Legislation to make life more affordable and build an economy that works for everyone receives Royal Assent
December 15, 2022 - Ottawa, Ontario - Department of Finance Canada
Today, Bill C-32, the Fall Economic Statement Implementation Act, 2022, received Royal Assent. With the passage of this legislation, the government is delivering on key measures from the 2022 Fall Economic Statement to help families cope with increasing costs, make housing more affordable, and strengthen and build a thriving net-zero economy with opportunities and good jobs for Canadians.
Key measures adopted in Bill C-32 to make life more affordable include:
- Permanently eliminating interest on Canada Student Loans and Canada Apprentice Loans to reduce the burden of student loans on young Canadians.
- Cutting taxes for Canada’s growing small businesses from 15 per cent to 9 per cent by more gradually phasing out their access to the small business tax rate.
- Requiring Canada’s largest financial institutions to pay their fair share by implementing the Canada Recovery Dividend, a one-time, 15 per cent tax on taxable income above $1 billion of banking and life insurer groups.
Bill C-32 also delivers key components of the government’s plan to make housing more affordable by:
- Helping young Canadians afford a down payment faster with the new Tax-Free First Home Savings Account, which will allow prospective first-time home buyers to save up to $40,000 tax-free toward their first home starting in mid-2023
- Helping Canadians save on closing costs by doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers, starting in 2022, to offset increasing closing costs involved in buying a first home.
- Helping families afford to have a grandparent or a family member with a disability move back in if they want to with a new, refundable Multigenerational Home Renovation Tax Credit of up to $7,500, starting January 1, 2023.
- Cracking down on house flipping by ensuring that profits from flipping properties held for less than 12 months are fully taxed, starting in 2023, with certain exceptions for unexpected life events (e.g. death, divorce).
And, Bill C-32 invests in jobs, growth, and an economy that works for everyone by:
- Supporting the launch of the new Canada Growth Fund, which will help bring to Canada the billions of dollars in new private investment required to reduce our emissions, grow our economy, and create good jobs at the same time.
- Securing Canada’s competitiveness by introducing a new 30 per cent Critical Mineral Exploration Tax Credit for specified mineral exploration expenses incurred in Canada.
- Eliminating flow-through shares for fossil fuel sector activities by no longer allowing oil, gas, and coal exploration and development expenditures to be renounced to a flow-through share investor.
“Our government is delivering on our plan to make life more affordable for Canadians and build an economy that works for everyone. Whether creating more good jobs for Canadians, making housing more affordable, or helping to make Canada more sustainable and more prosperous for generations to come, the Royal Assent of Bill C-32 is good news for Canadians from coast-to-coast-to-coast.”
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
- 2022 Fall Economic Statement
- Government of Canada releases 2022 Fall Economic Statement
- Government of Canada introduces legislation to make life more affordable and build and economy that works for everyone
- Budget 2022 – A Plan to Grow Our Economy and Make Life More Affordable
- Legislation to double the GST Credit for six months receives Royal Assent
- Legislation to cover dental care for children and to support low-income renters receives Royal Assent
Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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