The 2021 federal budget focuses largely on supporting individuals and businesses through the COVID pandemic, while creating jobs and economic growth aimed especially at low and middle-class Canadians who have been hurt the most. There will be no changes to the following:
- Personal income tax rates
- Corporate income tax rates
- The capital gains inclusion rate of 50%
- The principal residence exemption
CHILD CARE
After 50 years of talking about it, the Liberal government is investing $30 billion in a partnership between the federal government and provinces, territories and indigenous groups to build a national childcare system. Regulated learning and childcare facilities fees will be reduced by 50 per cent by 2022, with the goal of parents paying a cross-country average of $10 per day by 2025-2026. This does not include Quebec, as the province already leads the country in low childcare rates of $8.85 per day.
WAGE AND RENT SUBSIDIES
The Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) have been extended until Sept. 25th, 2021. The subsidy rates will gradually decrease starting July 4th, with CEWS going from 75% of remuneration paid (up to $847 a week) to 20% by Sept. 25th, calibrated with the increasing rate of vaccinations and the expected growth in the economy. The CERS will also decrease to 20 per cent in September from 65%.
RECOVERY BENEFITS
The Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB) and the Canada Recovery Sickness Benefit will all be extended to Sept. 25, 2021. CRB payments will reduce from $500 a week to $300 a week for the remaining eight weeks of the benefit.
SUPPORT FOR BLACK-LED COMMUNITY ORGANIZATIONS
The 2021 federal budget promises $300 million to support Black-led charitable organizations, with $200 million going to endow a philanthropic fund for charities and organizations aimed at black youth and social initiatives. The remaining $100 million is earmarked for the “Supporting Black Canadian Communities Initiative.”