Brokers applaud federal budget provisions for education, small business

Insurance brokers are pleased with two federal budget announcements which they say will promote continuing education and help small businesses. The Insurance Brokers Association of Canada (IBAC), reacting to the budget handed down by Prime Minister Paul Martin and announced by Finance Minister Ralph Goodale on March 23, says it had lobbied for the “education tax credit” to be extended to individuals taking work-related courses. Formerly, this credit was only available to students in non-work-related programs, but now those taking professional courses will be able to claim up to $400 per month for full-time students and $120 per month for part-time students.
“The Education Tax Credit for education related to current employment when the costs are not reimbursed by employers is good news for insurance brokers and other professionals,” says IBAC president Ken Orr.
IBAC says the assistance for small businesses announced in the federal budget was “an added an unexpected bonus”. The government says it will move up a plan to increase the small business tax deduction limit by one year. The amount of income eligible for the preferential tax rate of 12% will increase to $300,000 by 2005.