Millards Chartered Professional Accountants is excited to share our 2025 Federal Budget Commentary Special Report, following the federal budget delivered on November 4 by the Honourable François‑Philippe Champagne, Minister of Finance and National Revenue.
Pam Merrylees, CPA, CA, LPA and Partner at Millards in Brantford, says the report provides a quick, clear overview of the key highlights affecting Canadian individuals and businesses.
“We encourage our clients, local business owners, and the broader Millards community to download the report and explore how this budget may affect their business or family,”
Budget 2025 — Canada Strong aims to support economic growth, simplify tax measures, and enhance incentives in areas like clean technology, manufacturing, and personal support for Canadians. While personal and corporate tax rates remain unchanged, several important measures will have a direct impact on individuals, businesses, and organizations alike.
What businesses and individuals should look for in the 2025 Federal Budget
Individuals & families: Review how automatic tax filings, new credits, and top-up measures may apply to your household.
Small and medium-sized businesses (SMEs): Consider the impact of accelerated CCA, dividend refund rules, and SR&ED enhancements on year-end planning and investment decisions.
Non-profits and other organizations: Take note of deferred reporting obligations and other regulatory changes that may affect compliance.
Planning ahead: Many measures take effect immediately or in upcoming taxation years, so early planning is key.
Key Budget 2025 Highlights
Personal Measures
Automatic tax filings: Low-income Canadians may soon have their returns filed automatically by the CRA, beginning with the 2025 tax year. Individuals can opt out if preferred.
Personal Support Workers Tax Credit: Eligible workers providing one-on-one care in healthcare establishments may receive a refundable 5% tax credit (up to $1,100).
Top-Up Tax Credit: Maintains the effective value of non-refundable tax credits for amounts exceeding the first income tax bracket threshold.
Business Measures
Accelerated Capital Cost Allowance (CCA): Expanded deductions for certain manufacturing, clean energy, and low-carbon LNG assets. Immediate expensing is available for eligible manufacturing or processing buildings.
Dividend Refund Rules: New limits on deferral of tax in corporate structures with mismatched year-ends.
Scientific Research & Experimental Development (SR&ED): Enhanced expenditure limits and credit rates for qualifying Canadian-controlled private corporations.
Clean Economy Measures
Expansion of the Critical Mineral Exploration Tax Credit and Clean Technology Manufacturing Investment Tax Credit to additional minerals.
Extension of the Carbon Capture, Utilization and Storage (CCUS) Investment Tax Credit full rates to 2035.
Inclusion of the Canada Growth Fund under the Clean Electricity Investment Tax Credit.
International Measures
Modernization of transfer pricing rules to align with OECD standards.
Simplified documentation and increased thresholds for transfer pricing penalties.
Sales and Excise Measures
Elimination of the Underused Housing Tax.
Removal of the luxury tax on aircraft and vessels (but not vehicles).
Measures to prevent carousel GST/HST frauds in telecommunications.
Other Measures
Deferral of bare trust filing requirements to 2026.
Deferral of expanded non-profit organization reporting to 2027.
Various EI, parental benefit, and labor law enhancements.
Funding for foreign credential recognition initiatives and regulation of fiat-backed stablecoins.
Previously Announced Measures
Budget 2025 confirms the government will proceed with a range of previously announced initiatives, including enhancements to the capital gains rollover for small business investments, Canada carbon rebates for small businesses, and changes to charitable donation deadlines and lifetime capital gains exemptions.
Download our Special Report
Click below to download the full Millards Federal Budget Commentary Special Report. It provides detailed analysis, insights, and a breakdown of key measures by client type.
By staying informed and proactive, you’ll be better positioned to respond to the changes announced in the 2025 federal budget. Contact Millards Chartered Professional Accountants in Brantford to discuss how the budget may affect your personal or business situation.
Leave A Comment