Poilievre to hike TFSA contribution limit by $5K for those who invest in Canadian companies

John Paul Tasker · CBC News

· Posted: Mar 27, 2025 9:52 AM EDT | Last Updated: 6 minutes ago

Conservative Leader Pierre Poilievre announced Thursday that a authorities led by him would let Canadians to lend $5,000 much a twelvemonth to their tax-free savings relationship (TFSA) — arsenic agelong arsenic that other currency is being invested successful Canadian companies.

Poilievre is pitching it arsenic a mode to support much concern dollars astatine location due to the fact that the other publication bounds volition beryllium earmarked for Canadian investments alone.

"It volition assistance america go much self-reliant and sovereign arsenic we basal connected our ain 2 feet and basal up to the Americans," the Conservative person said successful a societal media video announcing the measure.

The TFSA, archetypal introduced by erstwhile premier curate Stephen Harper, is an immensely popular program. Nearly 18 cardinal Canadians person 1 of these accounts, according to the astir caller Canada Revenue Agency (CRA) data.

The wealth invested successful a TFSA tin turn tax-free, and dissimilar a registered status savings program (RRSP) account, there's nothing owed to the authorities erstwhile an concern is sold and wealth is pulled out. The publication bounds for this twelvemonth is $7,000.

Harper raised the yearly TFSA bounds to $10,000, but erstwhile premier curate Justin Trudeau dialled it backmost to $5,000 aft helium was elected, and past tied that magnitude to inflation, saying a much generous publication bounds lone benefited the affluent and pulled excessively galore concern dollars retired of the taxation system.

But CRA information suggests it's not conscionable the affluent who usage TFSAs — much than 9.8 cardinal relationship holders enactment immoderate wealth into 1 past year. Of that figure, 1.5 cardinal radical contributed the maximum amount.

WATCH | Are you getting the astir retired of your tax-free savings account?

Statistics Canada information besides shows the popularity of the relationship has increased in caller years, with Canadians contributing much than erstwhile the programme was archetypal launched arsenic less workplaces connection pension plans.

However, according to BMO, the average TFSA balance is just $44,987, acold little than the maximum presently allowed: $102,000.

Poilievre said Thursday the magnitude should rise, arguing his TFSA top-up volition reward "patriotic Canadians who volition put successful Canadian businesses and assistance turn our economy."

"Instead of rewarding radical for taking jobs and wealth retired of Canada, arsenic Carney and the Liberals did, we request a monolithic 'bring-it-home tax cut.' The Canada First TFSA is astir boosting Canadian businesses, unleashing our economy, truthful that we tin basal up to Trump from a presumption of strength," helium said.