The Canadian government presented the spring economic update on April 28. While many of the measures were anticipated, this is our expert analysis of those we feel will most affect Canadians:
How is the Canada Pension Plan changing?
Update 2026 proposes to introduce legislative amendments to the Canada Pension Plan, implementing a reduction in the base CPP contribution rate from 9.9% to 9.5%, effective January 1, 2027.
How could this affect Canadians? Starting in 2027, you can expect to see lower CPP deductions from your paycheque: about $133 per year on a $70,000 salary (with similar savings for employers).
How is the Disability Tax Credit changing?
Update 2026 proposes to make the Disability Tax Credit (DTC) easier to access by streamlining applications for certain long‑lasting medical conditions, expanding who can certify eligibility and reducing the administrative burden, while leaving the eligibility criteria unchanged.
How could this affect Canadians? For those with a qualifying condition, it may be easier and faster to qualify for the DTC and access related benefits, like the Registered Disability Savings Plan, Canada Disability Benefit and Child Disability Benefit.
What is happening to the Home Buyers’ Plan?
Update 2026 proposes to extend the current repayment grace period under the Home Buyers’ Plan (HBP). Specifically, it would allow individuals making their first HBP withdrawal by the end of 2028 to continue to benefit from a five‑year grace period before repayments must begin, instead of the usual two years. Thus, the 15‑year repayment period would begin in the fifth year following the year of the first withdrawal.
The Home Buyers’ Plan allows eligible buyers to withdraw up to $60,000 from their RRSP to buy or build a qualifying home without immediate tax. Withdrawals must be repaid over up to 15 years, with unpaid amounts included in income.
How could this affect Canadians? This measure could ease financial pressure during the early years of home ownership by postponing HBP repayments.
What changes are being made to the labour mobility deduction for tradespeople?
This deduction allows eligible tradespeople and apprentices working in the construction industry to deduct eligible temporary relocation expenses required for them to perform their duties of employment. The maximum claim is limited to 50% of the individual’s employment income in respect of the relocation.
Update 2026 proposes increasing the annual deduction limit from $4,000 to $10,000 and reducing the distance requirement from 150 km to 120 km closer to each temporary work location than the taxpayer’s ordinary residence. These changes would apply for the 2026 and later taxation years, with annual indexation of the increased deduction limit.
How could this affect Canadians? Those working in the construction industry and temporarily relocating can potentially deduct more expenses against income.
How is the Employee Ownership Trust tax exemption changing?
Update 2026 proposes that an existing temporary exemption from taxation of up to $10 million on capital gains realized by an individual on the sale of a business to an employee ownership trust or worker co-operative, corporation be made permanent. This measure was set to end at the end of 2026.
How could this affect Canadians? This measure may broaden succession options for retiring entrepreneurs.
What is the new Apprentice Training Grant?
Update 2026 proposes to introduce a new Apprenticeship Training Grant, that will provide apprentices with a weekly income top-up of $400 while they’re attending mandatory in-class technical training. Up to $16,000 per apprentice will be available, in addition to Employment Insurance. Additionally, a one-time $5,000 completion bonus will be provided to apprentices obtaining certification in a Red Seal trade.
How could this affect Canadians? This grant can remove financial barriers experienced during on-the-job training.
What is the Canada Strong Fund?
It is a Canada-wide sovereign wealth fund, with the money to be used to fund large national projects. It is “essentially, a national savings and investment account,” according to Mark Carney. It will be used to fund projects that could include infrastructure, energy and manufacturing, among others. The government will invest $25 billion over three years.
How could this affect Canadians? While its framework is still to be finalized, Canadians will be able to invest in the fund, in a similar way to investing in a government bond.
Why is the government banning crypto ATMs?
Crypto ATMs have been used by fraudsters to scam Canadians out of millions of dollars, according to the RCMP. To prevent this, the government will ban crypto ATMs, as part of a number of measures it plans to introduce to combat financial crime.
How could this affect Canadians? Fewer Canadians will be defrauded by would-be scammers with the eradication of thousands of crypto ATMs.