Rachel Gervais
We are weeks away from the release of the 2025 federal budget on November 4th, an unusual timing this year that may signal shifts in fiscal strategy.
For businesses, individuals, and advisors, now is the time to prepare. The policies introduced this fall could shape planning well into 2026 and beyond.
So, what measures might land in the budget?
One possibility is a hike to the GST rate. Advocates say it's a relatively blunt but effective tool to generate revenue. But a broad-based tax hike for everyone? That's unlikely. Instead, we may see targeted measures, like higher rates for top earners or excess profit levies on certain sectors.
The budget may also include enhancements to scientific research and experimental development, expand flow-through shares for tech, or even a Canadian patent box, a regime to tax intellectual property more favorably at home.
To manage the fiscal side, expect spending cuts. The government has already signaled operational saving targets between 7 and 15%, with funds likely to shift towards higher priority areas.
Personally, I'm hoping to see more support for innovation, especially measures that help keep the rewards of Canadian innovation in Canada. A patent box regime, for example, could be a game changer.
For deeper insights, join BDO's webinar on November 5th, where our team will unpack the budget as it's released, what the changes mean, and how you can respond.
Register at the link below.
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