Budget 2024 is now available and can be viewed here.
As seen in the 2023 Financial Statement, Budget 2024 is light on border- and trade-related measures. Budget 2024 focuses on $52.9 billion in new spending that is focused on economic justice for younger generations, and improving affordability for middle class Canadians.
Some announcements of note:
- extend the mortgage amortization period to 30 years for first-time homebuyers purchasing new build
- increasing the amount of public lands available for home construction, including Canada Post and National Defence properties
- $48 million over four years and $15.8 million thereafter to forgive the loans of early childhood educators. Another $253.8 million over four years, plus $84.3 million a year thereafter, will go towards loan forgiveness for health and education workers, including hygienists, pharmacists, teachers and social workers
- $900 million over six years for greener homes and energy efficiency programs
- A new tax credit for about 600,000 small and medium-sized businesses worth $2.5 billion that disburses fuel charge proceeds dating back to 2019
- Excise taxes on tobacco and vaping products are increasing by $4 on a carton of cigarettes and by 12% on vape supplies expected to increase revenue by $1.7 billion over five years.
- People realising capital tax gains of more than $250,000 will pay tax on the excess at a rate of 66.7%, up from 50% at present
- All capital gains realised by companies and trusts will be taxed at 66.7%.
Customs Duties
- The outlook for excise taxes and duties has been revised down in 2023-24 owing to lower-than-expected GST receipts and customs import duties.
- Customs import duties are projected to decrease by 8.3 per cent to $5.6 billion in 2023-24, due to weak year-to-date results driven by lower imports. Over the remainder of the forecast horizon, customs import duties growth is projected to average 4.7 per cent.