Yesterday, in a rare and historic address, King Charles III opened Canada’s 45th Parliament by delivering the Speech from the Throne, only the third time a reigning monarch has done so in our nation’s history. This moment, rich in symbolism and purpose, comes at a time when Canada is navigating significant global and domestic challenges. Amid heightened tensions with the United States, including provocative annexation rhetoric from President Trump, King Charles underscored Canada’s sovereignty and democratic foundations. Here are take-aways that from that speech that could impact your finances:
- The King outlined the government’s vision for economic transformation, describing this period as “an incredible opportunity” for Canada to lead globally. Plans include redefining trade relationships both within Canada and abroad, reducing reliance on the U.S., and building alliances with like-minded nations that share our values. For our members, this could translate into new opportunities for businesses and communities, especially in sectors like renewable energy, sustainable agriculture, and social enterprise.
- A significant policy change is the reduction of the lowest federal personal income tax rate from 15% to 14%, effective July 1, 2025. This adjustment is projected to provide around $800 in annual savings for two-income households.
- As well, the Canadian government has vowed not to increase the capital gains tax. This means that if someone sells an asset, such as a home, cottage, or stocks, the amount the government taxes on their profit will remain the same.
- To address the housing crisis, the government plans to double the rate of residential construction, aiming for almost 500,000 new homes per year over the next decade. As well, there is proposed legislation that will remove the GST on new built or renovated homes priced under $1 million for first-time home buyers.
- Protections are also being promised for Canada’s agri-food sector. These include a continued commitment to supply management in the dairy, poultry, and egg sectors as well as increasing the capacity for domestic processing.
The throne speech outlined an ambitious plan to transform the Canadian economy, yet it remains to be seen if the government can deliver on all of these promises. For Canadians, these policy initiatives are likely to influence financial planning, business decisions, and housing opportunities.
Kindred remains committed to supporting our members through these changes. We encourage you to complete our Financial Health Score Calculator. This simple tool helps you gain insight into your current financial health, provides tips on how to improve your score, and offers you the opportunity to connect with our experts for tailored advice and solutions. You could even be eligible to receive $100. Get the details HERE.