Government Takes Next Step in Bringing Equality and Growth to Canadians

March 27, 2018 – Ottawa, Ontario – Department of Finance Canada

Making sure every Canadian has a real and fair chance at success is not just the right thing to do, it is the smart thing to do. Canada's future prosperity depends on it. To face the challenges of today and tomorrow, the Government of Canada will need the hard work and creativity of all Canadians. In return, the Government will ensure the benefits of a growing economy are felt by more and more people—with good, well-paying jobs for the middle class and everyone working hard to join it.

Finance Minister Bill Morneau today tabled in the House of Commons the Budget Implementation Act, 2018, No. 1 (BIA 1), which implements a number of measures announced in Budget 2018. Today's legislation takes the next step in the Government's plan to grow and strengthen the middle class by putting more money into the pockets of those who need it most, and by making sure Canada remains the best place to invest, create jobs and do business.

As an immediate first step, BIA 1 would:

• Introduce the new Canada Workers Benefit (CWB), a simpler, more generous and more accessible benefit that would replace the Working Income Tax Benefit as of 2019. The introduction of the CWB would encourage more people to join the workforce and offer real help to more than two million Canadians who are working hard to join the middle class, including helping 300,000 Canadians get access to the benefit through auto-enrolment and lifting around 70,000 Canadians out of poverty
• Strengthen the Canada Child Benefit by indexing the benefits annually to keep pace with the rising cost of living starting in July 2018, two years earlier than originally planned. This will help families invest in the things that give children a good start in life—like a safe place to live, healthy food, music lessons or sports camps.
• Reduce the small business tax rate to 10 per cent, effective January 1, 2018, and to 9 per cent, effective January 1, 2019, allowing small business owners to keep more of their hard-earned money so that it can be reinvested to support growth and create jobs.
• Amend the Employment Insurance Act to make the current Employment Insurance (EI) Working While on Claim pilot rules permanent, and extend them to EI maternity and sickness benefits. This will allow claimants who have earnings while in receipt of benefits to keep more of their EI benefits when they need them most.
• Improve Canada's cyber security posture by consolidating the Government of Canada's cyber security expertise under one roof through the creation of the Canadian Centre for Cyber Security as part of the National Cyber Security Strategy, Canada's first comprehensive cyber security plan.
• Establish a federal carbon pollution pricing system that would apply in provinces and territories upon request, and in provinces and territories that do not have a pricing system in place that meets the federal standard by the end of 2018, to ensure that a price on carbon pollution is in place across Canada.
• Establish a federal excise duty framework for cannabis products, which would come into effect when cannabis for non-medical purposes becomes available for legal retail sale.
• Implement simplified proposals released in December 2017 to limit income sprinkling by owners of private corporations, while making sure that family members who make a meaningful contribution to the business are not affected.
• Limit the tax deferral opportunities related to passive investments held in a private corporation, while providing business owners with flexibility to build a cushion of savings for business purposes and deal with personal circumstances, such as for maternity leave, sick days or retirement.