How the 2022 federal budget impacts you

The federal government unveiled its highly-anticipated spring budget on Thursday, with a focus on trying to make life more affordable for Canadians while attempting to rein in pandemic-level spending.

CTVNews.ca analyzed the document and identified key items that, if passed in Parliament, would aim to bring relief to some would-be home owners, support those struggling with dental bills, help incentivize greener choices, progress reconciliation and inclusivity, and provide some solace to Canadians concerned about an increasingly unstable world sparked by the war in Ukraine.

Here’s how the Liberals’ budget may impact or be of interest to you:

Are you struggling to afford a home?

$40,000

lifetime limit

Tax-Free First Home Savings Account

Doubling

 

First-Time Home Buyers’ Tax Credit amount to $10,000

$4B

over the next five years

to launch a new Housing Accelerator Fund

The budget acknowledges that Canadians are struggling with the costs of living and, namely, the ability to afford a home. The Liberals attribute this problem primarily to a supply shortage and have committed to double construction of new housing over the next decade through Budget 2022 initiatives in conjunction with provincial and municipal programs. In the interim, they’ve targeted a few programs directly at Canadians to help with soaring home costs.

  • To help Canadians under 40 purchase their first home, the government is introducing a new Tax-Free First Home Savings Account to be able to set aside up to $40,000 as early as 2023. The budget estimates this proposal would cost $725 million.
  • The Liberals also intend to double the First-Time Home Buyers’ Tax Credit amount to $10,000 to help with steep closing costs. It would put approximately $1,500 back in Canadians’ pockets and would apply to homes purchased on or after Jan. 1, 2022. This initiative has a price tag of $675 million.
  • The budget also announces an extension of the First-Time Home Buyer Incentive, which acts as a shared-equity mortgage with the federal government, to March 31, 2025.
  • On affordable housing, the government is proposing to distribute $4 billion over the next five years to the Canada Mortgage and Housing Corporation (CMHC) to launch a new Housing Accelerator Fund. The goal is to create 100,000 net new housing units. The CMHC will receive another $1.5 billion over two years to extend the Rapid Housing Initiative. This is expected to create at least 6,000 new housing units.
  • The government’s pre-announced efforts to implement a Home Buyers’ Bill of Rights, to end blind bidding and ensure better transparency of sales history, will get a $5 million cash infusion over two years.

Is the cost of dental care a burden?

$5.3B

over the next five years

to establish a national dental care plan

Kids under 12

 

would be covered in 2022, as currently drafted

2025

 

is when the program is expected to be fully implemented

One of the big-ticket items in Budget 2022 is a proposal to establish a national dental care plan, which the Liberals had already agreed to prioritize following the signing of their confidence-and-supply agreement with the NDP. As it stands today, a third of Canadians don’t have insurance for dental care.

  • The government has assigned $5.3 billion to Health Canada over the next five years to oversee implementation of the dental care plan.
  • Only those under 12 years old will get first access in 2022. The program will expand to under-18 year olds, seniors, and people living with a disability in 2023. If you don’t fit into one of those categories, you’ll have to wait until 2025.
  • It will also be restricted to families with an income of less that $90,000 annually, with no co-pays for those with annual income under $70,000.

Do you want to contribute to the fight against climate change?

$1.7B

over five years

to extend the Incentives for Zero-Emission Vehicles

$400M

over five years

to build ZEV charging stations in suburban and remote communities

The climate crisis and enhancing the green economy takes up a sizeable chunk of Thursday’s budget. Beyond business investments and industry incentives, the document strives to make green energy choices more attractive to Canadians.

  • The government is proposing to allocate $1.7 billion over five years, with $800,000 in remaining amortization, to Transport Canada to extend the Incentives for Zero-Emission Vehicles program until March 2025. The program, which has offered purchase incentives of up to $5,000 since 2019, would also be expanded to include more vehicle models, including vans, trucks, and SUVs.
  • The budget also lays out steps to increase the amount of zero-emission vehicle charging stations. The Canada Infrastructure Bank will invest $500 million, already set aside, in urban and commercial charging infrastructure. Meanwhile, Natural Resources Canada will see a $400 million investment over five years to do the same in suburban and remote communities.

Are reconciliation and diversity priorities for you?

$4B

over six years

to ensure First Nations children receive support, in accordance with Jordan’s Principle

$209.8M

over five years

to locate and memorialize burial sites at former residential schools, among other things

$398M

over two years

to support infrastructure development on reserves, including water infrastructure

The government maintains its commitment to Indigenous reconciliation in Budget 2022, with a key focus on First Nations children’s wellbeing. The Liberals also intend to prioritize existing programs that enhance diversity and inclusion.

  • The document sets aside $4 billion over six years to ensure First Nations children receive the support they need in accordance with Jordan’s Principle. Another $87.3 million over three years will go towards supporting provinces and territories to build out Indigenous child welfare laws.
  • To document, locate, and memorialize burial sites at former residential schools, aid in the creation of a new National Centre for Truth and Reconciliation, and ensure the disclosure of federal documents related to residential schools, the government is allocating $209.8 million over five years. 
  • Several millions more have been assigned to protect and preserve unmarked burial sites, digitize archives, and commemorate former residential school sites.
  • Budget 2022 also proposes $398 million in new spending over two years to Indigenous Services Canada to support infrastructure development on reserve, of which at least $247 million will be directed toward water and wastewater infrastructure.
  • Employment and Social Development Canada will receive $50 million over two years to bolster the Supporting Black Canadian Communities Initiative, while the Department of Canadian Heritage will see $85 million over four years go towards the launch of the Anti-Racism Strategy and National Action Plan on Combatting Hate.
  • $100 million over five years is intended to support the implementation of the forthcoming LGBTQ2 Action Plan. Last year the government conducted a survey to help identify issues facing LGBTQ2 people in Canada, which is expected to inform an eventual plan.

Are you worried about the war in Ukraine and Canada’s role in conflicts abroad?

$500M

more in fiscal year 2022

in further military aid to Ukraine

$1B

 

in new loan resources will also be offered up to the Ukrainian government

$6.1B

over five years

to the Department of National Defence

Budget 2022 addresses the mounting global angst as result of Russia’s invasion of Ukraine earlier this year. The government acknowledges that not only will the crisis continue to have a major economic impact in the months to come, but it will also shift Canada’s position on the world stage.

  • In addition to the humanitarian aid, weaponry, and financial assistance that the government has already provided to Ukraine, the Liberals have pledged to distribute $500 million more in fiscal year 2022 in further military aid.
  • Up to $1 billion in new loan resources will also be offered up to the Ukrainian government through the new Administered Account for Ukraine at the International Monetary Fund.
  • On the Canadian defence front, Budget 2022 outlines a new $6.1 billion investment over five years, with $1.3 billion in remaining amortization, and $1.4 billion ongoing, to the Department of National Defence. The government wants to see this money go towards key defence priorities including: continental defences, commitments to allies, and investments in equipment and technology.

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