Budget Measures Get the Green Light: Bill C-15 Receives Royal Assent

Geoff Currier

On March 26th, Bill C-15 received Royal Assent. A synopsis of some of the most significant elements of the Bill appear here; provisions that advisors and clients should be discussing when preparing tax returns before the end of April.  This includes the fact that the GST/HST Credit has now been replaced – but your clients may not know this.  There are new Capital Cost Allowance Provisions for rental property owners, provisions for the disabled and the Personal Support Workers Tax Credit is now law.

The New Canada Grocery and Essentials Benefit:   The GST/HST credit was introduced in  1991 with the unpopular GST.  The income-tested quarterly payments were a fairness measure  meant to offset the regressivity of the federal consumption tax, which disproportionately burdens low income households.

The newly named Canada Groceries and Essentials Benefit (CGEB) which replaces the former GST/HST credit appears to be more politically motivated. It is designed to help 12 million low-and modest-income individuals but with inflation-affected purchases, some of which are not necessarily taxed under the GST (most groceries for example).  However,  it will be calculated in the same was as credit under the old name – and you do have to file a tax return to get it.

The CGEB will increase the value of the benefit by 25% over a five year period beginning in July of this year. 

In other federal sales tax news, the GST on new homes for first-time buyers has been removed, exempting them from paying as much as $50,000 in GST.   For builders, Capital Cost Allowance (CCA) rates have been increased for new residential rental buildings. 

Finally, the consumer portion of the carbon tax was removed in 2025 but it was a part of Bill C-15 and is now law.

Improved Benefits:  The Canada Child Benefit (CCB) is going up as of July 2026. Eligible families could receive up to $8,157 per year per child under 6 and up to $6,883 for each child 6-17. 

New Tax Filing Coming soon For Tax Year 2026: In a measure aimed at lower-income Canadians, there will be pre-filled tax returns starting in the spring of 2027. This will ensure that federal benefits reach individuals who might not file a return and thus lose out on those benefits.

Benefits For Disabled People.  In addition, expect some changes to the Disability Tax Credit (DTC) . If you have clients who were eligible for the DTC but did not claim it, they cannot go back up to 10 years to make their claim. The new amount is $10,138 with an additional $5,914 for those under 18.  The Canada Disability Benefit payment is now officially exempt from income.

Tax Rate Drops to 14%.  Another previously announced measure which is now law is the reduction of the lowest personal income tax rate from 15% to 14%.

Other Assorted Measures:

• A temporary Personal Support Workers Tax Credit is part of this bill. It provides up to $1,100 per year to eligible personal support workers.
• The Lifetime Capital Gains Exemption has been increased to $1.25 million.
• Both the Digital Services Tax and the Underused Housing Tax have been repealed. There may still be a form of the underused housing tax applied at the provincial or municipal levels. 

Business News: There are some new incentives available through the Scientific Research and Experimental Development program (SR & ED). The annual expenditure limit for the 35% refundable credit has been raised to $6 million.

The Bottom Line:   Don’t forget to open new conversations about these tax changes, as appropriate, with your clients.   Some of them will impact their tax planning for 2026 and beyond, and in addition, may well form a part of a ext election campaign focus.