The Canadian Federation of Independent Business (CFIB) says it is pleased to see talk in Ottawa about advancing a spring budget after all as small businesses across the country are waiting on word on at least five outstanding measures from the 2024 budget and Fall Economic Statement (FES).
The national organization said those include:
1. The tax status of the $2.5 billion small business carbon rebate delivered in December (CRA says it is taxable until government introduces a change).
2. Changes to and delivery of the $623 million small business carbon rebate for 2024/25 (the FES proposed a new formula and government is now sitting on the rebates).
3. A legislative change to allow businesses to qualify for the earlier carbon rebate by filing their returns for those years before Dec. 31, 2024.
4. A bump in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million backdated to June 25, 2024 (introduced but not passed, promised by Prime Minister Carney too).
5. The fate of the new Canadian Entrepreneurs’ Incentive (backdated to Jan. 1, 2025) to lower the inclusion rate to 33% on a lifetime maximum of $2 million in eligible capital gains.
Dan Kelly
“All of these measures are supposed to be in place today, but were delayed due to the filibuster, prorogation of Parliament and election. Only one is temporarily supported by CRA (the LCGE change),” said Dan Kelly, President of the CFIB. “A budget would provide the window for government to introduce the legislation, which should all be ready to go from the last Parliament.
“Without action, small businesses filing their 2024 taxes in June are required to pay corporate income tax on their share of the $2.5 billion carbon rebate they’ve already received and spent. Then, CRA is suggesting 600,000 small business owners file an amendment to get the tax back when the legislation change is made. This makes no sense at all.
“Among the best things the federal government could do to address the massive economic and trade uncertainty facing SMEs is to provide them with certainty on these tax measures. They have all been promised, are ready to go and should be part of a 2025 budget this legislative session.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 100,000 members across every industry and region.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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