“A plan to grow our economy and make life more affordable”
On April 7, 2022, Finance Minister Chrystia Freeland released the Liberal Government’s federal budget. Budget 2022 is focused on measures intended to assist Canadians with affordability (particularly when it comes to housing, child care, and health care), with some measures on climate action and investing in innovation and productivity.
Measures to support housing affordability
- New Tax-Free First Home Savings Account
- New Multi-generational Home Renovation Tax Credit
- New Residential Property Flipping Rule
- Increase the existing Home Buyers’ Tax Credit and Home Accessibility Tax Credit
- Proposal to prohibit foreign acquisitions of residential homes for 2 years
Support for low-income families
- One-time $500 payment for those facing housing affordability issues
- $5.3 billion for National Dental Care program in cooperation with the NDP
Increase taxes on banks and insurance companies
- One time 15% tax on 2021 income above $1 billion (Canada Recovery Dividend)
- Increase corporate income tax by 1.5% on taxable income above $100 million
Support for small to mid-size businesses
- Extend the range to which the reduction on the Small Business Deduction Limit applies
Good News
Budget 2022 does not propose changes to personal income tax rates and brackets, the capital gains inclusion rate of 50% or corporate income tax rates (except for certain banks and insurance companies.)
