Canada to Welcome Host of Policy Changes from 2023

Canada will be welcoming some changes in policy next year. Some changes are improvements to previously implemented regulations while others are new additions to the system. While some of the changes will impact all of Canada, others are more province-specific.

Some of the changes in policy coming into effect in 2023 are:

Higher payroll deductions

Canadian workers will get less take-home pay as contributions to Canada Pension Plan (CPP) and employment insurance (EI) premiums are increasing. The Canada Revenue Agency announced in November that CPP contribution rates will go up to 5.95 percent from 5.70 percent in 2022. As for employment insurance premiums, they can go up to $1,002.45 in 2023, compared to $952.74 in 2022.

Foreign homebuyer ban

Foreign commercial enterprises and people will be banned from purchasing residential property for two years starting January 1, 2023. This ban was put in place to combat the housing shortages and affordability issues. Notably, temporary work permit holders, international students who meet certain criteria, and refugee claimants will be exempt from this rule.

Carbon price increase

From April 1, 2023, carbon pricing is said to increase from $50 per tonne to $65 per tonne which means the current 11.05 cents per liter carbon price of gas will increase to 14.31 cents per liter. From July 1, clean fuel regulations will come into action and further increase gas prices.

TFSA limit increase

For the first time since 2019, the maximum amount that can be put in your Tax-Free Savings Account (TFSA) for 2023 has been increased to $6,500.

Some of the province-specific rules and regulations coming into effect from 2023 include:

Ontario

Pharmacists in Ontario will be able to prescribe medications for 13 common ailments which means residents will be able to avoid a hospital visit. From March 31, seniors and those on social assistance will be transferred to cheaper, generic prescription medications covered by the Ontario Drug Benefit (ODB) plan. From June 1, some workplaces deemed at risk of staff witnessing or experiencing an opioid overdose will need to keep Naloxone kits.

British Columbia

There will be a three-day consumer protection period for homebuyers to secure financing and arrange home inspections. This will be in effect from January 3 next year. Additionally, From January 1, minimum age requirements for hazardous work will be enforced.

Alberta

Affordability payments will be rolled out in 2023 to those who are eligible as part of the province’s inflation relief efforts. This means seniors with annual household incomes below $180,000 can apply to get six monthly payments of $100. They can also get the same payments for each dependent child under 18 years of age. Furthermore, the provincial fuel tax in Alberta will drop from January 1 to July 1.

Manitoba

Manitoba will increase its minimum wage by 65 cents on April 1, 2023. The minimum wage will become $14.15 per hour and a further increase is expected by October 1, 2023, taking it to $15. The first phase of the new disability income support program will be in place from January 1. This plan is said to “provide better supports and services for Manitobans living with severe and prolonged disabilities.”

Vineet Washington