Today, the Fall Economic Statement Implementation Act, 2022, also known as Bill C-32, received Royal Assent. This legislation includes key measures to help families cope with increasing costs, make housing more affordable, and build a thriving net-zero economy with opportunities and good jobs for Canadians.
One of the key measures in Bill C-32 is the permanent elimination of interest on Canada Student Loans and Canada Apprentice Loans. This will help reduce the burden of student loan debt on young Canadians. Additionally, the legislation cuts taxes for small businesses from 15 per cent to 9 per cent by gradually phasing out their access to the small business tax rate.
Bill C-32 also requires Canada’s largest financial institutions to pay their fair share through the implementation of the Canada Recovery Dividend, a one-time, 15 per cent tax on taxable income above $1 billion for banking and life insurer groups.
In terms of making housing more affordable, Bill C-32 introduces the Tax-Free First Home Savings Account, which allows prospective first-time home buyers to save up to $40,000 tax-free toward their first home. This measure will be available starting in mid-2023. The legislation also doubles the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset increasing closing costs.
Furthermore, Bill C-32 includes a new, refundable Multigenerational Home Renovation Tax Credit of up to $7,500, starting in 2023. This will help families afford to have a grandparent or a family member with a disability move back in if they wish to. The legislation also cracks down on house flipping by ensuring that profits from flipping properties held for less than 12 months are fully taxed, starting in 2023, with certain exceptions for unexpected life events.
In terms of investing in jobs and growth, Bill C-32 supports the launch of the new Canada Growth Fund, which will bring billions of dollars in private investment to Canada to reduce emissions, grow the economy, and create good jobs. The legislation also introduces a new 30 per cent Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada, and eliminates flow-through shares for fossil fuel sector activities by no longer allowing oil, gas, and coal exploration and development expenditures to be renounced to a flow-through share investor.
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said: “Our government is delivering on our plan to make life more affordable for Canadians and build an economy that works for everyone. Whether creating more good jobs for Canadians, making housing more affordable, or helping to make Canada more sustainable and more prosperous for generations to come, the Royal Assent of Bill C-32 is good news for Canadians from coast-to-coast-to-coast.”
- The Accountant.