Federal Budget 2022

Apr 11, 2022 | Front Page, Government News

The Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented Budget 2022 in the House of Commons on Thursday, April 7. The Budget focused on three pillars: investing in people, growing the economy under the green transition, and tackling productivity and innovation. The Budget also contained a focus on Canada’s place in the world, as well as a continued emphasis on existing government priorities such as climate change and housing affordability for Canadians. Highlights include:

  • Investing $4 billion over five years for funding to the Canadian Mortgage Housing Corporation to launch a Housing Accelerator Fund to support cities in increasing housing supply, such as per-door incentives. The fund will consider rural community situations.
  • Creation of a Tax-Free Home Savings Account to provide prospective first-time homebuyers with the ability to save up to $40,000. Contributions would be tax-deductible (like an RRSP), and withdrawals including investment income would be non-taxable (like a TFSA).
  • Creation of the Canada Growth Fund, which would operate at arms-length from the federal government, to attract investment towards the policy goals of emissions reductions, supporting exports, and supply chains.
  • $1.5 billion over seven years for infrastructure investments to support critical mineral supply chains, plus a further $1.5 billion to support manufacturing, processing and recycling applications.
  • Introduction of a 30% Critical Mineral Exploration Tax Credit, with a particular focus on nickel, lithium, cobalt, graphite, REEs, vanadium, tellurium, gallium, scandium, titanium, magnesium, zinc and platinum.
  • Commitment to develop a post-pandemic Federal Tourism and Growth Strategy, including $20 million over two years, starting in 2022-23, in support of a new Indigenous Tourism Fund.
  • Additional taxes on banks and insurance companies, including a one-time 15% tax on income above $1 billion under the Canada Recovery Dividend, and permanently raising the corporate income tax on banks and insurance companies by 1.5% on income over $100 million.
  • Introducing a gradual phase-out of access to the small business tax rate, with access to be fully phased out once a business reaches $50 million of capital rather than the current $15 million. This will save small businesses an estimated $660 million over four years.
  • Up to $30 million over two years, starting in 2022-23, to Environment and Climate Change Canada to administer direct payments to support emission-intensive, trade-exposed SMEs in Alberta, Saskatchewan, Manitoba and Ontario.
  • $329.4 million over six years (with $0.6 million in amortization), starting in 2022-23, to triple the size of the Agricultural Clean Technology Program.
  • $48.2 million (with $2.8 million in remaining amortization) towards a new streamlined foreign worker program for agriculture and fish processing employers.

The Canadian Chamber of Commerce has reviewed the budget’s contents and has provided their insights and an in-depth analysis:

  1. Budget 2022 Summary (Policy Team Report): https://chamber.ca/wp-content/uploads/2022/04/Budget-2022-Member-Update-_FINAL-1.pdf
  2. Budget 2022: More fiscal room and some more spending (Chief Economist Report): https://chamber.ca/wp-content/uploads/2022/04/Budget_2022_EconomistView.pdf

The full 304-page budget document titled Budget 2022: A Plan to Grow Our Economy and Make Life More Affordable can be found here: https://budget.gc.ca/2022/pdf/budget-2022-en.pdf

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