The Liberal Party has won the federal election, and Prime Minister Mark Carney will have his work cut out for him as Canadians face the financial impacts of the trade war and ongoing cost-of-living concerns.
Here’s a breakdown of the major personal finance promises the party made during the election campaign, and how they could impact your pocketbook.
Voters arrive to cast their ballots in advance polls for the 2025 federal election in Carstairs, Alta., on April 18.Jeff McIntosh/The Canadian Press
Seniors and retirement
The Liberals have promised two major changes for seniors, but both would only last a year.
First, they pledged to reduce the minimum amount that must be withdrawn from a registered retirement income fund, or RRIF, by 25 per cent.
Currently, Canadians must either convert their registered retirement savings plans into a RRIF or buy an annuity by Dec. 31 of the year they turn 71. Once an RRSP is converted into a RRIF, individuals must start withdrawing a minimum amount each year, which counts as taxable income.
Anita Bruinsma, certified financial planner and owner of Clarity Personal Finance, said this could benefit people who have been holding off on selling investments to avoid paying taxes on large capital gains.
With smaller required withdrawals (and less taxable income), they might be able to realize more gains “without going up a tax bracket or having an OAS clawback,” she said. It also gives retirees more breathing room if markets are volatile and their RRIF balances are down.
The second Liberal promise is to temporarily increase the Guaranteed Income Supplement by 5 per cent, providing up to $652 more to low-income seniors, tax-free.
Taxes
The Liberals pledged a middle-class tax cut by reducing the marginal tax rate on the lowest income bracket by one percentage point. They estimate it would save two-income families up to $825 per year.
Financial planners say this is largely an insignificant change but will be most meaningful for lower-income households.
The party also plans to deliver automatic tax filing, starting with low-income households and seniors, and said they will review and consider expanding the criteria for the Disability Tax Credit, a critical gateway to accessing key federal disability support programs.
DARRYL DYCK/The Canadian Press
Housing
The Liberals promised to increase housing supply by doubling the speed of construction to 500,000 new homes a year. To do that, the party pledged to create an entity called “Build Canada Homes,” that acts as a developer to oversee the construction of affordable housing.
The party also plans to provide $25-billion in financing for prefabricated home builders, and $10-billion in low-cost financing and capital for builders of affordable homes.
First-time homebuyers were also promised some relief, no longer having to pay GST on purchases of homes priced at or less than $1-million, and lower GST on homes between $1-million and $1.5-million.
Marc Henein, a senior wealth adviser at ScotiaMcLeod, advises first-time homebuyers to “give some pause” and wait and see if these policies get put in place. If so, then take advantage of the savings.
Cost of living
In addition to GST cuts for first-time homeowners, the Liberals have promised additional funding for home retrofits and incentives for lowering utility bills. Canadians could receive help paying for insulation upgrades, heat pump installation and window replacements, for example.
The party has also pledged to expand dental coverage to Canadians aged 18-64 and save Canadians around $800 in dental-care costs.
To tackle food security, the party said it will invest more in greenhouses and other controlled environment agriculture that allow producers to grow more food at home. They promised to help farmers get their goods to market at a lower cost by extending a pilot program designed to give farmers, manufacturers and wholesalers more choice in their rail service.
The Liberals, along with other parties, have remained mum on plans to improve transportation, which has become a significant expense for Canadians outside of housing, said Mike Moffatt, founding director of the Missing Middle Initiative, a project housed in the University of Ottawa’s Institute for the Environment and aimed at reviving Canada’s urban middle class.
Job skills and training
The Liberals have promised to expand job training and upskilling opportunities for workers, while making it easier to access Employment Insurance and benefits.
For those in the skilled trades, the Liberals have proposed covering apprenticeship training costs up to $8,000.
Workers in key sectors such as health care, manufacturing, construction and technology could receive up to $15,000 in job training support. The Liberals also plan to double the funding for the Union Training and Innovation Program to $50-million from $25-million annually.
For workers at risk of being affected by tariff-related layoffs, the Liberals have pledged to speed up EI access and have already reduced the waiting period to one week from two. They now propose temporarily eliminating the waiting period altogether.
“They’re looking to bring back the measures that were successful during COVID,” said Andrew Monkhouse, managing partner at Monkhouse Law.
The Liberals also want to expand tax deductions for workers who relocate for job opportunities. Workers travelling more than 120 km to a job site would be able to deduct more expenses, increasing their annual limit.
Child care
The Liberals promised to protect the Canada Child Benefit, a monthly payment for low- and middle-income families with children, and strengthen the $10-a-day early learning and child care (ELCC) program.
Families currently on waitlists may find a spot sooner, as the Liberals have promised to create 100,000 new spaces by 2031 and add 35,000 jobs for ELCC workers.
The Liberals have also said they will work with provinces and cities to expand child care in publicly-owned facilities such as schools and community centres, as well as community buildings that receive federal financing. If successful, this may help some Canadians access child care closer to home.
Editor’s note: A previous version of this article incorrectly stated that the Liberals promised the construction of 50,000 new homes a year. The correct number is 500,000. This version has been updated.
