The federal government has launched consultations for Budget 2024, with a focus on delivering fairness across generations, ensuring every Canadian has access to the opportunities they deserve. Through targeted investments, housing initiatives, and improved tax measures, Budget 2024 is set to address key challenges, including housing affordability, economic growth, tax fairness, and a stronger financial sector. Below are the key takeaways from the announcement.
Housing Measures for All Canadians
In response to the ongoing housing crisis, Budget 2024 proposes:
- Removing the GST on co-operative housing: This measure targets long-term rental solutions, making housing more accessible for Canadians.
- Incentives for rental housing construction: A new 10% Accelerated Capital Cost Allowance (ACCA) will boost rental housing development for projects starting in 2024.
- Easier mortgage rules for secondary suites: Canadians will now find it simpler to add secondary suites, increasing housing availability and affordability.
Economic Growth and Clean Energy Initiatives
To drive innovation and job creation, Budget 2024 outlines several new measures:
- Canadian Entrepreneurs' Incentive: Entrepreneurs will benefit from a reduced capital gains inclusion rate, incentivizing new business ventures.
- Clean energy credits: Expanded Clean Technology and Clean Electricity investment tax credits will promote clean energy development, including biomass projects.
- Support for critical minerals: The Clean Technology Manufacturing investment tax credit has been updated to further boost the mining sector.
Tax Fairness for a Stronger Economy
Tax fairness is a cornerstone of Budget 2024, with measures designed to generate long-term benefits:
- Increased capital gains inclusion rate: For Canadians with capital gains exceeding $250,000 annually, the rate will increase from one-half to two-thirds.
- Expanded Lifetime Capital Gains Exemption: Now at $1.25 million, this change will help small businesses and families retain more of their hard-earned wealth.
- Support for Employee Ownership Trusts: The first $10 million in capital gains from the sale of a business to employees will be exempt from taxation.
A Financial Sector that Works for All
The government is committed to making Canada’s financial sector more inclusive and secure:
- Consumer-Driven Banking Framework: This will give Canadians secure access to financial tools, such as on-time rent payment reporting, to boost credit scores.
- Protection from predatory lenders: Strengthening the Criminal Code to shield vulnerable Canadians from high-interest lending practices.
- Financial Institutions’ Statutes Review: A review is underway to ensure the financial sector remains modern and meets the evolving needs of Canadians.
How to Share Your Feedback
The Department of Finance invites Canadians and stakeholders to provide their feedback on these important measures. The government is particularly seeking input on housing, tax fairness, and financial reforms. Here’s how you can participate:
- Capital Gains Inclusion Rate & Lifetime Capital Gains Exemption: Consultation open until September 3, 2024.
- Secondary Suites and Housing Measures: Email your feedback to [email protected].
- Consumer Banking Framework and Financial Protections: Share comments at [email protected] or [email protected]
