It's Your Money  

Ottawa planning changes aimed at helping Canadians' pocketbooks

Federal finance plans

On Nov. 2, the federal government provided an economic statement containing several measures that will be of interest to many Canadians.

For this week’s column, I put together a summary of the key highlights of the statement:

Elimination of interest on federal student and apprenticeship loans

The federal government (government) proposes to make all Canada Student Loans and Canada Apprentice Loans permanently interest-free beginning on April 1, 2023, including those loans currently being repaid.

Extension of the residential property flipping rule to assignment sales

For properties sold on, or after, Jan. 1, 2023, the spring 2022 federal budget proposed to introduce a new deeming rule to ensure profits from residential real estate “flipping” would be fully taxable. Profits arising from the disposition of residential properties, including rental properties, that are owned for less than 12 months, would be deemed to be business income. The government proposes to extend this new deeming rule to profits from an assignment sale, if rights to purchase the property were assigned after being owned for less than 12 months.

Advance payment of the Canada Workers Benefit

The Canada Workers Benefit (CWB) is a refundable tax credit received by lower income workers when filing their income tax return after the end of the tax year. The government proposes to issue payments of the CWB in quarterly amounts starting in July 2023, in advance of filing their income tax return, to workers who qualified in the previous year.

Clean Technology Investment Tax Credit

The government proposes to introduce a refundable Clean Technology Investment Tax Credit (CTITC) equal to 20 or 30 per cent (subject to meeting certain labour conditions) of the capital cost of eligible clean technology equipment.The CTITC would be available in respect of property that is acquired and available for use on or after the day that the 2023 federal budget is released. The CTITC will be gradually phased out by the end of 2034.

There was also an update on previously proposed measures and announcements for individuals.

Following the 2022 fall economic statement, the government intends to table legislation in Parliament to implement the following previously announced measures:

Create the Tax-Free First Home Savings Account, which would give prospective first-time home buyers the ability to save up to $40,000 tax-free. Contributions to this plan would be tax-deductible, and withdrawals to purchase a first home, including investment income, would be non-taxable.

Double the First-Time Home Buyers' Tax Credit from $5,000 to $10,000, which would provide up to $1,500 in direct support to eligible first-time home buyers, starting in 2022.

Introduce a refundable Multigenerational Home Renovation Tax Credit, which would provide up to $7,500 in support for constructing a secondary suite for a family member who is a senior or an adult with a disability, starting Jan. 1, 2023. The value of the credit would be 15% of the lesser of eligible expenses or $50,000.

Please note that this list is not exhaustive and other measures from the update may also impact your financial plan. Please reach out to your financial planning professional if you have questions on how they will affect you.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

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About the Author

Brett has worked in the financial advice industry for over 15 years and is designated as a chartered investment manager(CIM) and certified financial planner (CFP).

In 2014, Brett was appointed to the board of directors of FP Canada (the national professional body for financial planning) and spent seven years on the board, including his final two as board chair. More recently, he was appointed to the Financial Planning Standards Board (FPSB), which is the international professional body for this industry with a three-year term beginning in April 2023.

Brett has been writing a weekly financial planning column since 2012 and provides his readers with easy-to-understand explanations of the complex financial challenges that they face in every stage of life.

Enhancing the financial literacy of Canadian consumers is a top priority of Brett’s and his ongoing efforts as a finance writer and on the regulatory side through the national and global boards focus on this initiative.   

Please let Brett know if you have any topics that you’d like him to cover in future columns or if you’d like a referral to a qualified CFP professional in your area by emailing him at [email protected].


The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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