The 2015 Federal Budget: Notable Highlights for Dentistry
On April 22nd, the federal government announced their budget. Here are the notable highlights for dentistry.
Small Business Tax Rates: Budget 2015 proposes to reduce the small business tax rate by 2 percentage points, to 9 per cent by 2019.
The small business tax rate will be reduced by an incremental 0.5% per year over four years, starting as of January 2016 subject to the Budget receiving Parliamentary approval.
This reduction in the small business tax rate is good news, in that it will apply to dental practices which are incorporated (Canadian controlled private corporations or CCPCs, as fitting the definition of the Canada Revenue Agency) with less than $15 million in taxable capital. The reduced rate applies to the first $500,000 of active income.
This reduction of the Federal small business tax rate does not affect the similar provincial rates. It does not apply to income earned through a corporations from investments.
Support for Research: Budget 2015 includes $15 million per year in funding to the Canadian Institutes of Health Research. $2 million of this per year will support additional research to better understand and address the health challenges posed by anti-microbial resistant infections.
The other $13 million is for the expansion of the Strategy for Patient-Oriented Research, to advance health care innovation in partnership with provincial governments, research institutions, and the private and not-for-profit sectors, with a view to increasing the effectiveness and efficiency of the health care system.
Budget 2015 also proposed $15 million over five years to continue to support science-based assessments conducted by the Council of Canadian Academies. This includes the Canadian Academy of Health Sciences.
Investing in the Health of Canadians: Budget 2015 indicates that the Federal government will Increase transfers to the provinces for health care by a projected $27 billion over the next five years.
Health Innovation: Providing $14 million over two years for the Canadian Foundation for Healthcare Improvement to help identify efficiencies in the health system.
First Nations Health/NIHB: Investing $2 million per year ongoing for mental wellness teams in First Nations Communities.
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