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Québec economic update

November 8, 2019
Category :  Articles

On November 7, 2019, the Ministère des Finances du Québec made a statement on Québec's economic and financial situation. The economic update included the following measures:

  • Family Allowance bonus

The Government announces a bonus for the Family Allowance. Indeed, starting 2020, the amount of Family Allowance to which an individual will be entitled will be determined by the number of children, regardless of their rank in the family. Thus, the minimum and maximum amount (determined by the family income) for a minor will be the same for all children, $1,000 and $2,515 respectively. This bonus represents $750 for a family with two children and $1,500 for a family with three children.

  • Abolition of the additional contribution for childcare

The Government is announcing a return to the single reduced rate for subsidized childcare services. Indeed, each family will now pay the same daily rate of $8.25. This measure was announced in the last budget, but it takes effect more quickly than expected with a retroactive effect from January 1, 2019, as soon as the next tax return.

  • Increase of the supplement for handicapped children requiring exceptional care

The Government reiterates its announcement last June for the creation of a second level of assistance to families of children who are seriously ill or have significant limitations who were not eligible for the supplement for handicapped children requiring exceptional care.

  • Changes to the tax deferral measure upon a deemed disposition of an interest in a qualifying public corporation

The tax legislation provides for a deemed disposition of property at fair market value, such as the death of a taxpayer and the arrival of a trust’s 21st birthday. These deemed provisions can sometimes create a liquidity problem since the taxpayer has not really sold his property and still has the tax to pay. A measure already allowed deferral of tax payment (subject to the delivery of a sufficient bond) for a maximum period of 20 years in respect of the deemed dispositions of shares of public corporations having a head office in Québec and fulfilling certain conditions. The Government announces more flexible conditions of access to this measure.

  • Extension of electricity rebate programs

The Quebec government is also announcing the extension of electricity rebate programs to encourage investment in all regions of Québec.

  • Decreased parking fees for healthcare institutions

Starting spring 2020, the first two (2) hours of parking in healthcare institutions will be free. In addition, a maximum rate of between $7 and $10 per day will be set depending on the region.

  • Payment of the solidarity tax credit to all social assistance recipients entitled to it

For the instalment period beginning on June 1, 2019, social assistance recipients will have access to the basic amount of the QST component of the solidarity tax credit, without having to file their income tax return.

  • Revalorization of exemptions granted for the purpose of calculating the premium payable to the public prescription drug insurance plan

The Government is announcing an increase in the amount of exemptions granted for the payment of the deductible and co-insurance payable for an order or renewal for adult social assistance recipients.

To find out more, communicate with your FBL representative.

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