Legislation passes to implement measures from the Spring Economic Update 2026

Legislation passes to implement measures from the Spring Economic Update 2026

From: Department of Finance Canada

News release

June 19, 2026 - Ottawa, Ontario - Department of Finance Canada

Today, Bill C-30, An Act to implement certain provisions of the Spring Economic Update tabled in Parliament on April 28, 2026, received Royal Assent. This important legislation delivers targeted measures to support Canadians, build a strong economy and ensure that Canada is well positioned to navigate current global challenges and achieve long-term prosperity.

Bill C-30 introduces key measures to help reduce everyday costs, including:

• Suspending the federal fuel excise tax on gasoline and diesel from April 20 to September 7, 2026, cutting costs by 10 cents per litre on gasoline and 4 cents on diesel fuel. The federal fuel excise tax on aviation fuels is also temporarily suspended.
• Extending excise duty relief for the alcohol sector, including a 2% cap on annual inflationary duty increases and reduced rates for the first 15,000 hectolitres of beer brewed in Canada-providing over $30 million in relief through 2028 and supporting thousands of jobs.
• Easing homeownership costs by extending the Home Buyers' Plan repayment grace period from two to five years for withdrawals made from RRSPs between 2026 and 2028, helping new homeowners manage costs in the early years of ownership.

To support workers and families, measures adopted include:

• Enhancing the Labour Mobility Deduction by reducing the minimum distance threshold from 150 km to 120 km and increasing the maximum deduction from $4,000 to $10,000 annually - helping tradespeople who travel for work save more on taxes.
• Supporting seasonal workers by extending the temporary Employment Insurance measure providing seasonal workers in targeted regions with up to five extra weeks of benefits to help cover income gaps between seasons.
• Lowering Canada Pension Plan contributions by reducing the base CPP contribution rate from 9.9% to 9.5% starting in 2027, saving about $133 annually for an employee earning $70,000, with matching savings for employers.

Bill C-30 also takes steps to support Canadian businesses and create a positive investment climate:

• Encouraging employee ownership by making permanent the $10 million capital gains exemption for qualifying business transfers to employee ownership trusts and worker co-operatives, supporting succession planning and preserving local jobs.
• Expanding agricultural production by allowing immediate expensing for greenhouses, helping expand domestic food production and strengthen food security.

To strengthen Canada's financial frameworks and economic security, measures adopted include:

• Streamlining national security reviews by amending the Bank Act to ensure that investments by foreign banks and their affiliates can be reviewed for national security risks under one framework only, reducing duplication and ensuring clear, efficient oversight.
• Consolidating cost recovery by amending the Bank of Canada Act to consolidate the Bank of Canada's cost recovery responsibilities for its supervisory mandates, ensuring transparent and consistent rules.

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