Key Takeaways from the 2024 Fall Economic Statements
The Governments of Canada and Ontario both released their respective Fall Economic Statements, or “mini-budgets” in November. We have pulled some key highlights here that may be of interest to you:
Government of Canada’s Fall Economic Statement
The government announced new measures totaling almost $21 billion over the next six years, which primarily focused on affordable housing and clean energy.
Tax: No changes to personal or corporate income tax rates are proposed. The government did indicate that it would continue with previously announced measures, including changes to the Alternative Minimum Tax regime. Further details on these changes have yet to be announced.
Housing: The government is proposing to exclude allowing tax deductions for expenses incurred to earn short-term rental income in provinces and municipalities that have prohibited short-term rentals on or after January 1, 2024. Deductions would also be denied if operators are not compliant with relevant provincial or municipal licensing requirements.
Businesses: As previously announced, the repayment deadline for Canada Emergency Business Account loans to qualify for partial loan forgiveness is January 18, 2024.
Government of Ontario’s Fall Economic Statement
Business Tax: Ontario will match the federal government’s changes related to the general anti-avoidance rule, if enacted.
Personal Tax: The government is proposing to expand eligibility for the Ontario Focused Flow-Through Share Tax Credit, which will provide eligible shareholders with a 5% tax credit for eligible critical mineral exploration expense.
Other: Ontario will increase its rebate on the provincial portion of the HST for certain purpose-buolt rental housing. The government has also extended its cut to the gas tax to June 30, 2024.
If you have any questions about these or other recent government announcements that may impact you or your business, please reach out to us.