2022 Federal Budget Update

Adrian Tong
Charles Wilson, Devon Huber, Garrett Louie, Kaiden McIntyre, Lawrence Tam, Stephen Zhang, Quyen Do
Insights
| 6/24/2022

On June 23, 2022, Deputy Prime Minister and Minister of Finance, Chrystia Freeland, welcomed the Royal Assent of Bill-C19, An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022, and other measures.

Crowe MacKay’s tax experts provide a brief overview of the newly approved tax legislation. If you have any questions about the announcements, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.

Trades

Personal Tax Measures

Labour Mobility Deduction for Tradespeople

The Labour Mobility Deduction for Tradespeople will allow eligible workers to deduct up to $4,000 per year of eligible expenses for the 2022 and subsequent taxation years. Find more details on worker eligibility and defined eligible expenses here.

Luxury Tax

The purchases of luxury vehicles and personal aircrafts priced over $100,000 will have the new Luxury Tax applied.  For new boats and yachts, the tax will apply to items priced over $250,000. 

Find more details on the Luxury Tax legislation in our 2021 Federal Budget Summary article.

Disability Tax Credit

The definition of ”mental functions for everyday life” is expanded under the Disability Tax Credit (DTC),  as well as the eligibility under the “life-sustaining therapy” category.

Find more details and defined eligibility for the DCT in our 2021 Federal Budget Summary article.

Charitable Disbursements

In addition to their charitable purpose, charities are allowed to provide resources to a greater range of organizations that are not qualified donees, as long as certain criteria is followed. This amendment supports Canada’s charitable sector by minimizing administrative burdens and supporting stronger partnerships through Bill S-216, the Effective and Accountable Charities Act.

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Housing Measures

Ban on Foreign Investment in Canadian Housing

There will be a restriction on foreign commercial enterprises and non-Canadian citizens or permanent residents from acquiring Canadian housing, for a period of two years effective January 1, 2023. 

Home Accessibility Tax Credit

The Home Accessibility Tax Credit provides individuals with disabilities or who are 65 years or older a non-refundable tax credit of 15% on eligible home renovations and alteration expenses of up to $20,000 (previously up to $10,000). The measures will apply to expenses incurred in the 2022 and subsequent taxation years.

GST/HST on Assignment Sales

All assignment sales of newly constructed or substantially renovated residential housing are subject to GST/HST.  The tax will apply to the full amount paid for a new home by its first occupant, with the assignor being responsible for collecting and remitting the GST/HST.

Film Production

Business Measures

Canadian Film or Video Production Tax Credit

Certain time limits relating to the Canadian Film or Video Production Tax Credit and the Film or Video Production Services Tax Credit have been extended by 12 months on certain qualified labour expenditures. Applicants must file a waiver to obtain these extensions.

Immediate Expensing of Eligible Property

Temporary immediate expensing of up to $1.5 million per taxation year is available for eligible investments made by Canadian-controlled private corporations.

Learn more about the Immediate Expensing of Eligible Property in our 2021 Federal Budget Summary article.

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Clean Energy

Rate Reduction for Zero-Emission Technology Manufacturers

The 50% reduction of the general corporate and small business income tax rates for zero-emission technologies has been extended, expanding an existing incentive for business investments in clean energy equipment. 

Find more details on the Rate Reduction for Zero-Emission Technology Manufacturers in our 2021 Federal Budget Summary article.

 

 

For more information on the above income-tax measures announced in the 2021 and 2022 budgets, see the 2021 Federal Budget Summary and 2022 Federal Budget Summary.

 

This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.


If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.

Brian Steeves
Brian Steeves
Partner
Kelowna
Garrett Louie Tax Expert
Garrett Louie
Partner, Incorporated
Vancouver
Stephen Zhang
Stephen Zhang
Partner
Edmonton
Quyen Do
Quyen Do
Partner, Incorporated
Calgary

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