Fall Federal Budget: Will Spending Be Cut?

Canada has historically presented an annual budget since Confederation in 1867, even through periods like World Wars and the Great Depression, but we have recently experienced the longest period without a full federal budget in our history. By the time the next one is brought down, expected in October 2025, it will have been 18 months since the controversial April 2024 budget which introduced the doomed capital gains inclusion rate hikes. What can we expect?

It’s no surprise to you that the Canada Revenue Agency is far from peak efficiency. Difficulty reaching an agent, long delays in getting information, and inconsistent service have finally caught the attention of the minister responsible for the agency that collects our taxes. Over the past 50 years, Canada’s Income Tax Act has grown increasingly complex, making it harder for average taxpayers to file their own returns. When you add CRA’s service shortcomings to the mix, the result is clear: your expertise has never been more essential.

On September 2, Finance Minister Champagne mandated CRA to implement a 100-day plan to “strengthen services, improve access, and reduce delays.” That’s by December 11, 2025. Do you believe this approach will help?   

Government job grants are reopening, and that means your organization may be eligible for significant funding to train new or existing employees. Knowledge Bureau’s accredited programs qualify under these initiatives—whether you’re preparing for the upcoming tax season or helping your staff specialize in new areas. This is also valuable information to share with clients, many of whom may benefit within their own firms. The Canada-Manitoba Job Grant opened and closed this week in the blink of an eye, but those in other provinces can still explore funding options.

Tax and financial professionals overwhelmingly support raising the Canada Deposit Insurance Corporation (CDIC) coverage limit, but many argue the proposed $150,000 per deposit category still falls short. In our recent KBR poll, 95% of respondents favoured an increase, yet most recommended either indexing to inflation or moving directly to $250,000 to better protect today’s depositors. The numbers speak for themselves: the vast majority of respondents favour stronger protection for depositors. But their comments also highlight deep concern about whether $150,000 is sufficient in today’s economic climate.

The enrolment deadline is September 10 for one of the most important CE/CPD Sessions you may attend this year. Canadian tax policy is shifting rapidly, and advisors need to be ready for the impact with sound and confident audit defence knowledge. At the CE Savvy Summit on September 17, 2025, featuring noted tax experts Evelyn Jacks, Kim Moody and Dr. Dean Smith, the Society of RWM Round Table Think Tank will also host a dynamic discussion: Caught in the Crosshairs of CRA.  Be sure to take part of this interactive session as we review recent changes to the tax system, promises to enhance service levels at CRA eliminate loopholes, and strengthen CRA enforcement through technology.

On September 25 at 11 a.m. CST, financial professionals and thought leaders will gather for an insightful panel discussion focused on a transformative concept in wealth management: moving from ROI (Return on Investment) to ROL (Return on Life). This Meeting of the Minds session, titled Redefining What Real Wealth Means to You, aims to shift the conversation beyond the numbers toward what truly matters - aligning financial strategies with clients’ life purpose and peace of mind. The Heart of the Discussion: Five Key Questions that would benefit from your input!