One of the campaign trail promises was to double TFSA contribution limits to $10,000/year if/when the budget is balanced.
Given the existing projections of the federal government, this may not happen for a few years, if ever.
However, an increase in TFSA contribution limits would make them much more significant vehicles for investing than present. It is a much more functional solution than giving some form of relief on capital gains taxes – effectively the TFSA becomes the conduit for this, or for relieving people from paying taxes on interest income.
Because of the contribution limit rate, TFSAs disproportionately favour lower net worth individuals – for example, if your net worth was $20,000, you could invest it all tax-free but if your net worth was $1,000,000 then it would be a drop in the bucket. It is a surprisingly egalitarian method to allowing tax-free compounding of capital.
The only negative part of the TFSA is that you can’t write off capital losses – so make those choices carefully.