Canadian Federal Budget 2024 Overview

Today, federal Minister of Finance Chrystia Freeland tabled Budget 2024: Fairness for Every Generation. During their weeks long, pre-budget media blitz, the federal Liberals unveiled many of their major housing commitments in advance. During their cross-country tour, Liberal Ministers announced approximately $38 billion in new financial commitments before Budget Day. It has been speculated that much of this is to attract younger voters who the Liberals are struggling to connect with.

Federal Budget Overview

The Budget projects $52.9 billion in spending, more than previous projections, over the next five years and a $40 billion deficit this fiscal year. All this new spending has consequences – it is projected that the government will spend more on servicing its debt than on health care this year.

As foreshadowed by the press tour, the focus was on housing however there are two other themes – affordability and growing the economy. Other major initiatives include a $6 billion Canada Disability Benefit and a $1 billion national school food program. The government will try to pay for some of these promises with a capital gain tax hike that will generate an estimated $19 billion in new revenue.

The budget was divided into eight chapters:

  1. More Affordable Homes
  2. Lifting Up Every Generation
  3. Lowering Everyday Costs
  4. Economic Growth – Amber
  5. Safer Healthier Communities
  6. A Fair Future for Indigenous People – Sarah
  7. Protecting Canadians
  8. Tax Fairness

Chapter 1: More Affordable Homes

Budget 2024 and Canada’s Housing Plan lay out the government’s strategy to unlock 3.87 million new homes by 2031, which includes a minimum of 2 million net new homes on top of the 1.87 million homes expected to be built anyway by 2031. Of the 2 million net new homes, it is estimated that the policy actions taken in Budget 2024, Canada’s Housing Plan, and in fall 2023 would support a minimum of 1.2 million net new homes.

 

Solving a Housing Crisis

Budget 2024 announces new action to support renters and lower the costs of homeownership.

  • For renters, new action will help protect them from unfair practices like steep rent increases and renovictions and unlock new pathways for them to become homeowners, including ensuring they get credit for rental payments.
  • For first-time homebuyers, new support will make it easier to save for their down payment faster and get their first mortgage.
  • And, existing homeowners with mortgages will benefit from new protections from rising payments through the strengthened Canadian Mortgage Charter.

 

Building Homes on Public Land:

To ensure every Canadian has a safe and affordable place to call home, the government will transform its approach to federally owned land and lead a national, Team Canada effort to unlock public lands for housing. To get this done, Budget 2024 announces:

  • The federal government will use all tools available to convert public lands to housing, including leasing, acquiring other public lands for housing, and retaining ownership, whenever possible. Keeping land under public ownership and leasing it to builders—instead of selling to the highest bidder—will enable new homes to be affordable, forever. This effort will help housing providers avoid unnecessary upfront capital costs, allowing them to build more affordable housing, all while strengthening the federal government’s balance sheet to unlock more homes.
  • The federal government is conducting a rapid review of its entire federal lands portfolio to identify more land for housing. As part of this effort, the government will:
    • Review the entire portfolio of federally owned land and properties to rapidly identify sites where new homes can be built;
    • Require departments and agencies to offer up specific parcels of land according to specified targets; ­
    • Consult with municipal, provincial, and private sector partners to identify the most promising lands to be made available for housing; ­ Publish a new Public Land Bank, encompassing an inventory of available lands, before fall 2024 to accelerate construction on public lands; ­
    • Release a new geo-spatial mapping tool to help homebuilders more easily access and navigate public lands; and, 
    • Introduce legislation, as required, to facilitate the acquisition and use of public lands for homes, in partnership with other orders of government.
  • Budget 2024 proposes to provide $5 million over three years, starting in 2024-25, to support an overhaul of the Canada Lands Company to expand its activities to build more homes on public lands. These reforms will seek to:
    • Cut approval times in half, while abiding by constitutional obligations; ­ Initiate redevelopment processes early;
    • Bundle multiple properties to be transferred at once; ­
    • Provide leases, including long-term, low-cost leases, for housing providers; ­ Transform underused government offices into multi-use properties; ­
    • Transfer land from the federal government to Canada Lands Company for $1, whenever possible, to support more affordable housing; ­
    • Enable housing development on actively used federal properties; and,
    • Work with Crown corporations to redevelop their surplus, underutilized, or actively used properties for housing.
  • In addition to partnering with homebuilders, not-for-profits, and co-ops on federal sites, the federal government will partner with provinces, territories, and municipalities to unlock more public lands to build more homes. While the federal government owns a large portfolio of land, other orders of government can and should also contribute to this national effort by leveraging their own public land portfolios. Building on these sites can be done efficiently as existing infrastructure is already in place, such as transit, schools, roads, water, electricity, and parks.
  • To support this effort and expand the federal government’s land portfolio to build more homes, Budget 2024 proposes to provide:
    • $500 million over five years, starting in 2024-25, on a cash basis, to Public Services and Procurement Canada to launch a new Public Lands Acquisition Fund, which will purchase land from other orders of government to help spur sustainable, mixed-market housing.
    • $112.6 million over five years, starting in 2024-25, and $4.3 million in future years, for the Canada Mortgage and Housing Corporation to top up the Federal Lands Initiative to unlock more federal lands for affordable housing providers. This investment, which is expected to unlock a minimum of 1,500 homes, including 600 affordable homes, will also prioritize new approaches, such as leasing, to make federal lands available to affordable housing providers;
    • $20 million over five years, starting in 2024-25, for Public Services and Procurement Canada to scale-up its centre of expertise on public lands; and,
    • $15 million over five years, starting in 2024-25, for Public Services and Procurement Canada to work with Infrastructure Canada on delivering the new Public Land Bank and geo-spatial mapping tool.
  • To move forward immediately on its Public Lands for Homes Plan, the government is announcing today that it is urgently unlocking five federal properties that will be leased to housing providers to build over 800 new homes. These are:
    • Nearly 100 homes at Currie in Calgary, Alberta;
    • Nearly 500 homes at Wateridge Village in Ottawa, Ontario; ­
    • Over 40 homes at the Village at Griesbach in Edmonton, Alberta; ­
    • 100 homes at Arbo Neighbourhood in Toronto, Ontario; and, ­
    • Over 100 homes at 3155 Chemin de la Côte-de-Liesse in Montréal, Quebec.
  • In addition, Budget 2024 proposes to provide $4 million over two years, starting in 2024-25, for Canada Lands Company to support new modular housing projects on four sites:
    • Shannon Park, Dartmouth, Nova Scotia; ­
    • Village at Griesbach, Edmonton, Alberta; ­
    • Downsview, Toronto, Ontario; and, ­
    • Wellington Basin, Montréal, Quebec.
  • The federal government will launch a new Public Lands Action Council this spring to spur collaboration and equip all players with the tools they need to build homes on public lands.
    • The Public Lands Action Council will bring all players together to identify specific parcels of land across Canada with high potential for housing and take concerted action to accelerate construction on these lands. This group will also help shape the federal government’s approach to building homes on public lands, including the design of the Public Lands Acquisition Fund.
    • To support this work, Budget 2024 proposes to provide $1.8 million over two years, starting in 2024-25, for the Privy Council Office to create a Public Lands Action Council Secretariat.

 

Building Homes on Canada Post Properties

Canada Post manages a large portfolio of land, including more than 1,700 post offices, in over 1,700 communities across the country. Many of these sites often house one-storey Canada Post buildings, which could be leveraged to build new homes across the country while maintaining Canada Post services.

  • As part of its work to build homes on public lands, Budget 2024 announces that the government will take steps to enable Canada Post to prioritize leasing or divestment of post office properties and lands with high potential for housing, where doing so maintains high service standards for Canadians.
  • Budget 2024 also announces the government’s intention to launch a new Canada Post Housing Program to support affordable housing providers to build on disposed or leased Canada Post properties. Details will be available later this year.

 

Building Homes on National Defence Lands

National Defence owns 622 properties across every province and territory, totalling 2.2 million hectares, in addition to providing housing to many members of the Canadian Armed Forces. Many of these National Defence properties in cities and communities across Canada are not fully utilized and could be unlocked to build more homes for Canadian Armed Forces members, and civilians, to live in.

  • As part of its work to build homes on public lands, Budget 2024 announces that the government is exploring the redevelopment of National Defence properties in Halifax, Toronto, and Victoria that could be suitable for both military and civilian uses.
  • Budget 2024 also announces that the Department of National Defence is working with Canada Lands Company and other partners to divest 14 surplus properties that have potential for housing, and are not needed for National Defence operations.
  • Budget 2024 also proposes additional investments for the Department of National Defence to build and renovate housing for CAF personnel on bases across Canada. This would support the construction of up to 1,400 new homes and the renovation of an additional 2,500 existing units for CAF members on base in communities such as Esquimalt, Edmonton, Borden, Trenton, Kingston, Petawawa, Ottawa, Valcartier, and Gagetown.

 

Converting Unused Federal Offices into Homes

Sparked by the pandemic, like many organizations in Canada and around the world, the federal government shifted to hybrid work. Today, Public Services and Procurement Canada has over 6 million square metres of office space, of which an estimated 50 percent is underused or entirely vacant. This is not an effective use of resources, particularly at a time when Canada is facing a shortage of homes. The federal government is moving forward with a significant disposal effort to reduce its office footprint. This would enable more office buildings, particularly in urban areas, to be converted into homes for Canadians, while also ensuring the responsible use of government resources.

  • Budget 2024 proposes to provide $1.1 billion over ten years, starting in 2024-25, to Public Services and Procurement Canada to reduce its office portfolio by 50 percent. This funding, which is expected to be fully recovered through substantial short- and long-term cost savings, will help to accelerate the ending of leases and disposal of underused federal properties and address deferred maintenance. Where applicable, the government will prioritize student and non-market housing in the unlocking of federal office properties.
  • Reducing the federal office footprint will generate substantial savings, expected to reach $3.9 billion over the next ten years, and $0.9 billion per year ongoing.

 

Taxing Vacant Lands to Incentivize Construction

  • Budget 2024 announces that the government will consider introducing a new tax on residentially zoned vacant land. The government will launch consultations later this year.

 

Building Apartments, Bringing Rent Down

Building rental homes requires significant investment, even more so when interest rates and land prices are high, as in recent years. Access to low-cost financing can help homebuilders move a rental project from being financially unfeasible to feasible. To help more apartment buildings break ground, the government is investing heavily in its low-cost construction financing programs, ensuring homebuilders have the financing needed to keep building.

  • To build more rental apartments, faster, Budget 2024 announces an additional $15 billion in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program, bringing the program’s total to over $55 billion. This investment will help build more than 30,000 additional new homes across Canada, bringing the program’s total contribution to over 131,000 new homes supported by 2031-32.
    • Of this amount, at least $100 million will be used to build homes above existing shops and businesses, especially in big cities where land is scarce and where density is key.
  • To increase access to the program and make it easier for builders to build, Budget 2024 announces new reforms to the Apartment Construction Loan Program. These reforms include:
    • Extending the terms of the loans offered; ­
    • Extending access to financing to include housing projects for students and seniors; ­
    • Introducing a portfolio approach so builders can move forward on multiple projects at once; ­
    • Providing additional flexibility on affordability, energy efficiency, and accessibility requirements; and, ­
    • Launching a new frequent builder stream to fast-track the application process for proven home builders.

 

Launching Canada Builds

To build homes across the country, we need a Team Canada approach. Provinces and territories control a number of critical levers to unlocking more housing supply, such as zoning rules, development approvals, lands and land use planning, rules for tenants and landlords and the adoption of building codes and regulations.

  • Budget 2024 announces Canada Builds, the federal government’s intention to leverage its $55 billion Apartment Construction Loan Program to partner with provinces and territories to build more rental housing across the country.
  • To access federal financing, provinces and territories will be expected to meet the benchmarks set by BC Builds and deliver action to unlock even more homes. These actions include:
    • Complementing federal funds with provincial or territorial investments; ­
    • Building on government, non-profit, community-owned, and vacant lands; 
    • Considering access to early learning and child care, and the expansion of non-profit child care, in the development process; ­
    • Streamlining the process to cut development approval timelines to no longer than 12 to 18 months; and, ­
    • Meeting the criteria of the Apartment Construction Loan Program, including affordability requirements.

 

Topping Up the Housing Accelerator Fund

Building on this success, Budget 2024 proposes to provide an additional $400 million over four years, starting in 2024-25, to the Canada Housing and Mortgage Corporation, to top up the Housing Accelerator Fund. This will help fast-track 12,000 new homes in the next three years.

 

A New Canada Housing Infrastructure Fund

 Budget 2024 proposes to provide $6 billion over 10 years, starting in 2024-25, to Infrastructure Canada to launch a new Canada Housing Infrastructure Fund. The Fund will accelerate the construction and upgrading of housing-enabling water, wastewater, stormwater, and solid waste infrastructure that will directly enable new housing supply and help improve densification. This Fund will be comprised of:

  • $1 billion is available directly to municipalities to support urgent infrastructure needs that will directly enable housing supply.
  • $5 billion for agreements with provinces and territories to support long-term priorities. Provinces and territories can only access this funding if they commit to key actions that increase housing supply:
    • Legalize more housing options by adopting zoning that allows four units as-of-right and that permits more “missing middle” homes, including duplexes, triplexes, townhouses, and small multi-unit apartments;
    • Implement a three-year freeze on increasing development charges from April 2, 2024, levels for municipalities with a population greater than 300,000;
    • Adopt forthcoming changes to the National Building Code to support more accessible, affordable, and climate-friendly housing options;
    • Provide pre-approval for construction of designs included in the government’s upcoming Housing Design Catalogue; and,
    • Implement measures from the forthcoming Home Buyers’ Bill of Rights and Renters’ Bill of Rights.
    • Provinces will have until January 1, 2025, to secure an agreement, and territories will have until April 1, 2025. If a province or territory does not secure an agreement by their respective deadlines, their funding allocation will be transferred to the municipal stream. The federal government will work with territorial governments to ensure the actions in their agreements are suitable to their distinct needs.
  • To ensure this funding reaches communities of all sizes and needs, provinces must dedicate at least 20 percent of their agreement-based funding to northern, rural, and Indigenous communities.

 

Leverage Transit Funding to Build More Homes

Budget 2024 announces that any community seeking to access long-term, predictable funding through the federal government’s forthcoming permanent public transit fund will be required to take action that directly unlocks the housing supply where it is needed most by:

  • Eliminating all mandatory minimum parking requirements within 800 metres of a high-frequency transit line;
  • Allowing high-density housing within 800 metres of a high-frequency transit line; and,
  • Allowing high-density housing within 800 metres of post-secondary institutions.
  • Completing a Housing Needs Assessment for all communities with a population greater than 30,000.

 

Changing How We Build Homes

  • To spur the development of innovative housing technologies, Budget 2024 proposes $50 million over two years, beginning in 2024-25, for Next Generation Manufacturing Canada (NGen)—one of Canada’s Global Innovation Clusters—to launch a new Homebuilding Technology and Innovation Fund. NGen will seek to leverage an additional $150 million from the private sector, and other orders of government, to support a targeted $200 million investment in housing innovation in Canada. The first projects will aim to be announced this summer.
  • To scale up more innovative housing solutions, Budget 2024 proposes $50 million over two years, beginning in 2024-25, on a cash basis, through Canada’s Regional Development Agencies to support local innovative housing solutions across the country, such as designing and upscaling of modular homes, the use of 3D printing, mass timber construction, and panelized construction.
  • To help simplify the way Canada builds homes, Budget 2024 announces that the National Research Council will launch consultations with provinces, territories, industry, and fire safety experts to address regulatory barriers, including point block access and single egress designs, and streamline the inspection process. In addition, the National Research Council will identify ways to reduce duplication between factory inspections of modular home components and on-site building inspections and support efforts to address regulatory barriers to help scale up factory-built housing across the country.
  • Budget 2024 also announces that the Apartment Construction Loan Program will earmark at least $500 million to homebuilders that use innovative construction techniques, such as modular housing, for new rental projects.

 

Housing Design Catalogue

  • Budget 2024 proposes to provide $11.6 million in 2024-25 to support the development of its Housing Design Catalogue for up to 50 housing designs, such as modular housing, row housing, fourplexes, sixplexes, and accessory dwelling units, that provinces, territories, and municipalities could use to simplify and accelerate housing approvals and builds.
  • This first phase of the catalogue will be published in the fall of 2024.

 

Modernizing Housing Data

  • To help modernize housing data, Budget 2024 proposes to provide $20 million over four years, starting in 2024-25 for Statistics Canada and the Canada Mortgage and Housing Corporation to modernize and enhance the collection and dissemination of housing data, including municipal-level data on housing starts and completions.

 

Adding Additional Suites to Single-Family Homes

The government is taking action to make it easier for homeowners to increase Canada’s supply of housing by adding additional suites to their homes.

  • Budget 2024 proposes to provide $409.6 million over four years, starting in 2025-26, to the Canada Mortgage and Housing Corporation to launch a new Canada Secondary Suite Loan Program, enabling homeowners to access up to $40,000 in low-interest loans to add secondary suites to their homes. Details of this program will be announced in the coming months.
  • Budget 2024 announces the government’s intention to make targeted changes to mortgage insurance rules to encourage densification and support the efficient functioning of the housing finance market, by enabling homeowners to add more units to their homes. The government will consult stakeholders on proposed changes to regulations, including refinancing, maximum loan and home price, as well as other mortgage insurance rules where homeowners are adding additional units.

 

Accelerating Investment to Build More Apartments

Budget 2024 proposes to introduce a temporary accelerated capital cost allowance, at a rate of 10 percent for eligible new purpose-built rental projects that begin construction on or after Budget Day and are available for residents to move in before January 1, 2036.

  • Increasing the capital cost allowance rate from 4 percent to 10 percent will incentivize builders by moving projects from unfeasible to feasible, through increased after-tax returns on investment.
  • The measure does not change the total amount of depreciation expenses being deducted over time, it simply accelerates it. Allowing homebuilders to deduct certain depreciation expenses over a shorter period of time allows homebuilders to recover more of their costs faster, enabling further investment of their money back into new housing projects.
  • This measure would cost an estimated $1.1 billion over five years, starting in 2024-25.

 

Building More Student Housing

  • Budget 2024 announces that the eligibility conditions for the removal of GST on new student residences will be relaxed for not-for-profit universities, public colleges, and school authorities. This will incentivize Canada’s educational institutions to build more student housing by ensuring they benefit from the removal of GST on new student residences. This measure is expected to cost $19 million over five years, starting in 2024-25, and $5 million per year ongoing.
  • The relaxed eligibility will apply to new student residences that begin construction on or after September 14, 2023, and before 2031, and that complete construction before 2036. Private institutions will not be eligible for this support.
  • This measure builds on the government’s new reform to allow on- and off-campus student housing projects to access the $55 billion Apartment Construction Loan Program.

 

More Skilled Trade Workers Building Homes

  • Budget 2024 proposes to provide $100 million over two years, starting in 2024-25, to Employment and Social Development Canada for the following:
    • $90 million over two years, starting in 2024-25, for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices. Of this amount, $10 million in 2025-26 would be sourced from existing departmental resources.
    • $10 million over two years, starting in 2024-25, for the Skilled Trades Awareness and Readiness Program to encourage Canadians to explore and prepare for careers in the skilled trades. This funding would be sourced from existing departmental resources.
  • To make it easier for young people who hope to start a career in the skilled trades, in addition to interest-free Canada Apprentice Loan and Employment Insurance Regular Benefits for apprentices on full-time technical training, the government will continue to explore options to make apprenticeships more affordable.
  • Further investments to build Canada’s residential construction workforce, such as the recently launched Sustainable Jobs Training Fund, will help young workers gain the specialized skills needed to retrofit homes to increase energy efficiency and lower the costs of homeownership.

 

Recognizing Foreign Construction Credentials and Improving Labour Mobility

  • Budget 2024 proposes to provide $50 million over two years, starting in 2024-25, to Employment and Social Development Canada for the Foreign Credential Recognition Program. At least half of this amount will be to streamline foreign credential recognition in the construction sector to help skilled trades workers build more homes, and the remaining funding will support foreign credential recognition in the health sector. Similar to a recent agreement between federal, provincial and territorial health ministers to recognize foreign credentials for healthcare professionals, the federal government is calling on provinces and territories to expedite the removal of their barriers to foreign credential recognition.
  • To reduce internal barriers for skilled workers in Canada, the federal government is also calling for provinces and territories to urgently streamline their trades certification standards for interprovincial consistency. This includes streamlining requirements in trades, or sub-trades, that have no or limited equivalents in other jurisdictions.
  • The federal government will continue to collaborate with provincial and territorial apprenticeship authorities to improve labour mobility for workers in these trades.

 

Credit for Paying Rent

In Budget 2024, the government is setting a firm expectation with lenders, through its strengthened Canadian Mortgage Charter, to take a renter’s on-time payment history into account when performing credit evaluations for mortgage applications.

  • Budget 2024 announces that the government is calling on banks, fintechs, and credit bureaus to prioritize launching tools to allow renters to opt-in to reporting their rent payment history to credit bureaus, to strengthen their credit scores and unlock pathways for more renters to become homeowners.

 

Protecting Renters’ Rights

  • Budget 2024 proposes to provide $15 million over five years, starting in 2024-25, for a new Tenant Protection Fund, which will provide funding to organizations that provide legal and informational services to tenants, as well as for tenants’ rights advocacy organizations to raise awareness of renters’ rights.
  • Budget 2024 also proposes a new Canadian Renters’ Bill of Rights, to be developed and implemented in partnership with provinces and territories, to protect renters from unfair practices, make leases simpler, and increase price transparency. The government intends to crack down on renovations, introduce a nationwide standard lease agreement, and require landlords to disclose historical rent prices of apartments.

 

30-Year Amortization Periods for First-Time Buyers Purchasing New Builds

  • Budget 2024 announces the government is strengthening the Canadian Mortgage Charter to allow 30-year mortgage amortizations for first-time home buyers purchasing newly constructed homes. Extending the amortization limits by five years for first-time buyers purchasing new builds will enable more younger Canadians to afford a mortgage and will encourage new supply. This new insured mortgage product will be available to first-time buyers starting August 1, 2024. The government will bring forward regulatory amendments to implement this proposal. Further details will be released in the coming months.
  • The government will monitor whether housing inflation and supply conditions permit expanding access to 30-year insured mortgage amortizations more broadly.

 

Enhancing the Home Buyers’ Plan

  • Budget 2024 announces the government’s intention to amend the Income Tax Act to increase the Home Buyers’ Plan withdrawal limit from $35,000 to $60,000, enabling first-time home buyers to use the tax benefits of an RRSP to save up to $25,000 more for their down payment, faster. The newly increased limit would be available to first-time buyers after April 16, 2024.
  • Budget 2024 also announces the government’s intention to amend the Income Tax Act to temporarily extend the grace period during which homeowners are not required to repay their Home Buyers’ Plan withdrawals to their RRSP by an additional three years. This grace period extension would apply to Home Buyers’ Plan participants who made a first withdrawal between January 1, 2022, and December 31, 2025, who will now only have to begin repaying their Home Buyers’ Plan withdrawals in the fifth year after the year in which they withdraw. For a couple who withdrew the maximum in 2023, extending the grace period could allow them to defer annual repayments as large as $4,667 by an additional three years.

 

Enhancing the Canadian Mortgage Charter

  • Budget 2024 announces that the government is enhancing the Canadian Mortgage Charter to provide further support to Canadians facing mortgage hardship. These enhancements include:
    • Using rent payment history for mortgage applications, to help more renters become homeowners by improving their credit score;
    • Up to 30-year mortgage amortizations for first-time home buyers purchasing new builds, to make it easier to afford a first mortgage; and,
    • More detailed expectations for lenders to proactively contact borrowers, including making permanent mortgage relief measures available, where appropriate; and providing information to help borrowers make informed decisions, such as before renewal.

 

Halal Mortgages

Budget 2024 announces that the government is exploring new measures to expand access to alternative financing products, like halal mortgages. This could include changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place.

 

Strengthening Mortgage Income Verification

Budget 2024 announces the government’s intention to consult with the mortgage industry on making available a tool through the Canada Revenue Agency to complement the existing strategies of financial institutions to verify borrower income for mortgages.

 

Cracking Down on Real-Estate Fraud

Budget 2024 proposes to provide $73.1 million over five years, starting in 2024-25, and $14.7 million per year ongoing to the Canada Revenue Agency to continue addressing tax non-compliance in real estate transactions. By ensuring that everyone pays their fair share, the government is protecting home buyers from artificial market distortions that increase home prices.

 

Confronting the Financialization of Housing

Budget 2024 announces that the government intends to restrict the purchase and acquisition of existing single-family homes by very large, corporate investors. The government will consult in the coming months and provide further details in the 2024 Fall Economic Statement.

 

Helping Canadians Who Can’t Afford a Home

Budget 2024 will invest to increase the amount of affordable housing in Canada so we can restore what was lost over the past few decades, and help bring chronic homelessness in Canadian communities to an end.

 

Enhancing the Affordable Housing Fund

To build and maintain more affordable housing, Budget 2024 proposes to provide $976 million over five years, starting in 2024-25, and $24 million in future years, to the Canada Mortgage and Housing Corporation to launch a new Rapid Housing stream under the Affordable Housing Fund to build deeply affordable housing, supportive housing, and shelters for our most vulnerable.

 

Protecting and Expanding Affordable Housing

  • Budget 2024 proposes $477.2 million over five years, starting in 2024-25, and $147.8 million in future years, to launch a new $1.5 billion Canada Rental Protection Fund, to be administered by the Canada Mortgage and Housing Corporation, to protect the stock of affordable housing in Canada. The Fund will provide $1 billion in loans and $470 million in contributions to support affordable housing providers to acquire units and preserve rents at a stable level for decades to come, preventing those units from being redeveloped into out-of-reach condos or luxury rental units.
    • This new Fund will be co-led and co-funded by the federal government and other partners.
    • This program will help mobilize investments and financing from the charitable sector, private sector, and other orders of government.

 

Keeping Non-Profit and Co-op Homes Affordable

Budget 2024 announces the government’s intention to introduce flexibilities to the Federal Community Housing Initiative to ensure that eligible housing providers can access funding to maintain housing affordability for low-income tenants and co-op members.

 

Lower Energy Bills for Renters and Homeowners

Budget 2024 proposes to provide $903.5 million over six years, starting in 2024-25, to Natural Resources Canada as follows:

  • $800 million over five years, starting in 2025-26, to launch a new Canada Greener Homes Affordability Program that will support the direct installation of energy efficiency retrofits for Canadian households with low- to median incomes. This program represents the next phase of the Canada Greener Homes Initiative and will be co-delivered with provincial and territorial partners. It will also be complemented by CMHC’s Greener Homes Loan program, which provides interest-free loans of up to $40,000 for energy-efficiency home retrofits.
  • $73.5 million over five years, starting in 2024-25, to renew and modernize existing energy efficiency programs that offer tools to building owners like the ISO 50001 Energy Management Systems Standard and the ENERGY STAR Portfolio Manager. This funding will also spur the development of better, more ambitious building codes to further reduce emissions and lower energy bills. The federal government will encourage provinces and territories to adopt these top-tier building codes.
  • $30 million over five years, starting in 2024-25, to continue developing a national approach to home energy labelling, which will empower prospective home buyers with information about the energy efficiency of their new home, with the support of energy auditors.
    • Natural Resources Canada will announce further details on the Canada Green Buildings Strategy in the coming weeks.

 

Building Homes in Indigenous Communities

Access to safe and affordable housing is critical to improving socio-economic outcomes and ensuring a better future for Indigenous communities. Since 2015 the federal government has committed more than $6.7 billion to support housing in Indigenous communities and a further $4.3 billion to advance an Urban, Rural, and Northern Indigenous Housing strategy set to launch in 2024- 25. As outlined in Chapter 6, Budget 2024 also proposes additional investments to support housing and enabling infrastructure needs in First Nations, Inuit, and Métis communities.

 

Sheltering Asylum Claimants

Budget 2024 proposes to provide $1.1 billion over three years, starting in 2024-25, to Immigration, Refugees and Citizenship Canada to extend the Interim Housing Assistance Program. Funding in 2026-27 will be conditional on provincial and municipal investments in permanent transitional housing solutions for asylum claimants.

Chapter 2: Lifting Up Every Generation

  • Budget 2024 proposes to provide $77.1 million over four years, starting in 2025-26, to more effectively integrate internationally educated health care professionals into Canada’s health workforce by creating 120 specific training positions, increasing assessment capacity and providing support to navigate credential recognition systems.
  • Launching a new Canada Disability Benefit with $6.1 billion over six years, and $1.4 billion ongoing, to supplement provincial and territorial benefits, increasing the financial well-being of over 600,000 working-age persons with disabilities. Budget 2024 also addresses barriers to accessing the Canada Disability Benefit by covering the cost of the medical forms required to apply for the Disability Tax Credit.
  • Launching a new National School Food Program by providing $1 billion over five years to work with provinces, territories, and Indigenous partners to expand access to school food programs to more than 400,000 kids.
  • Launching a $1 billion Child Care Expansion Loan Program to build more child care spaces and renovate existing child care centres, to save more families thousands of dollars a year on child care, enable more parents—especially moms—to pursue a career, and give every child the best start.
  • Extending increased student grants and interest-free loans, at an estimated total cost of $1.1 billion this year. With $38.4 billion in up-front grants and interest-free loans, we have already helped 638,000 low- and middle-income students every year, on average, since 2016 to pursue their education, regardless of their background. However, many students still need more support to cover rising costs—and the federal government is increasing its support to ensure every generation can reach their full potential.
  • Enhancing the Canada Pension Plan and ensuring the stability and security of Canadian’s pension benefits for generations to come. The CPP provides an average of more than $8,400 every year to nearly 6 million retirees.
  • CanCode is a federal program that has helped over 4.5 million students—from kindergarten through grade 12—to develop coding and digital skills, priming kids for success in science, technology, engineering, and mathematics. CanCode’s programming has equipped over 200,000 teachers with the tools they need to help their students learn to code. Budget 2024 proposes to provide $39.2 million over two years, starting in 2024-25, to Innovation, Science and Economic Development Canada to advance the next phase of CanCode.

Chapter 3: Lowering Everyday Costs

  • As part of the government’s work to end food insecurity, Budget 2024 proposes to provide $62.9 million over three years, starting in 2024-25, to renew and expand the Local Food Infrastructure Fund to support community organizations across Canada to invest in local food infrastructure, with priority to be given to Indigenous and Black communities, along with other equity-deserving groups. Part of the expansion will support community organizations to improve infrastructure for school food programs as a complement to the National School Food Program.
  • Budget 2024 announces the government will launch consultations this June on interoperability so that farmers can use their equipment in the way that is best for their farms. This is part of broader work the government is undertaking to support the right to repair and interoperability. Budget 2024 also announces the federal government is calling on provinces and territories to amend their contract laws to support interoperability while commending the progress of Quebec on their work to support consumer protection, including for farmers.
  • Budget 2024 proposes to provide $64 million in 2024-25 to Agriculture and Agri-Food Canada to support a $250,000 interest-free limit on Advance Payments Program loans for the 2024 program year. The government will continue to review the Advance Payments Program to improve program delivery and reduce the administrative burden for producers.
  • Budget 2024 announces the government’s intention to amend the Telecommunications Act to better allow Canadians to renew or switch between home internet, home phone, and cell phone plans: ­ Carriers will be prohibited by the CRTC from charging consumers extra fees to switch carriers. ­ Carriers will be required to help consumers identify plans, which may include lower-cost plans, in advance of the end of a contract. ­ Carriers will also be required to provide a self-service option, such as an online portal, for customers to easily switch between or end plans with a provider.
  • Enhancing free and affordable bank account options and capping non-sufficient funds fees charged by banks at $10.
  • Budget 2024 proposes a Sectoral Table on the Care Economy that will consult and provide recommendations to the federal government on concrete actions to better support the care economy, including with regard to early learning and child care.
  • Budget 2024 announces the government’s intention to launch consultations on the development of a National Caregiving Strategy.

Chapter 4: Economic Growth and Productivity

  • To secure Canada’s AI advantage Budget 2024 announces a monumental increase in targeted AI support of $2.4 billion, including:
    • $2 billion over five years, starting in 2024-25, to launch a new AI Compute Access Fund and Canadian AI Sovereign Compute Strategy, to help Canadian researchers, start-ups, and scale-up businesses access the computational power they need to compete and help catalyze the development of Canadian-owned and located AI infrastructure.
    • $200 million over five years, starting in 2024-25, to boost AI start-ups to bring new technologies to market, and accelerate AI adoption in critical sectors, such as agriculture, clean technology, health care, and manufacturing. This support will be delivered through Canada’s Regional Development Agencies.
    • $100 million over five years, starting in 2024-25, for the National Research Council’s AI Assist Program to help Canadian small- and medium-sized businesses and innovators build and deploy new AI solutions, potentially in coordination with major firms, to increase productivity across the country.
    • $50 million over four years, starting in 2025-26, to support workers who may be impacted by AI, such as creative industries. This support will be delivered through the Sectoral Workforce Solutions Program, which will provide new skills training for workers in potentially disrupted sectors and communities.
  • Budget 2024 proposes to provide $50 million over five years, starting in 2024-25, to create an AI Safety Institute of Canada to ensure the safe development and deployment of AI. The AI Safety Institute will help Canada better understand and protect against the risks of advanced and generative AI systems. The government will engage with stakeholders and international partners with competitive AI policies to inform the final design and stand-up of the AI Safety Institute.
  • Budget 2024 also proposes to provide $5.1 million in 2025-26 to equip the AI and Data Commissioner Office with the necessary resources to begin enforcing the proposed Artificial Intelligence and Data Act.
  • Budget 2024 proposes $3.5 million over two years, starting in 2024-25, to advance Canada’s leadership role with the Global Partnership on Artificial Intelligence, securing Canada’s leadership on the global stage when it comes to advancing the responsible development, governance, and use of AI technologies internationally.
  • Enhancing Research Support and Federal Research Grants, with $3.5 billion in new strategic research infrastructure and federal research support, including investments in modern, high-quality research facilities and infrastructure, which are essential for breakthroughs in Canadian research and science. This also includes $2.4 billion for core research grants and to foster homegrown, top-tier research talent by streamlining and enhancing scholarships and fellowships through Canada’s research granting councils. Boosting research support will ensure our industries and businesses can hire the talent they need to increase productivity and remain on the cutting edge.
  • Modernizing the Scientific Research & Experimental Developmenttax incentives and further capitalizing the program with $600 million over four years, and $150 million per year ongoing, to boost research and innovation.
  • Budget 2024 proposes to provide $600 million over four years, starting in 2025-26, with $150 million per year ongoing for future enhancements to the SR&ED program. The second phase of consultations will inform how this funding could be targeted to boost research and innovation.
  • $176 million over five years, starting in 2025-26, to CANARIE, a national not-for-profit organization that manages Canada’s ultra high-speed network to connect researchers, educators, and innovators, including through eduroam. With network speeds hundreds of times faster, and more secure, than conventional home and office networks, this investment will ensure this critical infrastructure can connect researchers across Canada’s world-leading post-secondary institutions.

 

Strengthening Investment and Business Growth 

  • Delivering, by the end of this year, major economic investment tax credits to attract private investment, create more jobs, and drive Canada’s economy towards net zero by 2050. Budget 2024 also announces expanded eligibility for the Clean Technology Manufacturing investment tax credit, allowing more businesses to benefit.
  • A new Electric Vehicle (EV) Supply Chain investment tax creditto support the EV supply chain and secure the future of Canada’s automotive industry.
  • Growing Canada’s biofuels sector, to help decarbonize heavy industry and heavy transportation, such as marine, aviation, and rail.
  • Getting projects built faster by announcing a suite of measures to improve the regulatory and permitting processes, focused on clarifying and reducing timelines, working towards “one project one review”, and improving engagement and partnerships, including with Indigenous partners.
  • The design and implementation details of the Clean Electricity investment tax credit with the following design features: ­ A 15 percent refundable tax credit rate for eligible investments in new equipment or refurbishments related to:
    • Low-emitting electricity generation systems using energy from wind, solar, water, geothermal, waste biomass, nuclear, or natural gas with carbon capture and storage;
    • Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries and pumped hydroelectric storage.
    • Transmission of electricity between provinces and territories.

 

Helping Businesses Grow

  • Introducing an Accelerated Capital Cost Allowance for innovation-enabling and productivity-enhancing assets, such as computers and data network infrastructure. By providing businesses with enhanced write-offs for their investments, they will be able to increase their cashflow, create more jobs, and make their businesses more productive and innovative.
  • The new Canadian Entrepreneurs’ Incentive to provide a tax break for entrepreneurs, ensuring they benefit from the fruits of their hard work while facing lower tax burdens.
  • Encouraging Canadian Pension Funds to Invest in Canada, through a working group led by Stephen Poloz (former Governor of the Bank of Canada), and supported by the Deputy Prime Minister and Minister of Finance. The working group will focus on growing Canadians’ pension savings, spurring innovation, and driving economic growth in areas including digital infrastructure and AI, physical infrastructure, building homes on public lands, and removing the 30 percent rule for domestic investments.
  • Putting the capital of financial Crown corporations to work more efficiently and ensuring they better address market gaps by taking on more risk, including additional support for new and high-growth businesses, emerging sectors, and under-financed equity-deserving groups.

 

Cutting Red Tape to Boost Innovation and Business Growth

  • Foreign Credential Recognition for health care professionals, to unlock the full potential of everyone in Canada to practice in the career for which they are already qualified. There are an estimated 198,000 internationally educated health professionals employed in Canada, but only 58 percent—114,000 workers—have employment in their chosen field. Red tape is holding back tens of thousands of doctors, nurses, and other health care professionals—and the federal government is investing to create 120 specific training positions, increase assessment capacity, and provide support to navigate credential recognition systems.
  • Foreign Credential Recognition for construction workers, with an investment of $50 million to streamline the Foreign Credential Recognition Program, which has already helped over 9,000 skilled newcomers receive work placements, and another 20,000 workers receive low-cost loans to minimize the cost of practicing their trade in Canada. This will help ensure everyone in Canada who has the skills needed to build more homes can do so. The federal government is calling on provinces and territories to urgently streamline their trades certification standards for interprovincial consistency.

Chapter 5 Safer, Healthier Communities

  • Cracking down on auto theft with a robust plan to make it harder to steal vehicles and to export stolen vehicles and moving forward with additional penalties under the Criminal Code for those who commit an auto-theft-related offence.
  • Combatting hate so that together, we can build a fairer, safer Canada for every generation.
    • Proposing $273.6 million for Canada’s Action Plan on Combatting Hate to support community outreach and law enforcement reform, tackle the rise in hate crimes, enhance community security, counter-radicalization, and increase support for victims.
    • Proposing $7.3 million to address the rise in Antisemitism.
    • Proposing $7.3 million to address the rise in Islamophobia.
  • Keeping our streets safe by taking assault weapons off our streets with a proposed investment of $30.4 million for the buyback of assault-style firearms, sourced from existing departmental resources.
  • Supporting Canadians in their access to justice with $440 million towards access to legal aid in the criminal justice system.
  • Keeping our children safe by protecting them from online harm and supporting Kids Help Phone.
  • Budget 2024 proposes to provide $6.9 million over five years, starting in 2024-25, with $1.4 million ongoing for the Meteorological Service of Canada’s early warning system for extreme weather events, with a focus on floods and storm surges.
  • Budget 2024 proposes to provide $607.9 million over two years, starting in 2024-25, to Transport Canada to top-up the Incentives for Zero-Emission Vehicles program.
  • Budget 2024 proposes to provide $190.9 million over five years, starting in 2024-25, with $0.1 million in remaining amortization, to Health Canada and Environment and Climate Change Canada to reduce human and environmental exposure to harmful chemicals.
  • Budget 2024 also announces the government will begin work this year to enhance the Chemical Management Plan’s existing cost recovery framework, ensuring big industry pays its fair share, to protect Canadians and the environment.

 

Infrastructure and Transportation

  • Budget 2024 announces the government’s intent to introduce legislative amendments to make VIA HFR-VIA TGF Inc. an Agent of the Crown, enabling it to deliver high-frequency rail on behalf of the government.
  • Budget 2024 also proposes to provide $371.8 million over six years, starting in 2024-25, to VIA HFR-VIA TGF Inc. and Infrastructure Canada to advance the design and development of high-frequency rail.
  • Budget 2024 proposes to provide $500 million over five years, starting in 2024-25, to Infrastructure Canada to support more projects through the Green and Inclusive Community Buildings program.

 

Health and Safety

  • Budget 2024 proposes to provide $52 million over five years, starting in 2024-25, with $2.1 million in remaining amortization, to Canadian Heritage and the Royal Canadian Mounted Police to protect children, and all Canadians, by subjecting large online platforms to a duty to act responsibly.
  • This ensures that the platforms are reducing a user’s exposure to harmful content online and by creating a Digital Safety Commission to ensure this duty is being adequately met. The government will also establish a Digital Safety Ombudsperson to be a resource and advocate for users and victims of online harm.
  • Budget 2024 also proposes to provide $2.5 million in 2024-25 to Public Safety Canada to support the important work of the Canadian Centre for Child Protection in preventing and responding to online child sexual exploitation, of which $1.5 million will be sourced from existing resources.
  • Budget 2024 proposes to provide $150 million over three years, starting in 2024-25, to Health Canada for an Emergency Treatment Fund, open to municipalities and Indigenous communities to help provide rapid responses to emergent, critical needs related to the opioid crisis.

Chapter 6: A Fair Future for Indigenous Peoples

In the 2024 federal budget’s Chapter 6, significant initiatives and investments for Indigenous Peoples include:

Investing in a Brighter Future for Indigenous Peoples

  • Post-Secondary Education: Budget 2024 invests nearly $243 million to support the next generation of First Nations university, college, and post-secondary students. This funding builds upon the $487.5 million allocated over ten years for Inuit and Métis post-secondary education strategies through Budget 2019.
  • Support for Indigenous Children and Families: Budget 2024 allocates $1.8 billion over 11 years to support Indigenous communities in exercising jurisdiction under An Act respecting First Nations, Inuit and Métis children, youth, and families. Another $167.5 million over two years is proposed to ensure Inuit children can access necessary health, social, and educational services.
  • To address the legacies of colonialism and racism, the budget allocates $225 million over five years for Indigenous languages and cultures programs, including initiatives under the Indigenous Languages Act. An additional $65 million over five years is proposed to support the Indigenous Screen Office. Urban Indigenous Peoples receive support through $60 million over two years for Friendship Centres, which provide culturally appropriate programs and services, including housing support, fostering community wellness and cultural connections.
  • The budget addresses the Legacy of Residential Schools with an additional investment of $96 million to support survivors, their families, and communities. It also emphasizes educating all people about these truths to ensure recognition of past wrongs and prevent their recurrence.
  • Fair Tax Jurisdiction: The budget aims to establish Fair Tax Jurisdiction for Indigenous communities by expanding opt-in frameworks. These frameworks advance self-determination, foster strong fiscal relationships, and generate crucial revenues for community priorities.
  • Section 35 Negotiations: Budget 2024 proposes allocating $96.4 million over two years, beginning in 2024-25, to Crown-Indigenous Relations and Northern Affairs Canada. This funding is intended to support rights-based discussions and ensure that Indigenous communities can actively and effectively participate in the negotiation process for reconciliation agreements.
  • Advancing Economic Reconciliation: Key actions include allocating $150 million over five years for economic opportunities, $65 million over five years for a First Nations-led land registry, and $21 million over five years to enhance participation in environmental assessments for major projects.
  • The Indigenous Loan Guarantee Program will provide up to $5 billion in loan guarantees to facilitate Indigenous communities’ access to capital. This initiative aims to enable them to participate in natural resource and energy projects in their territories on their own terms.

 

Boosting Indigenous Economic Opportunity

Allocating $388 million to boost Indigenous economic opportunity, supporting entrepreneurship, tourism, clean energy initiatives, and the Strategic Partnerships Initiative.

  • Indigenous Housing and Community Infrastructure investments totalling $918 million:
  • $426 million for First Nations on reserve.
  • $62 million for Self-Governing and Modern Treaty First Nations.
  • $370 million for Inuit communities.
  • $60 million for Métis communities.

 

Healthy Indigenous Communities

The government reaffirms its commitment to supporting Indigenous communities in building healthy and prosperous lives. Budget 2024 includes several key ongoing actions, such as:

  • Implementing an Urban, Rural, and Northern Indigenous Housing Strategy with $4 billion over seven years, starting in 2024-25.
  • Establishing a distinctions-based Indigenous Health Equity Fund with $2 billion over ten years, beginning in 2024-25, to address health care challenges and support Indigenous health priorities.
  • Providing $811 million over five years, starting in 2023-24, for medical travel and maintaining medically necessary services through the Non-Insured Health Benefits Program.
  • Renewing the First Nations Health Authority Funding Agreement in British Columbia with $8.2 billion over ten years, starting in 2023-24.
  • Ensuring access to safe drinking water and treated wastewater in First Nations communities with $1.6 billion over two years, beginning in 2024-25.

 

On-Reserve Income Assistance

The budget includes significant investments in the On-Reserve Income Assistance program funding of $927 million to assist on-reserve residents and eligible First Nations people in Yukon with daily living costs. Additionally it invests in income support programs nationwide for the first time in Canadian history, specifically for First Nations persons with disabilities, aiming to provide disability support on reserve. Additionally, eligible First Nations persons with disabilities in Yukon will receive comparable support to those off reserve.

 

First Nations and Inuit Health will see

  • $1.1 billion was invested in First Nations and Inuit Health to ensure fair and equal access to healthcare for Indigenous peoples, promoting safety and inclusivity regardless of location.
  • Over $630 million was allocated to support Indigenous mental health, improving access to services through distinctions-based mental wellness strategies.
  • $168 million was dedicated to addressing anti-Indigenous racism in healthcare, fulfilling Joyce’s Principle and combating discrimination to ensure Indigenous Peoples receive respectful and safe treatment.

 

Northern Food Security

Budget 2024 introduces enhancements to the Northern Food Security program, with an investment of $124 million. This funding aims to maintain the accessibility and affordability of nutritious foods in Northern communities through Nutrition North Canada. Additionally, it supports the Inuit Nunangat Food Security Strategy, emphasizing local food production and community food programs.

 

First Nations Emergency Management and Preparedness

Budget 2024 proposes investments to enhance emergency management and preparedness in Indigenous communities, responding to climate-related disasters. This includes:

  • $9 million in 2023-24 to aid Indigenous governments affected by the 2023 wildfires in the Northwest Territories.
  • $145.2 million over five years for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to collaborate with First Nations in enhancing climate resiliency and implementing structural mitigation strategies. This includes $10.4 million for Modern Treaty and Self-Governing First Nations.
  • $20.9 million over three years to support the First Nations Fire Protection Strategy, facilitating the distribution of fire alarms and extinguishers, as well as fire-related education programs.

 

Red Dress Alert

Building on previous commitments to address missing and murdered Indigenous women, girls, and two-spirit people, Budget 2024 proposes $1.3 million over three years to co-develop a regional Red Dress Alert system.

 

Support for Indigenous Justice Programming

Recognizing the need to address the overrepresentation of Indigenous people in the justice system, Budget 2024 proposes to allocate funds to advance the IJS including:

  • $87 million over five years, starting in 2024-25, and $11.3 million annually thereafter to the Department of Justice for Indigenous justice programming.
  • Specifically, $56.4 million over five years and $11.3 million annually for the Indigenous Justice Program and the Indigenous Courtwork Program.
  • An additional $5.5 million over three years to continue efforts in revitalizing Indigenous laws and legal systems.
  • $25.1 million over three years to renew funding for capacity building and engagement in the development and initial implementation of the Indigenous Justice Strategy.

 

First Nations and Inuit-led Policing

Budget 2024 supports First Nations and Inuit-led policing with an investment exceeding $467 million to address policing needs identified by Indigenous communities.

 

Searching the Prairie Green Landfill

Budget 2024 allocates $20 million to search the Prairie Green Landfill in Winnipeg in partnership with the Government of Manitoba, Indigenous partners, and impacted families. This initiative aims to bring closure to Indigenous families who lost loved ones.

Chapter 7: Protecting Canadians and Defending Democracy

Domestic Production and Defence

  • Around $38 billion over 20 years in the largest upgrade to NORAD in a generation, which will strengthen the defence of North America.
  • $4.4 billion over 20 years to enhance Canada’s cyber security by expanding our cyber operations capability and shoring up critical infrastructure to fend off cyber-attacks.
  • $1.8 billion over five years, starting in 2024-25, with $7.7 billion in future years, for DND to build a strategic reserve of ammunition and scale up the production of made-in-Canada artillery ammunition. Private sector beneficiaries are expected to contribute to infrastructure and retooling costs.
  • $52.5 million over five years, starting in 2024-25, with $54.8 million in future years, to DND to support start-up firms developing dual-use technologies critical to our defence via the NATO Innovation Fund.

 

Stronger National Defence

  • Budget 2024 proposes foundational investments of $8.1 billion over five years, starting in 2024-25, and $73.0 billion over 20 years to the Department of National Defence (DND), the Communications Security Establishment (CSE), and Global Affairs Canada (GAC) to ensure Canada is ready to respond to global threats and to protect the well-being of Canadian Armed Forces members. Canada’s defence spending-to-GDP ratio is expected to reach 1.76 percent by 2029-30. These include:
    • ­ $549.4 million over four years, starting in 2025-26, with $267.8 billion in future years, for DND to replace Canada’s worldwide satellite communications equipment; for new tactical helicopters, long-range missile capabilities for the Army, and airborne early warning aircraft; and for other investments to defend Canada’s sovereignty; ­
    • $1.9 billion over five years, starting in 2024-25, with $8.2 billion in future years, for DND to extend the useful life of the Halifax-class frigates and extend the service contract of the auxiliary oiler replenishment vessel, while Canada awaits delivery of next-generation naval vessels; ­
    • $1.4 billion over five years, starting in 2024-25, with $8.2 billion in future years, for DND to replenish its supplies of military equipment; ­
    • $1.8 billion over five years, starting in 2024-25, with $7.7 billion in future years, for DND to build a strategic reserve of ammunition and scale up the production of made-in-Canada artillery ammunition. Private sector beneficiaries are expected to contribute to infrastructure and retooling costs; ­
    • $941.9 million over four years, starting in 2025-26, with $16.2 billion in future years, for DND to ensure that military infrastructure can support modern equipment and operations; Protecting Canadians and Defending Democracy 307 ­ $917.4 million over five years, starting in 2024-25, with $10.9 billion in future years and $145.8 million per year ongoing, for CSE and GAC to enhance their intelligence and cyber operations programs to protect Canada’s economic security and respond to evolving national security threats; ­
    • $281.3 million over five years, starting in 2024-25, with $216 million in future years, for DND for a new electronic health record platform for military health care; ­
    • $6.9 million over four years, starting in 2025-26, with $1.4 billion in future years, for DND to build up to 1,400 new homes and renovate an additional 2,500 existing units for Canadian Armed Forces personnel on bases across Canada (see Chapter 1); ­
    • $100 million over five years, starting in 2024-25, to DND for child care services for Canadian Armed Forces personnel and their families (see Chapter 2); ­
    • $149.9 million over four years, starting in 2025-26, with $1.8 billion in future years, for DND to increase the number of civilian specialists in priority areas; and, ­
    • $52.5 million over five years, starting in 2024-25, with $54.8 million in future years, to DND to support start-up firms developing dual-use technologies critical to our defence via the NATO Innovation Fund.
  • To support Our North, Strong and Free, $156.7 million over three years, starting in 2026-27, and $537.7 million in future years would be allocated from funding previously committed to Canada’s 2017 Defence Policy, Strong, Secure, Engaged.
  • Budget 2024 also proposes additional measures to strengthen Canada’s national defence: ­
    • $1.2 billion over 20 years, starting in 2024-25, to support the ongoing procurement of critical capabilities, military equipment, and infrastructure through DND’s Capital Investment Fund;
    • and, ­ $66.5 million over five years, starting in 2024-25, with $7.4 billion in future years to DND for the Future Aircrew Training program to develop the next generation of Royal Canadian Air Force personnel. Of this amount, $66.5 million over five years, starting in 2024-25, would be sourced from existing DND resources.
  • Budget 2024 also announces reforms to Canadian defence policy and its review processes: 308 Chapter 7 ­ Committing Canada to undertake a Defence Policy Review every four years, as part of a cohesive review of the National Security Strategy; and, ­ Undertaking a review of Canada’s defence procurement system.
  • Budget 2024 proposes to provide $655.7 million over eight years, starting in 2024-25, with $191.1 million in remaining amortization, and $114.7 million ongoing to the Canadian Security Intelligence Service to enhance its intelligence capabilities, and its presence in Toronto.

 

Economic Security

  • Enable anti-money laundering and anti-terrorist financing regulatory obligations to cover factoring companies, cheque-cashing businesses and leasing and finance companies to close a loophole and level the playing field across businesses providing financial services.
  • Budget 2024 proposes to provide $10.5 million over three years, starting in 2024-25, for the Canada Border Services Agency to create a dedicated Market Watch Unit to monitor and update trade remedy measures annually, to protect Canadian workers and businesses from unfair trade practices, and ensure greater transparency and market predictability.
  • Canada will continue working with its allies to introduce incentives for businesses to reorient supply chains to trusted, reliable partners, and will ensure that any new measures do not unnecessarily harm trading partners who do not discriminate against Canadian goods and suppliers.  
  • Budget 2024 reaffirms the federal government’s commitment to introduce legislation in 2024 to eradicate forced labour from Canadian supply chains and to strengthen the import ban on goods produced with forced labour. The government will also work to ensure existing legislation fits within the overall framework to safeguard our supply chains.

Chapter 8: Tax Fairness

Budget 2024 proposes new measures that aim to make the tax system more fair and generate $21.9 billion in revenue over five years to invest in building more homes, faster, creating good-paying jobs, and incentivizing economic growth that delivers fairness for every generation.

  • Budget 2024 announces the government’s intention to increase the inclusion rate on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and trusts from one-half to two-thirds, by amending the Income Tax Act, effective June 25, 2024
  • To encourage entrepreneurship, the government is proposing the Canadian Entrepreneurs’ Incentive which will 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.
  • Budget 2024 proposes to provide $336 million over two years, starting in 2024-25, to the Canada Revenue Agency to maintain call centre resources and improve the efficiency of its call centres.
  • To establish a modern, single sign-in portal for federal government services, Budget 2024 proposes to provide $25.1 million over five years, starting in 2024-25, with $13.5 million in remaining amortization, to Employment and Social Development Canada.
  • Budget 2024 announces the government’s intention to implement the OECD-agreed Crypto-Asset Reporting Framework, including consequential amendments to the Common Reporting Standard, effective as of 2026 to permit exchanges under the new and amended reporting requirements beginning in 2027.
  • Budget 2024 proposes to provide $51.6 million over five years, starting in 2024-25, and $7.3 million per year ongoing to the Canada Revenue Agency for the implementation and administration of these initiatives.
  • Budget 2024 proposes to provide a total of $2.9 billion over five years, starting in 2024-25, on a cash basis, to Employment and Social Development Canada to migrate Old Age Security and Employment Insurance onto a secure, user-friendly platform.
  • Budget 2024 announces the government’s intention to propose legislated procurement targets for small- and medium-sized businesses and innovative firms. The government will consult with industry stakeholders, and innovation organizations, as well as evaluate international best practices in developing a proposal.
  • Budget 2024 proposes to provide $11.1 million over five years, starting in 2024-25, to the Treasury Board of Canada Secretariat to implement a whole-of-government cyber security strategy. This will help ensure the government is best equipped to combat cyber threats, and quickly and effectively resolve any vulnerabilities across digital government services.
  • Budget 2024 also proposes to provide $27 million over five years, starting in 2024-25, and $2.3 million ongoing to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to enhance its cyber resiliency and ensure the implementation of additional data security safeguards over the long-term.
  • To ensure a common understanding of cyber security best practices and identify areas for priority action to build cyber resiliency, the government also proposes to launch a data governance review of federal financial sector agencies, to be led by the Department of Finance Canada
  • Budget 2024 proposes to provide $6.7 billion over 20 years, starting in 2024-25, to Public Services and Procurement Canada in support of managing its portfolio of assets. ­ This includes support for Laboratories Canada facility upgrades, the rehabilitation of the Alaska Highway, continuing restorations within the Parliamentary Precinct, modernizing the Receiver General information technology systems that make over 300 million payments to Canadians each year, and advancing the necessary rehabilitation of the Supreme Court of Canada building.

Conclusion

The federal budget has been met with mixed reviews and criticisms across the country due to its swelling deficit. However, the budget does highlight key concerns and considerations for the various income levels across Canada.

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