With the federal budget set to be released on November 4, Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB), is urging Ottawa to focus on economic certainty, follow through on past promises, and provide much-needed relief for small businesses.
In a video interview (see below), Kelly outlined CFIB’s top recommendations to the federal government. Chief among them is the immediate release of the outstanding carbon tax rebate for small businesses—funds that have already been collected but not yet returned. According to Kelly, about $630 million remains unpaid, with small businesses in eight provinces eligible for rebates based on employee headcount and location. Businesses in resource-heavy provinces like Alberta, Saskatchewan, and Newfoundland and Labrador are expected to receive more, while the average 10-person business could see around $1,000. Kelly hopes the funds can be dispersed by December 2025.
Dan Kelly
Kelly also pressed for action on the promised increase to the lifetime capital gains exemption, which would raise the threshold from $1 million to $1.25 million, allowing business owners to retain more proceeds tax-free when selling their businesses. While the change has been acknowledged in principle, Kelly emphasized the need for formal legislative approval in the upcoming budget.
The CFIB is also advocating for reductions to the small business corporate tax rate, relief from tariffs, and a clear roadmap to balance the federal budget over time. Kelly stressed that while immediate balance isn’t realistic, long-term fiscal planning is critical, especially given the growing size of the federal civil service and unsustainable deficits.
Overall, Kelly described the current business climate as marked by ongoing uncertainty, with many entrepreneurs still reeling from five years of economic and political disruption. He called on the government to provide stability and predictability—the foundation small businesses need to grow and invest.
The CFIB’s
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