Saskatchewan 2022 Budget Highlights

On March 23, 2022, the Saskatchewan Minister of Finance announced Saskatchewan’s 2022 budget. This article highlights the most important things you need to know.

Credit: https://www.saskatchewan.ca/government/budget-planning-and-reporting/budget-2022-23/budget-documents

No Changes To Corporate or Personal Tax Rates

There are no changes to Saskatchewan’s corporate tax rates or personal tax rates in Budget 2022.

Increased Value-Add Agriculture Incentive Tax Credit

Budget 2022 increases the tax credit rate for the Saskatchewan Value-added Agriculture Incentive up to 40%, depending on the amount being invested. This credit is only available for capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan, such as canola crush facilities and pea protein processors.

Increased Technology Start-Up Incentive Tax Credit

This initiative offers a non-refundable 45% tax credit to anyone investing in eligible start-up businesses that are either developing new technologies or applying existing technology in a new way. Budget 2022 increases the annual cap of the Saskatchewan Technology Start-up Incentive tax credit to $3.5 million per year.

Changes in Education Property Taxes

Budget 2022 increases the mill rates (amount of tax payable per dollar of a property’s assessed value). The new education property tax rates are as follows:

Agricultural — 1.42 (from 1.36)
Residential — 4.54 (from 4.46)
Commercial/Industrial — 6.86 (from 6.75)
Resource — 9.88 (from 9.79)

Changes In PST Charges

Budget 2022 includes two PST changes. Audiobooks will be exempt from PST sales as of April 1, 2022. As of October 1, 2022, PST will be charged by various places that charge admission, including sporting events, concerts, museums, and fairs. It will also be applied to gym memberships and golf memberships.

Improvements In Child Care Options

Budget 2022 commits over 300 million dollars to improve child care options. The money is committed as follows:

$309.6 million for early learning and child care. This includes funding provided via the Federal-Provincial Early Years Agreements.
$4.3 million to create 6,100 new child care spaces.

Helping The Healthcare System Thrive

Budget 2022 also commits a record 6.8 billion to help the healthcare system thrive. The money is committed in a variety of areas, including:

$21.6 million to reduce the surgical waitlist.
$12.5 million for 11 additional ICU beds. The government’s goal is to bring the total of ICU beds in the province to 90 by 2022-23, increasing to 110 by 2024-25.
$470 million for mental health and addictions services programs.

We can help!

We can help you determine the effect of tax changes in this year’s budget on your personal or business finances. Get started today and give us a call!

Permanent versus Term Life Insurance – What are the Differences?

You know you need life insurance – but you’re not sure which kind is best for you. We can help you with that decision.

There are two main kinds of life insurance:

Permanent, which lasts for your entire life.

Term, which is only good for a set amount of time.

No matter which type of life insurance you buy – permanent or term – you can rest easy knowing you’ve provided financial protection for your family.

Permanent life insurance

Permanent life insurance is good for your entire life unless you choose to cancel it. It’s an excellent choice to give you peace of mind that you’ll always be covered, even if you develop major health issues later in life.

There are also benefits to having permanent life insurance beyond guaranteed lifelong coverage:

You can use the policy to build up a cash value – making it a good choice for low-risk investing.

You may be able to use your permanent life insurance policy as collateral for a loan, making it a good choice for business owners.

The main drawback to permanent life insurance policies is that the premiums are often more expensive than term life insurance premiums. If, however, you’re thinking long-term and can afford the premiums, permanent life insurance is a great way to ensure you’re always protected and can have some guaranteed money for your estate.

Term life insurance

Term life insurance is either valid for a set amount of time (such as five or ten years) or until you reach a set age – for example, 60. You should generally be able to renew your life insurance at the end of each term, but your premiums may go up.

Term life insurance premiums are cheaper than permanent life insurance premiums – at least, you are younger and healthier (as the risk of you dying is lower). Your premiums will increase as you age or develop health issues.

You can’t use term life insurance as collateral for a loan or use the policy to build up a cash value. There are lots of benefits to term life insurance, though – it’s a good choice for you if you want low premiums, easy-to-understand insurance, and only need it for a set amount of time – such as while you have a mortgage or young children.

We can help you decide between permanent and term life insurance

If you’re not sure what kind of life insurance is best for you, we can help. We’re happy to talk to you to get more information about your insurance needs. We can then discuss what each type of insurance will cost you and which type of insurance we feel is best for you.

Give us a call today!