The proposal introduces targeted relief to support households, boost savings, and encourage long-term wealth building through tax and retirement savings reforms.

Cap Gains Tax (CGT) relief and thresholds

  Residence CGT threshold increases from 2,000,000 to 3,000,000, offering greater relief for primary residences and long-term homeowners.

  Overall effect: reduced tax on asset disposals and improved after-tax proceeds for individuals selling principal residences or other assets.

Individual tax brackets and relief

  Brackets are adjusted to reflect inflation and rising living costs.

  Middle- and lower-income households benefit from a lower marginal tax burden, increasing disposable income and spending power.

Tax-free savings account (TFSA) uplift

  Annual TFSA limit rises from 36,000 to 46,000.

  Expands tax-advantaged savings opportunities, encouraging more frequent and larger tax-efficient investments.

Retirement annuity deductibility (new/more generous)

  Maximum deductible contributions rise from 350,000 to 430,000.

  Encourages higher retirement savings, with immediate tax relief on larger contributions and stronger long-term retirement readiness.

Overall household impact

  Higher take-home pay for many earners, increased savings capacity, and a more favorable environment for wealth accumulation over time.

  Expected improvements in financial resilience, lower effective tax on savings, and a clearer path to retirement readiness.