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2009 BC Budget Update
September 1, 2009

During a time of dramatically falling provincial revenues, the BC government has announced additional deficit spending measures in BC’s second budget of 2009 tabled on September 1^st. The Budget Update takes steps to protect public services and to keep BC’s economic stimulus package on track.  The Budget Update contains revised deficit forecasts of $2.8 billion in 2009/10, $1.7 billion in 2010/11, and $945 million in 2011/12.

A summary of the more significant tax-related measures that were unveiled in the Budget Update are outlined below.

Basic Personal Amount Tax Credit – Effective January 1, 2010, the basic personal amount tax credit is increased to $11,000 from the 2009 amount of $9,373.  The spouse and eligible dependant amount are also increased by $1,627 above the 2009 amounts to $9,653 (reduced when spousal income exceeds $965).

BC Mining Flow-through Share Tax Credit (MFTS) – The expiry date for the BC MFTS tax credit is extended for an additional year to December 31, 2010.

Corporate Income Tax Small Business Threshold – Effective January 1, 2010, the small business limit to which the small business corporate income tax rate may be applied is increased from the current $400,000 to $500,000 (matching the current federal limit).  Corporations will pro-rate their business limits based on the number of days in the taxation year before and after January 1, 2010. 

Medical Services Plan (MSP) Premiums – Effective January 1, 2010 Medical Services Plan premium rates will increase by about 6% - a maximum of $3 per month for single people, or $6 per month for families. The MSP Premium Assistance program is enhanced by increasing the adjusted net family income thresholds by $2,000 each.  

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