Summary#

Bill C-47 (Budget Implementation Act, 2023, No. 1) puts many 2023 budget measures into law. It affects taxes, benefits, consumer protection, air travel, pensions, anti–money laundering, innovation funding, and more. Several parts take effect on fixed dates; others start after regulations are made.

Key practical effects:

• Puts cash in some households’ pockets (one‑time extra GST credit for January 2023; faster Canada Workers Benefit (CWB) payments) (Part 1 s.122.5(3.003); new s.122.72).
• Raises the Air Travellers Security Charge from tickets purchased after April 2024 (Part 3 Div. 2).
• Funds the new Canada Innovation Corporation (CIC) and gives a one‑time $2.0 billion Canada Health Transfer top‑up (Part 4 Div. 7; Div. 8).
• Tightens tax reporting (digital platforms; reportable/notifiable tax transactions; uncertain tax treatments) (Part 1 new Part XX; ss.237.3–237.5).
• Strengthens consumer protections (single bank complaints body; stronger air passenger rules; lowers criminal interest cap to 35% APR) (Part 4 Div. 1; Div. 23; Div. 34).
• Bans cosmetic animal testing and regulates natural health products more like drugs (Part 4 Div. 27–28).

What it means for you#

• Households

  • Extra GST credit equal to double the regular January 2023 payment (already paid) (Part 1 s.122.5(3.003)).
  • CWB will be paid automatically in advance, quarterly starting with the 2023 tax year (new s.122.72; applies to years beginning after 2022).
  • Employers must report whether you or your family had access to dental coverage on your T4/T4A for 2023 onward (Div. 29).
  • Criminal interest cap lowered to 35% APR; government can set a federal limit on payday loan total cost of borrowing (Div. 34). Timing by regulation.
  • Cosmetic animal testing is prohibited; related marketing claims restricted (in force December 22, 2023) (Div. 28).

• Workers and students

  • Tradespeople’s tools deduction doubled to $1,000 (2023 and later) (Part 1 s.8(1)(s)).
  • Divorced/separated parents can be joint RESP subscribers; higher Educational Assistance Payment limits (from March 28, 2023) (Part 1 s.146.1).
  • RDSP “qualifying family member” rule extended 3 years and expanded to siblings (Part 1 s.146.4).
  • EI seasonal benefit top‑up extended to October 26, 2024 (Part 4 Div. 35).
  • A new EI Board of Appeal will replace most Social Security Tribunal EI appeals (date by order) (Part 4 Div. 38).

• Travellers

  • Air Travellers Security Charge rises for tickets paid after April 2024 (e.g., domestic one‑way to $9.94; transborder to $16.89; international to $34.42) (Part 3 Div. 2).
  • Stronger air passenger rules: streamlined complaint process at the Canadian Transportation Agency, higher burden of proof on carriers, and carrier‑funded complaint system (some parts in force September 30, 2023; others by order) (Part 4 Div. 23).
  • Airlines must route international baggage without delay to the nearest international area; some customs “tele‑presentation” allowed where available (Part 4 Div. 24).

• Savers and investors

  • CRA will receive annual fair market values for RRSPs/RRIFs (from 2023 tax year) (Regulations s.214, s.215).
  • TFSA set‑off rights clarified; minor technical fixes across registered plans (Part 1 s.146.2).
  • CRA reassessment periods extended for certain reportable/notifiable transactions and uncertain tax treatments; significant penalties for non‑filing (Part 1 ss.152, 237.3–237.5).

• Small businesses and platforms

  • Digital platforms (goods sales, rentals, ride‑/task‑services) must report seller info and revenues to CRA starting 2024; sellers will also receive summaries (Part 1 new Part XX; in force January 1, 2024).
  • Cryptoasset mining generally not a taxable supply for GST/HST (no ITCs); applies from February 5, 2022 (Part 2).
  • Payment card network operator services are taxable for GST/HST starting March 28, 2023 (Part 2).

• Bank customers

  • One not‑for‑profit external complaints body designated for all banks; stronger timelines, reporting and oversight by FCAC (Part 4 Div. 1).

• Air and rail users

  • Rail interswitching at regulated rates extended up to 160 km in MB/SK/AB for 18 months; air carriers must publish performance data (Part 4 Div. 22).

• Depositors

  • Finance Minister may temporarily raise CDIC coverage limit until April 30, 2024 (Part 4 Div. 37). Current limit is $100,000 (sightline only).

• Health systems

  • Provinces/territories receive a one‑time $2.0 billion Canada Health Transfer top‑up (Part 4 Div. 8).

Expenses#

Estimated net cost: CAD $2.0 billion one‑time (CHT top‑up in 2023‑2024), plus multi‑year funding for the Canada Innovation Corporation; other items largely administrative or revenue‑neutral; several measures raise user fees/taxes.

Key figures:

• One‑time Canada Health Transfer top‑up: CAD $2.0 billion (allocated by province/territory) (Part 4 Div. 8).

• Canada Innovation Corporation statutory payments (subject to appropriation) (Part 4 Div. 7):

  Item	Amount	Frequency	Source
  CIC payment (FY2023‑2024)	$198,000,000	One‑time	(Div. 7 “Payments out of CRF”)
  CIC payment (FY2024‑2025)	$775,000,000	One‑time	(Div. 7)
  CIC payment (FY2025‑2026)	$800,000,000	One‑time	(Div. 7)
  CIC payment (FY2026‑2027)	$800,000,000	One‑time	(Div. 7)
  CIC payment (each year thereafter)	$525,000,000	Annual ongoing	(Div. 7)

• Air Travellers Security Charge: rate increases from tickets paid after April 2024; federal revenue effect not stated in the Act (Part 3 Div. 2). Data unavailable.

• Excise escalator cap for alcohol at 2% for one year from April 1, 2023; revenue impact not stated in the Act (Part 3 Div. 1). Data unavailable.

• Administration/enforcement (e.g., air passenger complaint system; AML regime; CRA reporting): Data unavailable.

Proponents' View#

• Helps with cost of living now: one‑time GST credit boost for January 2023 and faster CWB payments put cash sooner into low‑ and modest‑income households (Part 1 s.122.5(3.003); s.122.72).
• Strengthens consumer rights: single bank complaints body with tighter timelines and transparency (Part 4 Div. 1); tougher air passenger rules with a higher burden on airlines and a carrier‑funded complaint system (Part 4 Div. 23).
• Curbs predatory lending: lowers the criminal interest rate to 35% APR and enables a federal cap on payday loan total borrowing costs (Part 4 Div. 34).
• Supports workers and learners: doubles the tools deduction, modernizes RESPs/RDSPs, and extends EI seasonal relief (Part 1 s.8(1)(s); s.146.1; s.146.4; Part 4 Div. 35).
• Invests in innovation and growth: establishes and funds the Canada Innovation Corporation to boost business R&D across sectors and regions (Part 4 Div. 7).
• Closes tax gaps and modernizes compliance: platform reporting, reportable/notifiable transactions, uncertain tax treatment reporting, and extended reassessment periods (Part 1 new Part XX; ss.237.3–237.5; s.152).
• Advances health and ethics: one‑time $2.0 billion CHT to reduce pressures; bans cosmetic animal testing and increases oversight of natural health products (Part 4 Div. 8; Div. 28; Div. 27).

Opponents' View#

• Higher travel costs: the increased Air Travellers Security Charge adds to ticket prices from May 2024 purchase dates (Part 3 Div. 2). Impact on affordability is not quantified in the Act.
• Compliance burdens: digital platform reporting, expanded tax‑avoidance reporting, and GST/HST changes may raise costs for small sellers and intermediaries (Part 1 new Part XX; ss.237.3–237.5; Part 2).
• Large new spending with limited program detail: Canada Innovation Corporation receives billions over several years before full public program specifics are established (Part 4 Div. 7).
• Privacy and oversight concerns: political parties’ privacy rules are set as a separate regime in the Elections Act, potentially weaker than general privacy law (Part 4 Div. 39); employer dental‑coverage T4 reporting expands data collection (Div. 29).
• Access to credit: a 35% APR criminal cap may reduce high‑cost credit availability for risky borrowers if lenders exit rather than reprice (Part 4 Div. 34).
• Enforcement reach and red tape: new AML offences (e.g., “structuring”), broader information‑sharing, and digital asset seizure powers could raise operational risks and costs for small money services businesses and fintechs (Part 4 Div. 3; Subdivision B).
• Uncertain fiscal impacts: several measures (air charge, excise cap, complaint systems) lack published costings in the Act, making budget trade‑offs hard to assess (Data unavailable).