The Canadian government unveiled its 2025 budget on Tuesday, introducing several measures that could significantly impact the lives of many citizens. Among the notable changes are new regulations regarding bank branch closures, cheque cashing, and support for veterans.

One major change is the requirement for banks to provide advance notice of branch closures. This amendment to the Bank Act mandates that banks must post closure notices on their websites. Additionally, banks will not be allowed to charge account switching or closure fees for 12 months after announcing a branch closure. This measure aims to assist individuals in rural areas, where access to banking services can be limited. The government noted that this change will particularly benefit seniors and those living in remote locations, ensuring they have clear processes for opening accounts remotely.

The budget also addresses long-standing issues related to long-term care costs for veterans. A recent investigation revealed that many veterans may have been overcharged for accommodation and meals in long-term care facilities due to a misinterpretation of federal rules. In response, the government plans to clarify the methodology for calculating these charges retroactively. This change is intended to rectify past overcharges and improve the financial situation for veterans receiving care.

In another significant development, Canada Post will gain the authority to set its own postage rates. Previously, rate changes required cabinet approval, which could delay necessary adjustments. The budget legislation will deregulate this process, allowing Canada Post to establish rates independently. This change is expected to enhance the financial sustainability of Canada Post and improve service for Canadians, especially in underserved areas.

The government is also taking steps to protect consumers from predatory debt advisors. New regulations will introduce civil remedies for non-compliance with the Bankruptcy and Insolvency Act, targeting unlicensed advisors who mislead individuals into unnecessary bankruptcy filings. The budget proposes to increase maximum criminal fines for violations of this act, aiming to deter unscrupulous practices in the debt advisory sector.

Lastly, the budget includes provisions to ease cheque cashing for Canadians. The amount that banks must immediately release when a cheque is deposited will increase from $100 to $150. This change is designed to help low-income Canadians and seniors who often rely on cheque payments. The government acknowledged that the current rules have not kept pace with modern banking needs and inflation, and it plans to reduce the number of days banks can hold cheques before releasing funds, although specific timelines have not yet been detailed.

Overall, the 2025 budget outlines significant reforms aimed at improving banking services, supporting veterans, and protecting consumers in Canada. These changes reflect the government's commitment to addressing the needs of its citizens in a rapidly evolving financial landscape.