Summary#

This Budget Implementation Act (C-19, 2022) is a wide package. It changes taxes, benefits, consumer rules, health and transit funding, corporate transparency, sanctions, and more. Several parts take effect in late 2022 and 2023.

Key practical changes:

• New federal Luxury Tax on cars and aircraft over $100,000 and boats over $250,000, from September 1, 2022 (Part 4).
• Two-year ban on home purchases by non‑Canadians, starting January 1, 2023 (Part 5, Div. 12).
• New excise duty and stamping rules for vaping products, with penalties, from October 1, 2022 (Part 3, Div. 1).
• Up to $2.75 billion in one‑time payments for health care and transit/housing (Part 5, Div. 4 and Div. 6).
• 10 days paid medical leave for most federally regulated workers (Part 5, Div. 29).
• Stronger Competition Act rules (wage‑fixing made criminal, higher fines, “drip pricing” banned) (Part 5, Div. 15).

What it means for you#

• Households

  • Luxury Tax on new purchases: 10% of total price or 20% of the amount above the threshold (whichever is less) for certain vehicles, aircraft, and boats (Part 4). Applies to sales and imports on or after September 1, 2022.
  • Quarterly Climate Action Incentive (carbon rebate) replaces the prior annual credit, with rules for who gets paid each quarter (Income Tax Act s.122.8 as amended; payments after June 2022) (Part 1).
  • Disability Tax Credit broadened (includes deemed eligibility for type 1 diabetes; expands “mental functions” criteria) (Income Tax Act s.118.3, s.118.4) (Part 1).
  • Home Accessibility Tax Credit limit doubled to $20,000 in eligible expenses (Income Tax Act s.118.041) (Part 1).
  • Copyright term extended to 70 years after the author’s death (Part 5, Div. 16).

• Renters and homebuyers

  • Assignment sales of new housing are subject to GST/HST on the assignment amount (Part 2).
  • Non‑Canadians cannot buy residential property for two years from January 1, 2023, with some exceptions (students, refugees, spouses). Penalty up to $10,000; courts may order sale (Part 5, Div. 12).

• Workers

  • Paid medical leave: employees in federally regulated workplaces earn up to 10 paid days per year (earn 3 days after 30 days, then 1 per month; cap 10). Large employers first, then others by regulation, no later than December 1, 2022 (Part 5, Div. 29).
  • Labour Mobility Deduction for certain tradespeople: claim up to $4,000 for temporary relocation expenses, 2022 onward (Income Tax Act s.8(1)(t)) (Part 1).
  • Postdoctoral fellowship income now counts as “earned income” for RRSP room (Income Tax Act s.146(1)) (Part 1).
  • Competition Act now criminalizes wage‑fixing and “no‑poach” agreements between unaffiliated employers (max 14 years imprisonment and/or fine) (Part 5, Div. 15).

• Small businesses and charities

  • Zero‑emission technology manufacturing tax credit rate up to 7.5% (general) with phase‑down after 2029 (Income Tax Act s.125.2) (Part 1).
  • New charity rules allow “qualifying disbursements” to non‑qualified donees under conditions, plus transparency on large grants to grantee organizations (Income Tax Act s.149.1; Regs s.3702.1) (Part 1).
  • Competition Act raises administrative monetary penalties and allows private access to the Tribunal for abuse of dominance (Part 5, Div. 15).

• Consumers

  • “Drip pricing” (showing a price not attainable because of mandatory fees) is a false or misleading claim (civil and criminal) (Competition Act s.52(1.3); s.74.01(1.1)) (Part 5, Div. 15).
  • Vaping products face federal excise duty and stamping; illegal sale/possession penalties; import rules (effective October 1, 2022) (Part 3, Div. 1; Schedule 8).

• Provinces/territories and municipalities

  • One‑time federal payments to provinces/territories totalling $2,000,000,000 (amounts listed by jurisdiction) (Part 5, Div. 6).
  • Up to $750,000,000 for transit shortfalls/needs and improving housing supply and affordability (Part 5, Div. 4).

• Transparency, sanctions, and other

  • Corporations must send “individuals with significant control” information to the federal Director and it may be shared with law enforcement (Canada Business Corporations Act s.21.21–21.22) (Part 5, Div. 30).
  • New power to seize/forfeit sanctioned property (including digital assets) and use proceeds to support victims, reconstruction, or peace/security (Part 5, Div. 31).
  • Criminal Code creates an offence for wilfully promoting antisemitism by condoning, denying, or downplaying the Holocaust (max 2 years) (Part 5, Div. 21).

Expenses#

Estimated net cost: CAD $2.75 billion (one‑time, 2022), plus unquantified revenue and tax changes.

• One‑time authorizations:
  • Additional federal payments to provinces/territories: CAD $2.0 billion (Part 5, Div. 6).
  • Payments for transit shortfalls/needs and housing supply/affordability: up to CAD $750 million (Part 5, Div. 4).

Notes:

• The Act authorizes the one‑time payments above; actual disbursement timing depends on the Minister (Part 5, Div. 4, Div. 6).
• Many measures change revenues or private costs (e.g., Luxury Tax, Competition Act penalties, paid sick leave borne by employers). No consolidated fiscal note is in the bill text. Data unavailable.

Proponents' View#

• Helps households now:
  • Climate Action Incentive paid quarterly improves cash flow for families in backstop provinces (Income Tax Act s.122.8) (Part 1).
  • Doubled Home Accessibility Tax Credit supports aging at home (Income Tax Act s.118.041) (Part 1).
• Supports workers and public health:
  • Up to 10 days paid medical leave reduces disease spread and keeps sick workers at home (Part 5, Div. 29).
  • Trades mobility deduction lowers costs to take jobs far from home (up to $4,000) (Part 1).
• Fairness and consumer protection:
  • Luxury Tax asks high‑end buyers to contribute more (Part 4).
  • Competition Act curbs wage‑fixing and hidden fees (“drip pricing”), raises penalties, and lets victims challenge abuses (Part 5, Div. 15).
• Housing and community support:
  • Non‑resident home purchase ban eases pressure on housing demand, while provinces/territories get $2.0 billion and transit/housing up to $750 million (Part 5, Div. 12; Div. 4; Div. 6).
• Public health and youth:
  • Vaping excise duty with stamping combats youth vaping and illicit trade (Part 3, Div. 1).

Opponents' View#

• Economic and jobs risk:
  • Luxury Tax may depress sales of Canadian‑made cars, boats, and aircraft, harming supply chains and skilled jobs, with uncertain revenue yield (Part 4).
• Limited impact on housing:
  • Non‑resident ban may be easy to evade (e.g., via companies or relatives) and affects a small share of purchases, so affordability gains could be minor; enforcement will be complex (Part 5, Div. 12).
• Cost and compliance load:
  • Paid medical leave shifts costs to federally regulated employers, notably small carriers and couriers; requires tracking accruals and certificates (Part 5, Div. 29).
  • Vaping excise and stamping could push users to illicit markets; small vape shops face new licensing, tax, and inventory rules (Part 3, Div. 1).
• Litigation and regulatory risk:
  • Stronger Competition Act penalties and private access may chill aggressive but pro‑competitive conduct; “abuse of dominance” test broadened (Part 5, Div. 15).
• Access and culture:
  • Copyright term extension delays works entering the public domain, raising costs for libraries, educators, and creators who build on prior works (Part 5, Div. 16).