Federal budget 2021
A Recovery Plan for Jobs, Growth, and Resilience
On April 19, 2021, Finance Minister Chrystia Freeland released the Liberal Government’s first federal budget in over two years (“Budget 2021”). As the title A Recovery Plan for Jobs, Growth, and Resilience suggests, Budget 2021 is largely focused on measures intended to assist Canadians and businesses in their fight against the COVID-19 pandemic and boost the creation of jobs and growth, so that a strong recovery of the economy is possible, particularly for the low- and middle-class Canadians and businesses that have suffered the most.
While there was much speculation on ways in which the government could increase revenues, please note that Budget 2021 does not propose changes to the following items:
- Personal income tax rates;
- Corporate income tax rates;
- The capital gains inclusion rate of 50%; and
- The principal residence exemption.
Some of the highlights of Budget 2021 include:
- Multi-year investment in a national early learning and child care system
- Extension of COVID-19 emergency support programs and income support for businesses and individuals
- Introduction of a new Canada Recovery Hiring Program for employers
- New national tax on vacant real estate owned by non-residents, non-Canadians
- New luxury tax
- Increased Old Age Security benefits for seniors age 75 and over
Read the full report.