On November 4, 2025, Finance Minister François-Philippe Champagne tabled the 2025 Federal Budget under the theme Canada Strong, with a clear focus on affordability, productivity, and clean energy investments. Here are the key tax and policy updates that matter most to individuals, businesses, and investors:
CRA to auto-file for low-income Canadians
Starting with the 2025 tax year, CRA may automatically file returns for eligible low-income individuals — unless they opt out.
New refundable tax credit for personal support workers
A 5% credit (up to $1,100) for qualifying employment in regulated health care establishments.
Top-up credit to offset tax credit shrinkage
To ensure taxpayers aren’t disadvantaged by the 2025 rate drop, a top-up credit will preserve the 15% rate on non-refundable credits above $57,375.
Accelerated CCA + Super-Deductions Extended
The reinstated "Productivity Super-Deduction" offers up to 3x normal CCA rates and 100% expensing on key assets through 2029, including:
Dividend Refund Rule Changes for Corporate Groups
Dividends between affiliated companies may now delay refund entitlements unless specific timing rules are met.
SR&ED Limit Raised to $6M
Enhanced 35% tax credit now applies to up to $6M for qualifying CCPCs (up from $3M).
Worker Misclassification Crackdown
CRA will receive new funding and data-sharing powers to target "contractor" abuse — especially in trucking.
Expanded Credits for Critical Minerals & Clean Tech
More minerals now qualify for the 30% exploration and clean manufacturing credits.
CCUS Credits Extended to 2035
Carbon capture investments get full credits for five more years.
Sales & International Tax
Read our Budget Commentary PDF for detailed tables, timelines, and implementation dates: Download Now
If you have questions about anything covered in this issue, don’t hesitate to get in touch.
