Tories leave income tax untouched

Aside from high-profile changes to Old Age Security, the proposed federal budget holds little in the way of personal income tax changes.

However, it does offer measures to improve the Registered Disability Savings Plan for families that have a child with severe disabilities.

The budget could have offered more on the personal tax side, the Canadian Institute of Chartered Accountants said.

“There’s not a lot of personal income tax measures,” said chartered accountant Don Carson. “Right now the tax system is very complex. They could have removed some of the complexity.”

On Registered Disability Savings Plans, the proposed budget would:

Provide greater access for small withdrawals from RDSP savings.

Increase the annual maximum withdrawal limit on certain RDSPS

Require minimum withdrawal payments from the RDSP when the beneficiary reaches age 60.

Allow investment income earned in a Registered Education Savings Plan to be transferred tax-free to the beneficiary’s RDSP.