2024 Federal Budget @ your fingertips
Highlights
Budget Proposal
Implication of Change
Housing
Secondary suite lending program
Up to $40,000 in low interest loans to convert existing space
Up to $7,500 for new unit secondary suite for senior or adult with disability
$600 Million for homebuilding innovation
New $6 Billion Canada Housing Infrastructure Fund
Canada Builds” $15-billion top-up to the Apartment Construction Loan Program
Implement changes to mortgage regulations, including mortgage insurance rules plus 30 yr. mortgages for 1st time homebuyers
Launch: Canadian Renters’ Bill of Rights and $15M Tenant Protection Fund; plus $1 billion in loans and $477 million in contributions to fund; and $1.5 billion Canada Rental Protection Fund
Home Buyers Plan enhancement: eff. Apr, 16, 2024, can withdraw up to $60,000 from RRSP towards home purchase
Payback into RRSP now begins 5 yrs. later for withdrawals made between 2022-25
Allow senior homeowners to age in place, optimize “vacant” space and generate income; offers more housing units
Allow homeowner to refinance insured mortgage to access home equity to convert part of home into rental suite
Build 3.9 million homes by 2031 Scale-up modular and prefabricated homes; change how we build homes
Housing Accelerator Fund top
up to $4.4 Billion to speed up
construction of $12,000 new
homes in 3 yrs
Housing infrastructure fund
needs provincial buy-in; includes
$1 Billion waste, stormwater and
solid waste infrastructure
Top up Construction Loan Program
Provide relief for 1st time
homebuyers
improve renter credit scores for those who pay in full and on time and preserve rent prices
Capital gains
Capital gains inclusion of 2/3 effective June 25, 2024, not prorated, so only on sales after this date
For individuals on capital gains >$250,000
Corporations and trusts subject to 2/3 inclusion rate on all capital gains, up from ½
Lifetime capital gains exemption increasing to $1.25 Million for qualifying businesses, July 1, 2024, indexing in 2026
Support massive pre-promised initiatives for housing, health, childcare of which >$17 billion are loan based
Capital gains inclusion rate for individuals stays at ½ for sales up to $250,000; two different rates apply for 2024
Need for more individual and corporate tax planning; will impact sales of investment properties, vacation homes, corporately held investments
Canadian Entrepreneurs’ Incentive reduces inclusion rate to 1/3 on lifetime maximum of $2 Million in eligible capital gains
Remember 10 yr. capital gains reserve vs. normal 5 yrs. for Employee Ownership Trusts
More incentive for entrepreneurs to develop business and benefit from success, phased in at $200K on Jan. 1, 2025, increasing to $2 Million by Jan. 1, 2034; not available for professional corp., financial services, real estate food, accommodation, arts, recreation and entertainment, consulting or personal care
Alternative Minimum Tax (AMT) amendments
Revised tax treatment of charitable donations allowing individuals to claim 80% (vs. previous 50% of the Charitable Donation Tax Credit) when calculating AMT
Fully exempt Employee Ownership Trusts from AMT
Reduce punitive measure affecting charitable sector
More amendments to permit more deductions (Guaranteed Income Supplement, social assistance, Workers Comp.); allow more credits eligible for AMT carry‑forward
AMT exemption for trusts benefiting Indigenous people
Healthcare
National Pharmacare Act phase one rollout
$500 Million for Youth Mental Health fund
Canadian Dental Plan information sharing
$77.1 million over four years in 2025-26, to more effectively integrate internationally educated health care professionals into Canada’s health workforce
Consultation launch on development of National Caregiving Strategy
Upgrade Health Canada’s supply management capacity for drugs and medical supplies
Universal single payor health coverage for most prescription diabetes meds and contraceptives; enhanced healthcare spending across Canada to cover full costs
Help community organizations provide more care
Updated process so CRA can share taxpayer information to help administer and enforce Canadian Dental Plan
National defence and Intelligence
$8.1 billion over next five years; and
$2.4 billion to build capacity in artificial intelligence (AI), mainly for computing capabilities and technical infrastructure
Including $200M to boost adoption of AI in health care, agriculture and clean technology
Part of long-term defence policy update to increase military spending to 1.76% of GDP by 2030
Boost adoption of artificial intelligence in specific sectors to improve effectiveness and efficiency
Childcare Centres
$1 billion in loans and $60 million in grants to build or renovate childcare centres
$48 million to extend student loan forgiveness for early childhood educators
Improve child care support
Energy transition
Introduce or expand a variety of measures to help with the Government’s energy transition strategies
Provide $607.9 million over two years, starting in 2024-25, to Transport Canada to top-up the Incentives for Zero Emission Vehicles program
Encourage more people to buy zero emission vehicles
Employee Ownership Trusts (EOT)
Temporary tax exemption for qualifying transfers to employee ownership trusts on first $10 Million of capital gains realized on sale to EOT, subject to certain conditions; plus more details on other exemptions and conditions
For three years (2024-26)
Provides exit option for business owners and opportunity for employees to maintain business with no upfront funding
Fully exempt Employee Ownership Trusts from AMT
10 yr. capital gains reserve vs. normal 5 yrs.
Disability Supports
New Canada Disability Benefit up to $200/mo. for those with valid Disability Tax Credit certificate and be exempt as income from provincial/territorial supports
Expanding the Disability Supports Deduction
Income for low income persons with disabilities ages of 18-64
Additional expenses eligible for the deduction, subject to certain conditions; including trained service animals, alternative computer input devices, ergonomic work chairs and bed positioning devices
Cracking down on auto theft
Amend Criminal Code introducing new offences and aggravating factor if offender involved young person
Regulate the sale, possession, distribution, and import of devices used to steal cars
Addressing harms to Canadians, rising insurance rates, replacing vehicles and out of pocket costs
Supporting the Trades
$10 million over two years, starting in 2024-25, for the Skilled Trades Awareness and Readiness Program to encourage Canadians to explore and prepare for careers in the skilled trades
$90 million over two years, starting in 2024-25, for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices
To encourage more people to pursue a career in the skilled trades
