Summary#

The Budget Implementation Act, 2024, No. 1 (Bill C-69) puts many 2024 federal budget measures into law. It creates a new 15% global minimum tax on large multinationals, adds new clean‑economy tax credits, changes several income tax rules for people and businesses, updates excise taxes, and funds targeted programs (school food, Red Dress Alert). It also makes consumer, labour, housing, and crime‑prevention changes, and amends the federal impact assessment law.

• Taxes:
  • New 15% Global Minimum Tax and a domestic top‑up tax (Part 2; Part 3).
  • New refundable credits for clean hydrogen and clean technology manufacturing; higher journalism labour credit; larger Home Buyers’ Plan; doubled volunteer first responder credits; CCB support after a child’s death (Part 1).
• Targeted spending:
  • Up to $70.1 million for a National School Food Program in 2024‑2025; up to $1.3 million for a Red Dress Alert pilot (Part 4, Divisions 3, 26).
  • Indigenous Loan Guarantee Program (up to $5 billion in guarantees) (Part 4, Division 25).
• Cost‑of‑living/consumer rules:
  • Telecom self‑serve cancellation, plan change rights, and fee limits (Part 4, Division 37).
  • Bank‑level “open banking” framework (Consumer‑Driven Banking Act) (Part 4, Division 16).
• Housing:
  • Non‑Canadians home purchase ban extended two years; Underused Housing Tax filing relief and lower penalties (Part 4, Division 1; Part 3, Division 3).
• Worker protections:
  • Presumption of employee status; “right to disconnect” policy requirement; clearer termination rules; EI seasonal extension to October 24, 2026 (Part 4, Divisions 21–23).
• Crime/AML:
  • New offences and tools against auto theft; power to ban certain radio devices; stronger money‑laundering rules and info‑sharing (Part 4, Divisions 34–36).

What it means for you#

• Households

  • School meals: Provinces can receive up to $70.1 million in 2024‑2025 toward a National School Food Program (actual access depends on provincial agreements) (Part 4, Division 3).
  • RESP/CLB: Government can open an RESP for CLB‑eligible children born after 2023 to pay the Canada Learning Bond; CLB eligibility window extended to age 30 (Part 4, Division 5).
  • Home buyers: Home Buyers’ Plan limit rises from $35,000 to $60,000; repayment start is deferred by three more years (Part 1(m)).
  • Child benefits: Canada Child Benefit continues up to six months after a child’s death for deaths after 2024 (Part 1, s.122.62(9)–(12)).
  • Volunteer credits: Volunteer firefighter and search‑and‑rescue credits effectively double (base amount $6,000) for 2024 and later (Part 1, s.118.06(2), s.118.07(2)).
  • CPP: New $5,000 death benefit in some cases; child benefit extended to part‑time students; other survivor and child‑benefit clarifications (Part 4, Division 14).
  • Housing rules: Non‑Canadians home purchase ban extended two years (Part 4, Division 1). Underused Housing Tax: filing exemptions expanded and minimum penalties reduced; new employee‑lodging exemption (Part 3, Division 3).
  • Prices: Higher federal excise duty on tobacco and vaping products (from April 17, 2024 for tobacco; July 1, 2024 for vaping) (Part 3, Division 2).
  • Telecom rights: Self‑serve cancellation/plan changes; notice before fixed‑term contracts end; ban on fees meant to discourage plan changes/cancellation (Part 4, Division 37).
  • Labour rights: Presumption you are an employee unless the employer proves otherwise; employers must have a policy on work‑related communications (“right to disconnect”) and follow clearer termination rules (Part 4, Divisions 21–22).

• Workers and students

  • Student loan forgiveness expanded to more professions in underserved rural or remote communities (early childhood educators, dentists/hygienists, pharmacists, midwives, teachers, social workers, psychologists, personal support workers, physiotherapists) (Part 4, Division 4).
  • EI seasonal workers: Extra weeks measure extended to October 24, 2026 (Part 4, Division 23).

• Small and medium‑sized businesses

  • New small‑business fuel‑charge “carbon” return per employee for CCPCs in designated provinces (amounts set by Finance; per‑employee payments via corporate return) (Part 1, new s.127.421).
  • Journalism credit: credit rate temporarily increased to 35% and per‑employee cap to $85,000 (Part 1, s.125.6).
  • Mineral exploration tax credit extended one year (Part 1).
  • AML compliance: Cheque‑cashing and more services fall under FINTRAC rules; new voluntary info‑sharing between reporting entities; higher public naming powers for violations (Part 4, Division 34).
  • Diversity disclosure: Banks, insurers, and trust/loan companies must disclose board/senior management diversity data (regulations to set details) (Part 4, Division 40).

• Large businesses/multinationals

  • Global Minimum Tax (Pillar Two): 15% minimum effective tax rate, with complex rules, safe harbours, and domestic top‑up tax (Part 2; Part 3).
  • Clean economy credits: Refundable ITCs for clean hydrogen projects (with carbon‑intensity verification, recapture rules) and clean technology manufacturing (Part 1, ss.127.48, 127.49).

• Consumers and public safety

  • Car theft: New Criminal Code offences for possessing/distributing electronic auto‑theft devices; higher penalties for theft with violence or for criminal organizations; enhanced proceeds‑of‑crime tools (Part 4, Division 35).
  • Radiocommunication: Minister can prohibit specified devices (e.g., those used to intercept or steal vehicles) (Part 4, Division 36).
  • Open banking: Consumer‑Driven Banking Act sets a framework to safely share your financial data among accredited entities; new Senior Deputy Commissioner to oversee; details to follow by regulation (Part 4, Division 16).

• Environmental reviews

  • Impact Assessment Act amended to focus federal decisions on “adverse effects within federal jurisdiction” and to better coordinate with provinces/Indigenous processes; adds a two‑step significance/public‑interest decision structure (Part 4, Division 28).

Expenses#

Estimated net cost: Data unavailable.

Key figures explicitly appropriated or capped in the bill:

Notes:

• Many tax changes and refundable credits (clean hydrogen ITC, clean tech manufacturing ITC, journalism credit boost, small‑business carbon proceeds return, HBP increase) affect revenues and outlays, but the bill text does not include fiscal totals (Data unavailable).
• Excise duty increases on tobacco/vaping raise revenue; no amount stated (Part 3, Division 2).
• Global Minimum Tax and domestic top‑up tax likely raise revenue; no amount stated (Part 2; Part 3).

Proponents' View#

• Fairer taxation: A 15% Global Minimum Tax and domestic top‑up reduce profit shifting by large multinationals and level the playing field (Part 2; Part 3).
• Clean economy investment: Refundable credits for clean hydrogen and clean tech manufacturing de‑risk capital projects, tie support to carbon‑intensity performance, and include recapture if targets aren’t met (Part 1, ss.127.48, 127.49).
• Cost‑of‑living and family support: Bigger Home Buyers’ Plan and extended CCB after a child’s death provide targeted relief (Part 1(m); s.122.62(9)-(12)).
• Consumer protection: Telecom self‑serve cancellation and fee bans reduce bill shock and friction; open banking will let consumers safely share data to get better deals (Part 4, Divisions 37, 16).
• Worker protections: Presumption of employee status and right‑to‑disconnect policy address misclassification and after‑hours pressures (Part 4, Divisions 21–22).
• Housing measures: Extending the non‑resident purchase ban and easing Underused Housing Tax compliance focus rules on misuse while reducing red tape for ordinary owners (Part 4, Division 1; Part 3, Division 3).
• Public safety and AML: New offences and device bans target auto theft; broader FINTRAC tools and info‑sharing help deter money laundering and sanctions evasion (Part 4, Divisions 35–36, 34).

Opponents' View#

• Complexity and compliance burden: Pillar Two rules, new ITCs with detailed verification, AML expansions, and open‑banking oversight add significant legal and administrative complexity, especially for mid‑market firms (Part 2; Part 1, ss.127.48–.49; Part 4, Division 34; Division 16).
• Fiscal risk and opacity: Major refundable tax credits (clean hydrogen/manufacturing, journalism) and per‑employee carbon proceeds returns lack cost figures in the bill; loan guarantees add contingent liabilities (Expenses; Part 4, Division 25).
• Market distortions: Targeted industry credits may “pick winners,” crowd out private capital, and risk subsidizing projects that miss carbon‑intensity targets despite recapture (Part 1, s.127.48).
• Borrowing headroom: Raising the borrowing authority ceiling increases federal debt capacity amid higher interest costs (Part 4, Division 39).
• Privacy and security: Open‑banking and expanded AML info‑sharing raise data‑privacy concerns if technical standards and governance are weak (Part 4, Divisions 16, 34).
• Housing impact: Extending the non‑resident home purchase ban may have limited effect on affordability while deterring some investment (Part 4, Division 1).
• Labour rigidity: Presumption of employee status and right‑to‑disconnect policy design may raise compliance costs and reduce flexibility in some sectors (Part 4, Divisions 21–22).