Budget 2025 Implementation Act, No. 2

Bill C-31, Budget 2025 Implementation Act, No. 2 · Report stage · now at report stage in the House Where it stands

What Bill C-31 would do

This budget implementation bill would change federal tax laws by delivering automatic benefits to lower-income individuals and adjusting business, excise, and international minimum tax rules. It would also ban most non-compete clauses under the Canada Labour Code and establish the Defence Investment Agency for military procurement. Additionally, the bill would transfer authority over air travel complaints to the Minister of Transport and make various other administrative changes across government.

Official text (opens in a new tab)

11 statements

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“Our government has strongly supported the military. Record numbers of people are applying to join, and we are increasing defence spending to two percent of our economy. We are also creating a public company to buy equipment fairly and efficiently. The opposition should admit that we have done more for the military recently than past governments did.”
Official Hansard

Mr. Speaker, all the bafflegab aside, let us look at the reality. Since the last federal election, when people chose our Prime Minister, there has been a solid, tangible commitment to the Canadian Forces to the degree that we now have a record number of people applying to be members of the forces. There has also been the increase to 2% of GDP. Bill C-40, which the member referred to, would create a Crown corporation to ensure that tendering is efficient and that Canadians are getting good value and, at the same, time transparency and accountability. Does the member not recognize that, in the last 18 months, the Prime Minister, in fact the government, has moved quicker on military than those in generations before us did?

John-Paul Danko, Hamilton West—Ancaster—Dundas

Liberal
“I agree with the member that tax limits for small businesses need to catch up with inflation. But Canada still has the lowest business tax rates in the G7, and this budget helps companies invest in better tools. Does the member think we are on the right track with any of this?”
Official Hansard

Mr. Speaker, unfortunately, I know the member opposite was really looking forward to hearing from the member for Winnipeg North. I did listen closely to his remarks. I really agree on some of the points he made about small business, in particular, the GST threshold and small business deduction limits. I think those are really important things that have not been adjusted for much too long. They have not been adjusted for inflation as well. At the same time, I think we also need to recognize that Canada has the most competitive business tax rates in the G7 and new measures like the productivity mega deduction are helping business invest in those productivity tools that they need. Is there anything where we are on the right track?

Danielle Martin, University—Rosedale

Liberal
“I want the House to pass this budget bill right away. It stops corporations from dodging taxes and makes big multinationals pay their fair share. It also lets the government file taxes automatically for low-income Canadians so 5.5 million people can get benefits they are missing. The bill also updates pesticide laws while keeping strong health and safety protections.”
  • A repeated line

    “Our government is focused on what we can control.”

    Said 10 times by 7 members since April 30.

    Every time it was said
Official Hansard

Mr. Speaker, it is a privilege to participate in today’s debate about Bill C-31, the budget 2025 implementation act, no. 2. This debate is very timely, as has already been pointed out in the House today, because budget 2026, as we all know, is only a few days away. Like all Canadians, I am worried about the circumstances in which our country finds itself. We are experiencing a trade war at the hands of what was once our closest ally. We are buffeted by the impact of armed conflicts in which we are happily not engaged, but which affect our lives in many ways, including through the price of goods. In my riding of University—Rosedale in downtown Toronto, people are concerned about the cost of groceries, the availability of housing, the threat of climate change and the accessibility of the social programs they rely on. They are counting on us to do all we can to protect Canada’s sovereignty and to stay true to Canadian values. In this context, as our Prime Minister has said many times, we are focused on the factors we can control. Happily, that list is a long one. There is much we can do to support one another and to build a more self-reliant economy that leaves no one behind. For this reason, I am eager to see what measures the next federal budget contains, and I am confident it will build on the important foundation that was presented a year ago in budget 2025. Passing Bill C‑31 would be a crucial legislative step forward in delivering on the priorities of budget 2025 and our plan to build a stronger, more resilient Canada. Our government is focused on what we can control: strengthening the Canadian economy, expanding our international trade partnerships, managing public finances responsibly and helping Canadians who are feeling the pressure of daily costs. Bill C-31 is a piece of legislation that I have become quite familiar with. As members of the Standing Committee on Finance, my colleagues, some of whom are in the House today, and I were tasked with reviewing and considering this bill at committee. As part of that process, our committee heard from a wide range of stakeholders, many of whom spoke positively about the bill and some of whom offered constructive feedback. I am proud to say that, in response to some of that feedback, as well as what I heard from constituents in my own riding, I was able to advance three amendments to Bill C-31, which were ultimately adopted by the committee. I will come back to those shortly, but I first want to speak to some of the important changes to the tax system that we find in this bill. A robust and efficient tax system is what allows the government to support Canadians, protect the essential services they rely on, and build necessary infrastructure, as well as millions of homes. Bill C-31 will implement key measures outlined in budget 2025 aimed at protecting the integrity and improving the efficiency of Canada’s tax system. Bill C-31 proposes numerous measures aimed at improving tax fairness. It would strengthen anti-avoidance rules to counter the actions of those who attempt to use sophisticated transactions to transfer their assets from one trust to another or to render their tax liabilities uncollectible. It would limit delays in the payment of refundable tax on investment income when corporations use multi-tiered corporate structures with different fiscal year ends. It would also implement the remaining major components of global minimum tax, which is intended to ensure that large multinational businesses pay their fair share, no matter where their profits are earned. However, let us not forget that our tax system does more than just collect money from those who owe it. It is also a mechanism for supporting those who need it most. I want to focus on a key part of the tax changes to Bill C-31 that would support people living on low incomes. That program is the commitment to automatic federal benefits and automatic tax filing found in this bill. An important aspect of tax fairness is ensuring that Canadians have access to all the support measures available to them. We know, for instance, that a disproportionate number of low-income Canadians do not file their taxes. This means that people who most need benefits often do not receive them. Bill C-31 proposes to allow the CRA to file a tax return on behalf of certain eligible individuals with low incomes in simple tax situations who do not owe tax and do not file themselves. Many people with low incomes in our country are missing out on benefits and credit payments because they cannot, for any number of reasons, fill out and submit their annual tax and benefit return. Often, they are unaware the government owes them money. Whether for reasons of literacy, illness, the chaos of life and poverty, or other legitimate priorities, they are not filing their taxes, and therefore, they are not getting money to which they are entitled. Because of this, seniors are losing out on benefits like the Canadian dental care plan. Single parents are not receiving the Canada child benefit to help make ends meet. Young people and workers are going without the Canada groceries and essentials benefit or the Canada workers’ benefit, which could ease their expenses for a week, a month or more. The most important determinant of health is a person’s income. In addition to being a financial policy, this would be a health intervention, an intervention that would benefit 5.5 million Canadians. I am personally very passionate about this opportunity. Indeed, we know that this bill would affect health through a wide range of mechanisms, so before my time concludes, I would like to shift my focus to another such part of the bill, which is the proposed amendments to the Pest Control Products Act. The Pest Control Products Act came out of necessity to protect the health of Canadians and our environment. It is an important piece of legislation that places the regulation of pesticides rightly in the hands of Canada’s Minister of Health. Through Bill C-31, the government seeks to make amendments to the act in order to reduce regularly scheduled reviews of low-risk products where nothing has changed since the last review while maintaining a focus on ensuring regular review of high-risk products or products where our understanding of risk has changed. While the goals of these amendments, such as improved efficiency and better use of limited resources, are laudable, we did hear from stakeholders who wanted us to be even more clear that health and environmental concerns remain the primary focus in the review process. This is why I introduced three amendments at the committee stage, which were ultimately adopted by the committee. These were the amendments: first, inserting language to ensure that, when conducting an assessment of a pest control product, the Minister of Health will apply a scientifically based approach and take into account government policy that prioritizes the precautionary principle; second, inserting language to clarify that subsection 17(1) of the Pest Control Products Act continues to apply, as this section of the act specifies that the minister must initiate a special review of a pesticide where they have reasonable grounds to believe that the health or environmental risks of the product are unacceptable; and third, adding a transparency requirement for the minister to make public any decision not to initiate a re-evaluation of a pest control product and the reasons for that decision within 90 days of the decision being made. I believe, as did my committee colleagues, that these amendments have strengthened an already strong bill. I hope this chamber feels the same way. In conclusion, the world beyond our borders is becoming increasingly uncertain, but Canada is confronting this reality from a position of strength. Bill C-31 would implement key measures from budget 2025 aimed at protecting the integrity of our tax system and making it fairer and more efficient. When we work continuously to improve our public institutions, that builds the public’s trust. I urge all members of Parliament to pass Bill C-31 without delay.

Danielle Martin, University—Rosedale

Liberal
“Our government is shifting our economy away from oil and toward renewable energy. We need to build the infrastructure for wind and water power. That is our focus right now.”
Official Hansard

Mr. Speaker, we are in the midst of a transition. We are moving from an economy that depended on the oil sector to a system based on renewable electricity and renewable energy. That is what we are focusing on right now as a government. We need to put the necessary infrastructure in place to make this transition to wind and hydroelectric power, which, incidentally, is very important in Quebec. For me, the most important thing is to build this infrastructure.

Louis Villeneuve, Brome—Missisquoi

Liberal
“My colleague is a family doctor and health expert. I want her to explain how a person's income affects their health.”
Official Hansard

Mr. Speaker, as members know, my colleague is a family doctor. She is an expert on public health policy. In her opinion, how does a person’s income affect their health?

Danielle Martin, University—Rosedale

Liberal
“People need enough income to buy what they need. Living in poverty and uncertainty hurts physical and mental health. Government benefits help fix this uncertainty, so this bill is also about protecting people's health.”
Official Hansard

Mr. Speaker, there are ways of ensuring that an individual’s or a family’s actual income is sufficient to purchase basic necessities. Obviously, that is very important for health. However, there is also the issue of uncertainty. People who are living in poverty live in uncertainty, and that also has an impact on their physical and mental health. Programs such as the Canada child benefit for Canadian families with children or the guaranteed income supplement for seniors across Canada are very important for reducing uncertainty. At the end of the day, this is not just a financial initiative, but a health initiative as well.

Danielle Martin, University—Rosedale

Liberal
“Budget bills cover a lot of areas, but they go to the finance committee for a full review. Our committee listened to experts and other members, and we took their feedback into account. I will vote for this bill.”
Official Hansard

Mr. Speaker, I thank the member opposite for the interventions she made at the finance committee on both bills, Bill C-30 and Bill C-31. The reality of a budget bill is that they are broad and touch on many aspects. However, they do come to the finance committee. I was happy, as a member of the committee, to hear the feedback we heard from a wide variety of experts, including the member opposite herself, on their concerns with respect to the regulations we are discussing. I feel that that feedback was taken into account. I am happy to say that I will be happily supporting the bill.

Marilyn Gladu, Sarnia—Lambton—Bkejwanong

Liberal
“Our military is out of supplies, so we must quickly buy planes, boats, and weapons. I am asking the member if he agrees that we need to spend this money to defend Canada.”
Official Hansard

Mr. Speaker, I think the member opposite would agree that we are at a stage in our defence where the cupboard is bare and we have to quickly procure all the things that are needed. We are buying planes, we are buying boats and we are buying munitions. There are all kinds of efforts on the go. Does he not feel that we need to put resources in place to put us in a place where we can better defend the country?

Marilyn Gladu, Sarnia—Lambton—Bkejwanong

Liberal
“The member talked about the buildings and infrastructure his community needs. Our government has set up funds to help pay for these projects. Has he looked into applying for them?”
Official Hansard

Mr. Speaker, I thank the member opposite for his speech. I admire his passion for his community. He has pointed out a number of the buildings and things that are needed from an infrastructure point of view. Our government has put in place the build communities strong fund. I would suggest he look to the local impact fund and also the direct delivery stream. There is a provincial stream as well. Has he looked at those?

Marilyn Gladu, Sarnia—Lambton—Bkejwanong

Liberal
“I want the member to tell the House what he wants to see in the 2026 budget.”
Official Hansard

Mr. Speaker, I congratulate Isabelle Garon on her new role. It is a good thing when several members of a family serve the people. In my family, my great-uncle was the member for Charlottetown. We are currently debating budget 2025. The member said that the government sometimes listened to the Bloc Québécois’s recommendations and included them in the budget. What would he like to see in budget 2026?

Kevin Lamoureux, Parliamentary Secretary to the Leader of the Government in the House of Commons

Liberal
“The parties have talked, and I am asking everyone to agree to pass this committee report now instead of holding a delayed vote.”
Official Hansard

Mr. Speaker, I rise on a point of order. There have been discussions among the parties, and if you seek it, I think you will find unanimous consent for the following motion: That the order made yesterday pursuant to Standing Order 97.1(3) respecting the deferral of the recorded division on the motion to concur in the ninth report of the Standing Committee on Justice and Human Rights be discharged and the motion be deemed adopted on division.

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