Today, the Government of Canada released their budget for the 2023 fiscal year, entitled A Made in Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future. TIAO will do a thorough analysis in the coming days. For now, key highlights include a multi-year investment in destination marketing to attract major international conventions, conferences, and events to Canada; a multi-year investment to support the development of local tourism projects and events; and cutting the planned increase of the federal beverage alcohol tax from 6% to 2%.
Tourism and Hospitality
- A new Federal Tourism Growth Strategy to chart a course for growth, investment, and stability in Canada’s tourism sector.
- $108 million over 3 years, on a cash basis, starting in 2023-24, to the Regional Development Agencies to support communities, small businesses, and non-profit organizations in developing local projects and events.
- $50 million over 3 years, on a cash basis, starting in 2023-24, to Destination Canada to attract major international conventions, conferences, and events to Canada.
- Cutting the planned increase of the federal excise tax on beverage alcohol from 6% to 2%
- Extending the Seasonal Employment Insurance support that provides up to five additional weeks for seasonal workers in 13 economic regions, until October 2024.
- $14 million over two years for the Department of Canadian Heritage to support the Building Communities through Arts and Heritage program which supports local artists, artisans, and heritage performers through festivals, events, and projects, including Indigenous cultural celebrations and the celebration of 2SLGBTQI communities.
- National Museums – funding for six of Canada’s national museums (the Canadian Museum of Nature, the Canadian Museum of History, the Canadian Museum for Human Rights, the National Gallery of Canada, the National Museum of Science and Technology, and the Canadian Museum of Immigration at Pier 21) and the National Battlefields Commission.
Small Businesses
- Lower credit card transactional fees for small businesses up to 27% (eligible small businesses in Canada will save approximately $1 billion over five years).
Additional highlights of the 2023 Federal budget:
Education
- $813.6 million to enhance student financial assistance for the 2023-2024 school year starting Aug 1, 2023.
- $197.7 million to the Student Work Placement Program in 2024-2025 to continue creating work-integrated learning opportunities for students through partnerships between employers and post-secondary institutions.
Transportation
- $1.8 billion over 5 years to the Canadian Air Transport Security Authority (CATSA) to increase its level of service, improve screening wait times, and strengthen security measures at airports.
- $210 million over five years to VIA Rail to conduct maintenance on its trains on routs outside the Québec City–Windsor Corridor and to maintain levels of service across its network.
- Eligibility for the Electronic Travel Authorization Program to low-risk, trusted travellers will be expanded to include more countries, which will be announced in the coming weeks.
Affordable Housing
- Canadian financial institutions can begin offering the Tax-free First Home Savings Account as of April 1, 2023.
- $4 billion to Canada Mortgage and Housing Corporation to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.
Climate Change
- New investment tax credit for clean energy manufacturing worth $4.5 billion over 5 years.
- 15% refundable tax credit for eligible clean electricity investments.
- $20 billion investment from Canada Infrastructure Bank to support the building of major clear electricity and clean growth infrastructure projects.
Other
- Enhanced Canada Workers Benefit (families could receive up to $2461 and a single Canadian could receive up to $1428).
- Grocery Rebate: $2.5 billion for a one-time inflation relief payment (up to $467 for a couple with two children, and up to $234 for a single Canadian).
- A tax-free payment of $500 to help low-income people to assist with the cost of rent.
To read the full 2023 Federal Budget, please see here.