Federal to Draft Basic Income Framework

Summary#

This bill directs the federal Minister of Finance to design a national framework for a guaranteed livable basic income for everyone in Canada age 18 and older (over 17). It sets rules for consultations, core design principles, and reporting deadlines. It does not create any new payments or change taxes. It requires public reports to Parliament and yearly reviews.

• Framework due within 1 year of the Act coming into force, then annual reviews starting within 2 years (Sections 4–5).
• Coverage goal: all persons over age 17 (Section 3(1)).
• No work, education, or training requirements to qualify (Section 3(4)(c)).
• Regions must define what “livable” means based on local costs (Section 3(4)(a)).
• Disability- and health-related supports cannot be reduced because of the program (Section 3(4)(d)).
• Provinces/territories and Indigenous governments must be consulted; national standards will guide implementation (Sections 3(2)–3(4)(b)).

What it means for you#

• Households and individuals (age 18+)

  • No immediate cash payments. The bill only requires a framework and reports (Sections 3–5).
  • If a future program follows this framework, you would not need to work or be in school to qualify (Section 3(4)(c)).
  • Any future benefit level would be tied to local cost of living in your region (Section 3(4)(a)).
  • Timeline: the Minister must table the framework within 1 year of the Act taking effect, then publish it within 10 days (Section 4).

• People with disabilities and those with exceptional health needs

  • The framework must ensure your existing health- or disability-related services are not cut because of a basic income program (Section 3(4)(d)).

• Workers and job seekers

  • No immediate change to employment rules or benefits. If a future program is created, qualification would not depend on employment status (Section 3(4)(c)). Details on how earnings would interact with benefits are not set in this bill.

• Students and trainees

  • If a future program is created, being in school or training would not be required to qualify (Section 3(4)(c)).

• Provinces and territories

  • You must be consulted on health, disability, education, housing, and social development aspects (Section 3(2)).
  • The framework will set national standards to guide implementation in every province (Section 3(4)(b)), while considering jurisdictional responsibilities (Section 3(3)).

• Indigenous governments and communities

  • Indigenous Elders and Indigenous governing bodies must be consulted in developing the framework (Section 3(2)).
  • The framework must consider federal, provincial, and Indigenous jurisdictional roles (Section 3(3)).

• Federal government

  • The Minister of Finance must develop and table the framework within 1 year, publish it, then conduct a review within 2 years and every year after, with reports to Parliament (Sections 4–5).

Expenses#

Estimated net cost: Data unavailable.

• The bill authorizes no benefit payments or tax changes. It mandates the development of a policy framework and public reporting (Sections 3–5).
• No explicit appropriation is included in the bill.
• Administrative costs for consultations, analysis, and annual reporting are not estimated in public documents. Data unavailable.
• Any future costs for a basic income program would depend on a later law setting benefit levels, phase-outs, and funding. Data unavailable.

Proponents' View#

• Establishes clear coverage intent: all persons over age 17, creating a universal gateway to support if a future program is enacted (Section 3(1)).
• Grounds benefits in actual local living costs by requiring a region-by-region definition of a “livable” income (Section 3(4)(a)).
• Protects vulnerable people by barring cuts to exceptional health or disability supports due to a basic income program (Section 3(4)(d)).
• Removes barriers by prohibiting work, education, or training requirements to qualify, which can exclude people in precarious situations (Section 3(4)(c)).
• Builds national coherence through standards for health and social supports that would complement a basic income, aiding portability and fairness across provinces (Section 3(4)(b)).
• Adds accountability with firm deadlines: framework within 1 year, public posting within 10 days of tabling, and regular effectiveness reviews starting within 2 years and then annually (Sections 4–5).

Assumptions to note: Benefits to poverty reduction or health depend on a later decision to fund and implement a program consistent with the framework. The bill itself does not deliver payments.

Opponents' View#

• Cost uncertainty: the bill provides no fiscal plan or cap. A future nationwide program could require very large new federal spending, but the bill offers no estimate or funding source (Sections 3–5). Data unavailable.
• Jurisdictional risk: setting national standards in areas tied to provincial programs (health, social assistance) may trigger intergovernmental conflict or delay (Sections 3(2)–3(4)(b)).
• Work incentives: banning work or training requirements could reduce labour supply in a future program, though the bill does not define earning offsets or phase-outs (Section 3(4)(c)). Data unavailable.
• Implementation complexity: defining “livable” income for every region and keeping it current with prices is demanding and may yield uneven application (Section 3(4)(a)).
• Service protection gap: while the bill says disability and health supports should not be reduced, it does not set enforcement tools or penalties if other governments adjust programs (Section 3(4)(d)).
• Process without delivery: the bill may create ongoing reporting costs and expectations without guaranteeing that a basic income program will ever be enacted (Sections 4–5).