senior couple meets with advisor at home

If elected, the federal Conservative Party says it will increase the age credit by $,1000 a year per senior.

The age credit is income-tested, designed for low- to middle-income Canadian aged 65 and over, and it gradually phases out as income increases. The increase would be introduced in 2020–21 year and indexed to inflation.

To be eligible, a senior must not earn more than $87,750, according to a backgrounder provided by the party. Seniors would receive the full deduction if they earn less than $37,790.

If the new measure is implemented, the backgrounder said seniors earning up to to $37,790 would receive up to $150 more per year, and couples would receive up to $300 more.

For the 2018 tax year, seniors were able to claim up to $7,333 if they fell below the minimum threshold, which was $36,976. If they earned more than the minimum threshold but were still under the maximum threshold, the amount was clawed back based on how much their income exceeded the minimum.

A document explaining the Parliamentary Budget Officer’s costing of the proposed measure said that it would interact with “another proposal that would decrease progressively the federal income tax rate of the first bracket from 15% to 13.75% starting in 2021.”

The Conservatives said this would be the third time they have bumped up the credit — it was also done in 2006 and 2009, by the same amount, according to a press release.