On April 7, 2022, Finance Minister Chrystia Freeland tabled the 2022 Federal Budget.
The primary focus of the 2022 Federal Budget has been the Canadian housing crisis. Canadians are spending a greater share of their income on housing than ever before, with no end in sight. Budget 2022 attempts to tackle this issue, along with dental care and the economy.
Housing
- Profits on homes owned for less than 12 months are proposed to be taxed as business income, with certain exemptions.
- The government has proposed the creation of the Tax-Free First Home Savings Account, which would allow first-time homebuyers to save up to $40,000.
- The First-Time Home Buyers’ Tax Credit is proposed to be doubled to $10,000 for homes bought after January 1, 2022.
- Proposed restrictions would prohibit foreign commercial enterprises and people from acquiring residential property in Canada for a period of two years.
- A new tax credit has been proposed for those who would like to build a secondary suite in their home for a senior or adult with disabilities in their home.
- A one-time, $500 payment is to go to those facing housing affordability challenges.
Affordability of Dental Care
- Dental treatment will be offered to Canadians with annual family incomes of less than $90,000.
- This will begin by being offered to children under the age of 12 in 2022.
- Children under the age of 18, seniors, and people with disabilities will be eligible in 2023.
- The goal is to have full implementation by 2025.
Jobs and Growth
- Access to the small business tax rate will be phased down more gradually, with access ending when taxable capital hits $50 million, rather than $15 million.
- A new Labor Mobility Deduction has been proposed, which would allow eligible tradespeople and apprentices to deduct up to $4,000 per year in eligible travel and temporary relocation expenditures.
- The Canada Growth Fund will attract large private sector investment with the goals of reducing emissions, diversifying into new technologies, and restructuring critical supply chains.
Elite Accounting will continue to monitor updates on the federal budget and relay new information to our clients and community as they are released.
Published by Elite Accounting Inc.
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