How will the Change in Government Affect Your Business?
What is the Liberals' plan for businesses and will it affect yours?
It has been over a month since Justin Trudeau’s Liberal Government was sworn in. Now that the dust has settled, let’s take a look at the Liberals' plan for businesses, in specific their plans for Canadian small businesses. Business owners have expressed their concern and confusion about policies surrounding taxes, business growth and recruitment. Hopefully, we’ll be able to clear some of this up for you.
Am I going to have to pay more or less tax?
You should expect to pay less tax. The Liberal platform calls for a reduction in the small business tax rate, one that will drop from 11% to 9%. Another key element in the Liberals' plan for businesses is to ensure the CCPC (Canadian-Controlled Private Corporation) status is used correctly. In the past, some individuals have used the CCPC as an income splitting tool. This took away as much as $500,000,000.00 from Canadian small businesses every year. Which means small businesses will receive the money meant for them, further adding to the benefit of a small business tax rate reduction.
Will there be new opportunities to grow my business?
The answer is yes. The Liberals' plan for businesses contains several intentions to invest in Canadian innovation. The plan calls for a $200 million annual investment in the new innovation agenda. The government will use the funds and offer support to businesses looking to grow and export goods. On top of the aforementioned investment, an additional $300 million (over the next 3 years) will go towards the Industrial Research Assistance Program. This includes the Small Business and Innovation Research Program.
A portion of these funds will go towards modernizing and strengthening technological and commercial functions at post-secondary facilities. This means highly qualified employees will be entering the workforce. Overall, the Liberals' plan for businesses includes accelerating the potential of Canadian businesses. With a special focus on small and medium-sized businesses.
Will this change our ability to hire foreign workers?
The Liberal’s believe that for Canada to continue to improve, foreign talent needs to be welcomed. Canada is a diverse country; a melting pot of sorts and the Liberal Government plans to continue down that path. There are two key aspects to consider when looking at the Liberal’s immigration policy, and how it affects your business. First, a strong focus on family reunification is clear, with the budget doubling to aid efforts. Second, they stand behind express-entry.
This means for those who are looking to immigrate with family already in Canada (specifically siblings), the process will move much faster. There is also going to be a reform with regards to temporary work permits. The Liberal Government's goal is not to bring in quick labour; instead, they will focus on permanent immigration. Canadian businesses can look at this in two different ways; temporary workers will be harder to come by, and long-term employees will be easier to find.