Missed Finance Minister Chrystia Freeland’s reading of the budget today, and don’t want to read all 738 pages of it? Here are some of the highlights:
- The federal government has committed to $30 billion over five years and $8.3 billion a year afterwards for early learning and child-care programs. The budget forecasts that the average cost of daycare will be reduced to $10 a day by 2025/26.
- Luxury cars and personal aircrafts that are over $100,000, or boats that are over $250,000, will be subject to a 10 to 20 per cent tax beginning on January 1, 2022. This is expected to raise $604 million over five years.
- Digital companies with gross revenues over $750 million euros will be subject to a three percent tax on revenues beginning on January 1, 2022. This is expected raise $3.4 billion over five years.
- Non-residents that own Canadian properties that are left vacant will be subject to a one percent tax on the value of the property beginning on January 1, 2022. This is expected to raise $700 million over four years.
- The budget contemplates $17.6 billion for the green recovery, with a goal of conserving 25 per cent of lands and oceans by 2025. This includes $4.4 billion to help homeowners complete approved energy retrofits with interest-free loans of $40,000, and $5 billion over seven years for the Net Zero Accelerator, a program to fast-track decarbonization projects.
- The COVID-19 wage subsidy, rent subsidy and lockdown supports have been extended to September 25, 2021, and the support payments will gradually be reduced beginning in July. A new measure has been introduced to help businesses hire staff. The Canada Recovery Hiring Program will provide qualifying employers with up to $1,129 per week for employees hired between June 6, 2021 and November 20, 2021.
- The budget introduced a new $15 federal minimum wage, which the federal government says will benefit the 26,000 workers in federally regulated private businesses as well as provide support for vulnerable workers.
- Pensioners aged 75 or older will receive a one-time taxable grant payment of $500 in August 2021. The budget contemplates that Old Age Security will be increased for this group by 10 per cent annually, beginning in July 2022.
This article is a general discussion of certain tax and accounting matters and should not be relied upon as tax or accounting advice. If you require tax or accounting advice, we would be pleased to discuss the issues in this article with you.
