On March 19, 2007, Finance Minister Flaherty delivered his government’s second federal budget since having been elected in January 2006. Three new measures for Canadians with disabilities and those affecting our sector were described by the Minister of Finance, Honourable Jim Flaherty.

RDSP, CDSG and CDSB
The Registered Disability Savings Plan is policy that the Department of Finance had been working on for the past few years, and one that was ramped up last fall with the Expert Panel of Financial Security for Children with Severe Disabilities. The RDSP was also actively promoted by many groups during the last two federal elections, and was one of the supplementary highlights of our advocacy toolkit during our 2006 election coverage.

The RDSP will take effect in 2008, following the required amendment to the Income Tax Act, and will be based generally on the registered education savings plan design. If someone is eligible for the Disability Tax Credit, they may also establish or participate in an RDSP. Also introduced were the Canada Disability Savings Grant and the Canada Disability Savings Bond.

The RDSP will not reduce Old Age Security or EI payments, and are designed to avoid “claw-backs” from provincial programs (although it is stated that the Minister of HRSDC will be discharged with the task of ensuring federal-provincial harmonization of the program).

Eliminating Capital Gains Tax on Charitable Donations to Private Foundations
Budget 2007 proposes to exempt donations of publicly-listed securities to private foundations from capital gains tax. These measures will be effective as of March 19, 2007. Last year’s Budget eliminated capital gains tax on donations of publicly-listed securities to public charities. To date, donations of publicly-listed securities to private foundations have not been eligible for a reduced inclusion rate on capital gains. This has been due to concerns regarding the adequacy of current legislative provisions to safeguard against potential conflicts of interest, or "self-dealing," which could arise when individuals with significant holdings in a corporation also have influence over the management of a foundation’s holdings of the same corporation. Budget 2007 proposes to introduce excess business holdings rules which will provide private foundations with clear rules to minimize potential conflicts of interest.

Enabling Accessibility Fund
Budget 2007 also proposes the creation of an Enabling Accessibility Fund.

This fund will contribute to the capital costs of construction and renovations related to physical accessibility for persons with disabilities. Approved projects will have strong ties to, and support from, the communities they serve. These projects could include new construction, such as abilities centres that offer programs to individuals of varying physical abilities. Smaller projects such as adding a ramp to an existing building could also be funded. Details of the Enabling Accessibility Fund will be developed by the Minister of Human Resources and Social Development in partnership with the provinces and community groups over the next several months. This measure is valued at $45 million over three years.

The efforts of all the groups and individuals who have pressed the government for such changes should be celebrated. The government itself should be commended for its commitment to advancing the work of our sector, and recognizing the importance of advancing accessibility in Canada. Thumbs Up to the Prime Minister, the Minister of Finance and all the senior policy advisors and public administrators in the Department of Finance who find the ways and means to turn such ideas into reality.

Technical Information From the Department of Finance on the Registered Disability Savings Plan

For More Information Contact:

Steven Christianson, MA
Manager
Government Relations & Advocacy
ONTARIO MARCH OF DIMES/MARCH OF DIMES CANADA
10 Overlea Blvd.
Toronto, ON M4H 1A4
Tel: 416-425-3463 ext. 7326
Toll-free: 1-800-263-3463 ext. 7326
Fax: 416-425-1920
schristianson@dimes.on.ca