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  • Writer's pictureHarpreet Malhi

How Will the Federal Budget 2024 Impact the Economy and Your Finances?

Updated: 5 days ago



On April 16, 2024, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2024 – Fairness for Every Generation, to the House of Commons.

No changes were made to personal or corporate tax rates. Some highlights include the following:


Personal Measures

  • An increase to the capital gains inclusion rate to 2/3, however individuals will retain the 1/2 inclusion rate on the first $250,000 of capital gains annually. Coming into effect on or after June 25, 2024.

  • An increase to the lifetime maximum capital gains exemption, and two new incentives on specific types of business sales. Increase to $1,250,000 for dispositions taking place on or after June 25, 2024.

  • Modifications to the proposed amendments to focus the alternative minimum tax regime on high-income individuals.

Business Measures

  • A Canada carbon rebate for small businesses that will begin by delivering payments to eligible CCPCs for five years of carbon tax.

  • Accelerated capital cost allowance on purpose-built residential rental properties.

  • Immediate expensing of certain productivity-enhancing assets, including computer hardware, acquired on or after April 16, 2024.


International Measures

  • A crypto-asset reporting framework that will require annual reporting by crypto-asset service providers on their clients’ activities using these assets.


Sales and Excise Measures

  • Extension of the GST exemption for new purpose-built rental housing projects to not-for-profit universities, public colleges and school authorities.


Other Measures

  • Details on the Canada disability benefit intended to commence in July 2025.


Previously Announced Measures

  • Intention to proceed with previously announced measures, including the denial of expenses for non-compliant short-term rental activities; the exemption of certain services of psychotherapists and counselling therapists from GST/HST; proposals related to the underused housing tax; temporarily pausing the fuel charge on heating oil; various clean energy tax credits; and other initiatives related to the clean economy.

Contact us today to discuss how we can help you or your business navigate through these changes and assist in new incentives provided by the federal government.


Malhi Accounting Professional Corporation proudly provides tax and accounting services to businesses and individuals across Canada. Whether you require assistance with an audit or guidance in preparing for the tax season, Malhi Accounting offers reliable and transparent assistance at every step. A sincere desire to set clients up for success paired with over a decade of experience ensures progressive and reliable consulting services for individuals and businesses alike. To access the advice only a Chartered Professional Accountant can provide, contact Malhi Accounting today at harpreet@malhiaccounting.com or +1-416-407-5436, or visit malhiaccounting.com/contact


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