Message From Tony
The government is committed to tax fairness for Canadians. Today, Canadians pay tax on the income from their job. But currently, they only pay taxes on 50 per cent of capital gains, which is the profit generally made when an asset, such as stocks or a rental property, is sold.
Yesterday, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, tabled a Notice of Ways and Means Motion in Parliament to deliver greater tax fairness and implement the changes in capital gains taxation announced in Budget 2024.
As of June 25, 2024, the capital gains inclusion rate—the amount of capital gains that are taxable—will increase from one-half to two-thirds on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and most types of trusts. This will make Canada’s tax system fairer and raise $19.4 billion over five years to pay for investments to build nearly 4 million new homes, to make life cost less, and to grow the economy—for every generation, particularly Millennials and Gen Z.
To ensure most middle-class Canadians and entrepreneurs do not pay more tax, the government is maintaining existing capital gains exemptions and creating new exemptions, including:
- Maintaining the Principal Residence Exemption, to ensure Canadians do not pay capital gains taxes when selling their home. Any amount you make when you sell your home will remain tax-free.
- A new $250,000 Annual Threshold for Canadians, effective June 25, 2024, to ensure individuals earning modest capital gains continue to benefit from the current one-half inclusion rate. Capital gains, including on the sale of a secondary property, such as a cottage, will be eligible for the $250,000 annual threshold, meaning a couple selling a cottage with a $500,000 capital gain would not pay more tax.
- Increasing the Lifetime Capital Gains Exemption to $1.25 million, effective June 25, 2024, from the current amount of $1,016,836 on the sale of small business shares and farming and fishing property. With this increase, Canadians with eligible capital gains below $2.25 million will pay less tax and be better off.
- A new Canadian Entrepreneurs’ Incentive, to encourage entrepreneurship by reducing the inclusion rate to one-third on a lifetime maximum of $2 million in eligible capital gains. Combined with the new $1.25 million lifetime capital gains exemption, when this incentive is fully rolled out, entrepreneurs will pay less tax and be better off on capital gains of up to $6.25 million.
The government is increasing the capital gains inclusion rate—with the above exemptions—to make Canada’s tax system fairer. Currently, wealthy individuals can face a lower marginal tax rate on their capital gains than what a middle class worker would face on their paycheque. For instance, a nurse in Ontario earning $70,000 would face a combined federal-provincial marginal tax rate of 29.7 per cent. In comparison, a wealthy individual in Ontario with $1 million of capital gains income would face a marginal tax rate of 26.8 per cent.
Commemorating Decoration Day in Newmarket
This past Sunday, I was honoured to join the Newmarket Veterans’ Association (NVA) for their 127th Annual Decoration Day Service, which commemorates the 77 local veterans who were reported missing or killed in action in the Boer War, the First World War, and the Second World War.
Last Thursday also marked the 80th anniversary of D-Day and the Battle of Normandy, which marks the day that over 14,000 Canadians stormed Juno Beach as part of the largest combined sea, air, and land military operation in history. Side by side with Allies, Canadian soldiers broke through the Nazi defences, breached the Atlantic wall, and turned the tide of the Second World War.
To all of the veterans and Canadian Armed Forces members in Newmarket-Aurora, thank you for everything that you have done and continue to do to protect our Canadian rights and values.
Enabling accessibility across Canada
At the end of May, Canada celebrated National AccessAbility Week (NAAW), which celebrated the persons with disabilities from coast to coast to coast and highlighted the work we must continue to do to increase inclusion and accessibility across the nation.
As part of NAAW 2024, Kamal Khera, the Minister of Diversity, Inclusion and Persons with Disabilities of Canada, announced three new call for proposals to help increase accessibility across Canada.
Until October 4, 2024, Canadian youth can apply for the Enabling Accessibility Fund’s (EAF) Youth Innovation component. Through this initiative, youth aged 15 to 30 can apply to become youth accessibility leaders (YALs) and can partner with a local organization or an accessibility project. These organizations or projects can receive up to $12,000 to address barriers in their community and create a more inclusive environment for all. The deadline for organizations to apply is November 1, 2024.
Under the same fund, our government has launched a call for proposals under the small projects component. Our government is investing $14.7 million to fund approximately 150 small scale construction projects that will create inclusive and accessible spaces, help persons with disabilities access good quality jobs, and help persons with disabilities fully participate and meaningfully contribute to our society and economy. Eligible projects may receive a grant of up to $125,000. The deadline to apply is July 23, 2024.
Through the Accessible Canada Fund – NAAW call for proposals, organizations can receive funding for projects that help improve understanding and knowledge among Canadians about accessibility, reduce stigma towards persons with disabilities, and share best practices learned within the disability through NAAW in 2025 and 2026. The deadline to apply is July 17, 2024.
Our government is committed to creating more inclusive and accessible spaces, fighting the stigma toward persons with disabilities, and helping persons with disabilities fully participate in society. I encourage eligible individuals and groups to apply before the deadlines.
Supporting caregivers
Caregivers from abroad are invaluable to Canadian families. Their hard work makes a difference in the lives of those they care for, including children, seniors, and persons with disabilities.
Last week, Marc Miller, Minister of Immigration, Refugees and Citizenship, announced new, enhanced caregiver pilots that will allow caregivers to continue to come to Canada. These programs will provide home care workers with permanent residence (PR) on arrival in Canada. It will also allow them to work for organizations that provide temporary or parttime care for people who are semi-independent or recovering from an injury or illness.
Candidates interested in working in Canada’s home care sector must meet the following criteria to be eligible:
- attain a minimum of level 4 based on the Canadian Language Benchmarks (CLB)
- hold the equivalent of a Canadian high school diploma
- have recent and relevant work experience
- receive an offer for a full-time home care job
These new pilot programs mark an importance step forward in Canada’s efforts to meet the evolving home care needs of its diverse population. Generations of caregivers advocated for this important pathway and have cared for our families and loved ones here in Canada. Now is the time to return the care they deserve.
World Elder Abuse Awareness Day
Elder abuse takes many forms. It includes the mistreatment, neglect, and exploitation of older adults, whether a single or repeated act. More specifically, it is any deliberate behaviour, attitude, or speech by a person in a relationship of trust that causes or is likely to cause harm or distress to an older person.
This Saturday, June 15th, Canada joins hundreds of countries worldwide to mark World Elder Abuse Awareness Day and reflect on how we can speak out against elder abuse, raise awareness, and improve the safety and well-being of seniors in our community.
Our government is proud to invest in thousands of projects from coast to coast to coast that focus on protecting and supporting the inclusion of seniors. Through the most recent New Horizons for Seniors Program (NHSP) call for proposals, nine organizations in Newmarket-Aurora received over $20,000 each to support healthy aging, prevent elder abuse, and celebrate diversity.
I encourage Canadians in Newmarket-Aurora to learn more about how we can prevent elder abuse, the signs to look out for, and how we can increase the inclusion of seniors in our community.
