Federal Budget Commentary 2024

On April 16, 2024, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2024 – Fairness for Every Generation, to the House of Commons.

No changes were made to personal or corporate tax rates. Some highlights include the following:

A.    Personal Measures

  • An increase to the capital gains inclusion rate to 2/3, however individuals will retain the 1/2 inclusion rate on the first $250,000 of capital gains annually.
  • An increase to the lifetime maximum capital gains exemption, and two new incentives on specific types of business sales.
  • Modifications to the proposed amendments to focus the alternative minimum tax regime on high-income individuals.

B.    Business Measures

  • A Canada carbon rebate for small businesses that will begin by delivering payments to eligible CCPCs for five years of carbon tax.
  • Accelerated capital cost allowance on purpose-built residential rental properties.
  • Immediate expensing of certain productivity-enhancing assets, including computer hardware, acquired on or after April 16, 2024.

C.    International Measures

  • A crypto-asset reporting framework that will require annual reporting by crypto-asset service providers on their clients’ activities using these assets.

D.    Sales and Excise Measures

  • Extension of the GST exemption for new purpose-built rental housing projects to not-for-profit universities, public colleges and school authorities.

E.     Other Measures

  • Details on the Canada disability benefit intended to commence in July 2025.

F.     Previously Announced Measures

  • Intention to proceed with previously announced measures, including the denial of expenses for non-compliant short-term rental activities; the exemption of certain services of psychotherapists and counselling therapists from GST/HST; proposals related to the underused housing tax; temporarily pausing the fuel charge on heating oil; various clean energy tax credits; and other initiatives related to the clean economy.

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Posted: 5/2/24