??? 2025 Planning, Carbon Rebates, & Fed News | Ready?

IMPORTANT NOTICE

Holiday Closure Alert:? Our office will be closed from December 25, 2024 until January 1st, 2025.? We will reopen at 9:00 AM on Thursday, January 2nd, 2025.

REMINDER

Are you saving to buy your first home? If so, then do not forget to contribute to your First Home Savings Account (FHSA) by?December 31?and maximize your tax deduction for the year.

2025: A Year of Economic Shifts—What Canadian Entrepreneurs Need to Know

As 2025 begins, Canadian entrepreneurs face a mix of opportunities and hurdles. Here’s what’s shaping the landscape:

• GDP Growth: Expected at 1.5%, up from 1% in 2024, driven by lower interest rates boosting spending and investments.
• Interest Rates: Predicted to drop to 2.5% by year-end, easing borrowing costs for businesses and households.
• Key Challenges: High household debt, reduced immigration impacting labor markets, and trade uncertainty due to potential U.S. tariffs.

“The momentum from interest rate cuts will gradually build up, supporting growth throughout 2025,”?highlights the report, offering hope for increased consumption, real estate investments, and business expansion.

Opportunities for Entrepreneurs

Strengthen client relationships, focus on efficiency, and leverage lower rates to invest in growth.?Despite uncertainties, strategic planning and adaptability will help businesses thrive in the year ahead.

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Featured News

Canada Carbon Rebate: What Small Businesses Need to Know?

The?Canada Carbon Rebate for Small Businesses, introduced in Budget 2024, is a refundable tax credit returning federal fuel charge proceeds to eligible Canadian-controlled private corporations (CCPCs).

• No Application Needed: Eligible CCPCs will automatically receive the rebate.
• Payment Timeline: Most payments are expected by year-end, though delays may occur.
• Eligibility and Amounts: Rebates are calculated based on specific criteria. Check how much your business could receive.

For more details on eligibility, calculations, and timelines, visit the official website.

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Bank of Canada Cuts Rates Again: What It Means for You

The Bank of Canada has reduced its policy rate by 50 basis points to 3.25%, aiming to boost growth as inflation remains close to its 2% target. Lower rates are already spurring consumer spending and housing activity, though challenges like weaker GDP growth and rising unemployment persist. The Bank will evaluate future rate cuts based on evolving economic conditions, ensuring price stability remains its priority.

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