Upgrade Skills and Stay Relevant With This New Canadian Tax Credit

With today’s rapid rate of technological change, predicting the skills you’ll need to stay at the top of your career game can seem like a daunting task.  Some estimates predict that 400 million global workers could be displaced as a result of automation by 2030, and that’s just assuming the pace of automation adoption is in the midrange of forecasts!   

While an Internet search of tomorrow’s most in-demand career skills will turn up a variety of answers that vary based on the expert being asked, there is common thread that runs between these diverse perspectives. Life-long training and skill shifting will be absolutely mandatory to stay relevant in the new world of work.  

For workers who don’t have access to corporate training and tuition reimbursement programs, the cost of courseto help ensure your skillset stays in demand can quickly add up. A new program announced in the Government of Canada’s 2019 Federal Budget is aimed at providing some relief. 

The Canada Training Credit is a refundable tax credit that will provide financial support to help cover up to half of eligible tuition and fees associated with training. Starting in 2019, Canadians between the ages of 25 and 64 who file tax returns and have employment income, including self-employment income, between $10,000 and ~$150,000 will begin to accumulate $250 each yearThe balance will be tracked by the Canada Revenue Agency and up to $5000 can be accumulated in your tracking account over your lifetime.    

Beginning in 2020, the balance in your account can be applied against occupational skills training fees at colleges, universities and eligible institutions. Upon completion of the course, up to half of the course fees can be claimed when you file your income tax return for the year the course was taken. 

For example, suppose you chose to let your $250 credit accumulate beginning in 2019. By 2023, you would have a Canada Training Credit balance of $1000, which could be claimed fully against training and tuition fees of $2000 or more. If you enrolled in training with tuition fees of $1,500, you would receive a $750 refundable credit for the 2023 taxation year. The unused $250 in your account would continue to accumulate with ongoing annual $250 credits. By 2024 you would have a balance of $500 to apply against additional training fees.  

If you’re wondering if your current skillset could use some upgrading, browsing our current job opportunities is a simple way to get a better sense of the types of skills that are in high demand in your industry right nowYou can also sign up to receive regular job alerts for positions and sectors that are of interest to you so you can see shifts that occur in desired skillsets over time.