Federal Government Proposes Tax Adjustments Following Speech from the Throne
The Department of Finance Canada tabled a notice of Ways and Means Motion in Parliament on May 27, 2025, proposing changes to federal tax laws. According to the department, the proposals include a middle class tax cut, changes to the Goods and Services Tax (GST) for first-time home buyers, and the removal of the consumer carbon price from law.
The Department of Finance Canada indicated that these measures were part of the legislative agenda announced after the 2025 Speech from the Throne.
According to details provided by the department, the proposed middle class tax cut is intended to provide relief for nearly 22 million Canadians, with potential savings for families of up to $840. The proposal to eliminate the GST applies to first-time home buyers purchasing new homes valued up to $1 million, with possible savings listed at up to $50,000 for eligible buyers. The department also proposed lowering the GST for new homes between $1 million and $1.5 million when purchased by first-time buyers.
The Department of Finance Canada stated that the removal of the consumer carbon price from law would become effective April 1, 2025, following its cancellation. Prime Minister Mark Carney and Minister of Finance and National Revenue François-Philippe Champagne issued statements regarding the proposed measures.