Anticipation for Federal Budget 2021

 
unsplash-image-_UIVmIBB3JU.jpg

The Federal government is looking to extend current measures and introduce new measures to support individuals and businesses. As a result of the pandemic, there was no official Federal budget released in 2020. Federal budget 2021 aims to support individuals and businesses through their reopening phases.

Individual measures

  • The Canada Recovery Benefit (CRB) and related COVID-19 programs will be extended, with the CRB extended by 12 weeks to a maximum claim of 50 weeks

  • The Canada Recovery Caregiving Benefit will be extended by 4 weeks, to a maximum of 42 weeks

  • Access to the disability tax credit (DTC) will be broadened

  • individuals now have the option to claim a deduction in respect of the repayment of a COVID-19 benefit amount in the year that the benefit was received

  • A new tax of up to 10% will apply on the purchase of luxury vehicles and aircrafts priced over $100,000, or boats priced over $250,000.

Business measures

  • The Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) will be extended, with both programs extended until September 25, 2021

    • CEWS and CERS will be gradually phased out starting on July 3, 2021, where companies will only be eligible if their revenue decreases by 10% or more

  • Introduction to the Canada Recovery Hiring Program (CRHP), where eligible employers will receive a subsidy of up to 50% of the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021

    • The higher of CEWS or CRHP can be claimed for a particular period, but not both

  • Proposal of immediate expensing of capital assets, where any eligible property can be expensed if purchased by a CCPC on or after Budget Day

These are the major items that the Federal budget aims to execute in the next little while. For more information on the Federal budget and additional items not listed above, please visit: https://www.budget.gc.ca/2021/home-accueil-en.html

 
 
Jessica Bui