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Repsheet Canada

C-69

Budget Implementation Act, 2024, No. 1

Details

Full Title
An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024
First Reading
May 2, 2024, Parliament 44, Session 1
Type
House Government Bill
Full Content
https://www.parl.ca/legisinfo/en/bill/44-1/c-69

Summary

The Budget Implementation Act, 2024, No. 1 (Bill C-69) is a comprehensive piece of legislation that puts into action parts of the budget presented to Parliament on April 16, 2024. The bill touches on various areas of the Canadian economy and society by making changes to existing laws and creating new ones. Part 1 focuses on income tax changes like denying deductions for non-compliant short-term rentals, exempting international shipping income for certain companies, and increasing tax credits for volunteer firefighters. Part 2 introduces the Global Minimum Tax Act to ensure large multinational corporations pay a minimum 15% tax rate. Part 3 deals with excise taxes on goods like tobacco and vaping products. Finally, Part 4 implements a series of diverse measures, including changes to housing policies, student loans, and consumer-driven banking.

In taxation, the bill impacts income tax deductions, tax credits, and introduces a global minimum tax. It prevents income tax deductions for expenses related to short-term rentals that don't follow the rules. It also gives tax breaks to volunteer firefighters and search and rescue volunteers, and extends eligibility for the Canada Child Benefit after a child dies. The bill raises the cap on eligible newsroom labor expenditures and increases the Canadian journalism labor tax credit. It also provides tax credits for mineral exploration and clean hydrogen projects. For global tax policy, the bill enacts the Global Minimum Tax Act, ensuring large multinational corporations pay a minimum 15% tax rate.

With regards to government spending and debt, the bill primarily addresses financial measures and funding allocations across a range of sectors. It covers the increase of guarantee limits by the Canada Mortgage and Housing Corporation(CMHC). It also includes authority for payments to provinces for a national school food program. The bill increases financial assistance for foreign states and modernizing financial institutions. It lowers the limit for total liabilities and obligations under the Export Development Act. There are also measures related to public debt and the borrowing of money, including clarifying regulations for borrowing contracts and increasing borrowing limits. Finally, it requires certain financial institutions to disclose information on diversity among directors and senior management, and extends the period financial institutions can conduct business.

The bill introduces several measures related to skills training, student support, and employment. It increases the withdrawal limit under the Home Buyers' Plan and allows a longer repayment period. The bill also expands eligibility for student loan forgiveness to early childhood educators, dentists, and other healthcare professionals. It increases the maximum age for Canada Learning Bond beneficiaries. The bill also clarifies the definition of "employee" under the Canada Labour Code, improving access to protections for employees. Finally, there is an extension to employment insurance benefits for seasonal workers.

There are some aspects of the bill dedicated to healthcare, foreign aid, and Indigenous Reconciliation. The bill enhances the Canada Health Transfer for qualifying provinces and territories. In terms of foreign aid, it increases the maximum financial assistance and payment that may be provided in respect of foreign states to the International Monetary Fund. There are also provisions authorizing loan guarantees as part of an Indigenous loan guarantee program, as well as authorizing payments for a pilot project for a Red Dress Alert. The bill also exempts from taxation any income of the trusts established under the First Nations Child and Family Services, Jordan’s Principle, and Trout Class Settlement Agreement.

Issues

Economy

  • Inflation and Cost of Living

    Part 1 of the bill addresses inflation and cost of living by increasing the home buyers’ plan withdrawal limit from $35,000 to $60,000 and deferring the repayment period by three additional years. Division 3 of Part 3 amends the Underused Housing Tax Act and Regulations by eliminating filing requirements for some owners, reducing minimum penalties for failing to file, and introducing a new exemption for residential properties held as a residence for employees. Part 4 also includes the authorization of payments to provinces for a national school food program.

  • Jobs

    Part 1 of the bill increases the cap on labor expenditures per eligible newsroom employee and the Canadian journalism labor tax credit rate. Division 21 of Part 4 amends the Canada Labour Code to improve access to protections for employees by providing that a person who is paid remuneration by an employer is presumed to be their employee unless the contrary is proved by the employer. Division 23 of Part 4 extends the duration of increased employment insurance benefits for seasonal workers.

  • Taxation

    Part 1 implements several measures related to taxation, including denying income tax deductions for non-compliant short-term rentals, exempting international shipping income of certain Canadian resident companies, and exempting from taxation the income of trusts established under the First Nations Child and Family Services, Jordan’s Principle, and Trout Class Settlement Agreement. It also doubles the volunteer firefighters and search and rescue volunteers tax credits and extends eligibility for the mineral exploration tax credit. Additionally, it provides a refundable tax credit to small and medium-sized businesses in designated provinces. Part 2 enacts the Global Minimum Tax Act, which ensures that large multinational corporations are subject to a minimum effective tax rate of 15% on their profits.

  • Spending

    The bill authorizes the appropriation of public revenue to implement the measures outlined within it. Division 2 of Part 4 increases the in-force limits for guarantees issued by the Canada Mortgage and Housing Corporation (CMHC) and amends the Borrowing Authority Act to avoid double counting liabilities related to Canada Mortgage Bonds. Division 3 of Part 4 authorizes payments to provinces for a national school food program. Division 6 and 7 of Part 4 increases financial assistance that may be provided in respect of foreign states to the International Monetary Fund.

Social Services

  • Healthcare

    Division 12 of Part 4 amends the Federal-Provincial Fiscal Arrangements Act to enhance the Canada Health Transfer for qualifying provinces and territories. Division 4 of Part 4 expands eligibility for student loan forgiveness to dentists, dental hygienists, pharmacists, midwives, social workers, psychologists, personal support workers and physiotherapists.

  • Childcare

    Division 4 of Part 4 expands eligibility for student loan forgiveness to early childhood educators.

  • Seniors and Pensions

    Division 13 of Part 4 amends the Pension Benefits Standards Act, 1985 to require that the Superintendent of Financial Institutions publish certain information relating to pension plan investments. Division 14 of Part 4 amends the Canada Pension Plan to provide for a death benefit of $5,000 and clarify the determination of the payee of the disabled contributor’s child’s benefit.

Environment

  • Climate

    Part 1 of the bill provides a refundable investment tax credit to qualifying businesses for investments in certain clean hydrogen projects and clean technology manufacturing property. It also provides a refundable tax credit to small and medium-sized businesses in designated provinces by returning a portion of fuel charge proceeds from the province.

  • Environmental Protection

    Division 28 of Part 4 amends the Impact Assessment Act to align the preamble and purpose provision with the primary objective of that Act, which is to prevent or mitigate significant adverse effects within federal jurisdiction.

  • Energy

    Part 1 of the bill provides a refundable investment tax credit to qualifying businesses for investments in certain clean hydrogen projects. Subclause 66.8(1)(a)(ii)(B)(I) of the Act is also amended to include the clean hydrogen tax credit.

Social Justice

  • Reconciliation

    Division 25 of Part 4 authorizes a corporation that is to be incorporated as a wholly owned subsidiary of the Canada Development Investment Corporation to provide loan guarantees as part of an Indigenous loan guarantee program.

  • Income Inequality and Poverty

    Part 1 of the bill extends the eligibility for the Canada Child Benefit in respect of a child for six months after the child’s death.

Security and Defense

  • Crime

    Division 35 of Part 4 amends the Criminal Code to create new offences in respect of motor vehicle theft, including an offence concerning the possession or the distribution of an electronic device suitable for committing theft of a motor vehicle, and in respect of criminal organizations.

  • Foreign Aid

    Division 6 of Part 4 amends the Bretton Woods and Related Agreements Act to increase the maximum financial assistance that may be provided in respect of foreign states.