Saving money is about to get a bit easier. Canada has made several new laws official to “make life more affordable” for students, first-time homebuyers, small business owners, and families.
On Thursday, December 15th, Bill C-32, a.k.a. the Fall Economic Statement Implementation Act, 2022, received Royal Assent.
As part of the Act, several proposed laws can now become official.
These new laws are designed to help “families cope with increasing costs, make housing more affordable,” and strengthen Canada’s economy.
The key decisions include permanently scrapping interest on Canada Student Loans and Canada Apprentice Loans, to relieve the financial burden of student loan repayment.
Update: Our government’s legislation to permanently eliminate interest on Canada Student Loans, to cut taxes for growing small businesses, to double the First-Time Home Buyers’ Tax Credit (and more!) has officially become law. Get the details: https://t.co/09ze1CSlbL
— Justin Trudeau (@JustinTrudeau) December 15, 2022
Canada will also be cutting taxes on Canada’s growing small businesses from 15% to 9% by “more gradually phasing out their access to the small business tax rate,” and allowing them to thrive.
The government is launching a new Tax-Free First Home Savings Account, which will allow first-time homebuyers to save $40,000 tax-free toward their first home starting in mid-2023.
Canada is also doubling the First-Time Home Buyers’ Tax Credit to help Canadians pay for closing costs on their first home.
A new Multigenerational Home Renovation Tax Credit will be launched on January 1st, which will provide families with a tax credit of up to $7,500 if they have a family member with disabilities moving in with them.
Plus, Canada will be “cracking down on house flipping” by fully taxing the profits of the house if it is held for less than 12 months.
The government will also be coming after Canada’s largest financial institutions with a new one-time 15% tax on income above $1 billion.
While there’s no denying that it’s hard to save money in today’s world, at least the government is stepping in with some much-needed support.