The federal government recently delivered Budget 2024: Fairness for Every Generation.
It is a plan to build a Canada that works better for everyone, where younger generations can get ahead, where their hard work pays off, and where they can buy a home-where everyone has a fair chance at a good middle class life.
Today the Minister of Citizens' Services, Terry Beech, met with staff at Fuggles Brewery in Richmond, BC to highlight Budget 2024's investments in:
· A new Canadian Entrepreneurs' Incentive to reduce the inclusion rate to 33.3 per cent on a lifetime maximum of $2 million in eligible capital gains. When this incentive is fully rolled out, entrepreneurs will have a combined exemption of at least $3.25 million when selling all or part of a business.
· Empowering Young Entrepreneurs with an investment of $60 million over five years for Futurpreneur Canada, which is a national not-for-profit organization that provides young entrepreneurs with access to financing, mentorship, and other business supports to help them launch and grow their business. By 2029, Futurpreneur Canada estimates this investment will enable an estimated 6,250 additional businesses owned by young Canadians to launch and scale-up their businesses.
· Lifetime Capital Gains Exemption Increase from the current amount of $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property to $1.25 million, effective June 25, 2024. The Lifetime Capital Gains Exemption will continue to be indexed to inflation thereafter. In 2025, Canadians with eligible capital gains of below $2.25 million will be better off under these changes.
· Investing in Canadian Start-ups with $200 million over two years, starting in 2026-27, on a cash basis, to increase access to venture capital for equity-deserving entrepreneurs, and to invest in underserved communities and outside key metropolitan hubs.
· Boosting Government Procurement from Small and Medium-Sized Businesses, by announcing the government's intention to propose legislated procurement targets for small- and medium-sized businesses and innovative firms.
· Supporting Indigenous-owned Businesses by providing $350 million over five years to Indigenous Financial Institutions, including $30 million for Métis Capital Corporations.
Budget 2024 is a plan to deliver fairness for every generation.
First, the budget takes bold action to build more homes. Because the best way to make home prices more affordable is to increase supply-and quickly. It lays out a strategy to unlock 3.87 million new homes by 2031. Key measures include launching the new Public Lands for Homes Plan and Canada Rental Protection Fund, enhancing the Canadian Mortgage Charter, and creating a new Canadian Renters' Bill of Rights.
Second, it will help make life cost less. The budget builds on the government's transformative expansion of Canada's social safety net-$10-a-day child care; dental care for uninsured Canadians, the first phase of universal pharmacare-and advances the government's work to lower everyday costs for Canadians. This includes helping to stabilizing the cost of groceries, cracking down on junk fees and lowering the costs of banking. Budget 2024 also makes transformative new investments, including a National School Food Program and the Canada Disability Benefit.
Third, this year's budget will grow the economy in a way that's shared by all. The government's plan will increase investment, enhance productivity, and encourage innovation. It will create good-paying and meaningful jobs, keep Canada at the economic forefront, and deliver new support to empower more of our best entrepreneurs and innovators. This includes attracting more investment in the net-zero economy by expanding and delivering the major economic investment tax credits, securing Canada's advantage as a leader in artificial intelligence, and investing in enhanced research grants that will provide younger generations with good jobs and new opportunities. And it means ensuring Indigenous Peoples share in this growth in a way that works for them.
Budget 2024 will also make Canada's tax system fairer by asking the wealthiest to pay a bit more-so that the government can invest in prosperity for every generation, and because it would be irresponsible and unfair to pass on more debt to the next generations. Budget 2024 is a responsible economic plan that upholds the fiscal objectives outlined in the 2023 Fall Economic Statement, and sees Canada maintain the lowest deficit- and net debt-to-GDP ratios in the G7.
