being released over the next three years for export financing and insurance to women-owned and women-led companies.
- Intellectual-property strategy will also receive $85.3-million over five years