This afternoon, Finance Minister Chrystia Freeland, announced the 2022 federal budget, entitled, “A Plan to Grow Our Economy and Make Life More Affordable.”
Key budget highlights for the tourism industry include:
- $20 million over two years, starting in 2022-23, in support of a new Indigenous Tourism Fund
- $4.8 million over two years, starting in 2022-23, to the Indigenous Tourism Association of Canada to support its operations
Key budget highlights on housing include:
- A Foreign Buyers Ban, making it illegal for foreigners to buy any residential properties in Canada for the next two years
- $4 billion to help municipalities update their zoning and permit systems to allow for speedier construction of residential properties
- $4 billion for the construction of affordable housing units, adding 100,000 new homes
- A multigeneration home renovation tax credit up to $7500
- New tax rules for those flipping a house
- Doubling the First-Time Home Buyers Tax Credit to $10,000
- A new tax-free first home savings account ($40,000 in tax free savings)
- $4 billion for housing for Indigenous communities
- $1.5 billion in loans and funding for co-op housing
Other budget highlights include:
- $110 million over 3 years to extend EI supports for seasonal workers (including those in tourism) and ensuring that the timing of COVID-19 benefits does not affect future EI eligibility
- Proposal to phase out access to the small business tax rate more gradually, with access to be fully phased out when taxable capital reaches $50 million (previously $15 million)
- $43 million to support proof of vaccination and ArriveCAN app
- $500M in further military aid for Ukraine
- $5.3 billion to develop a national dental care plan for low-income families
- National pharmacare plan to be developed and approved by 2024
- $8 billion for defence and cybersecurity
- More than $3 billion in funding to make zero-emission vehicles more affordable and build a national network of charging stations
- A permanent 1.5% increase in the corporate income tax rate of banking and life insurance groups
- Proposal to launch a new cannabis strategy table that will support an ongoing dialogue with businesses and stakeholders in the cannabis sector
To read the full 2022 Budget, please see here.