The 2025 federal budget has been announced, revealing several changes that could impact the daily lives of Canadians. From adjustments in banking policies to tax cuts, here are the main highlights.

One significant change is the increase in the amount of money available immediately from deposited cheques. The budget proposes raising this limit from $100 to $150. The document states, "Access to cheque fund rules are now over a decade old and have not kept pace with cost-of-living increases or technological advances." Additionally, the budget aims to reduce the number of days banks can hold deposited cheque funds before releasing them to customers. It also plans to raise the threshold for shorter hold periods from $1,500.

In a move affecting higher-end purchases, the budget eliminates a luxury tax on airplanes valued over $100,000 and boats worth more than $250,000. This tax, introduced in 2022, was set at 10% of the total value or 20% of the value above the threshold. However, cars valued over $100,000 will still be subject to this tax.

The budget also addresses issues with unlicensed debt advisors, often referred to as lead generators. These individuals can mislead consumers into unnecessary bankruptcy filings for a fee. The budget outlines plans to increase penalties for non-compliance with the Bankruptcy and Insolvency Act. The maximum criminal fines will rise from $5,000 to $100,000 for individuals and from $5,000 to $1 million for corporations.

Another notable change involves Canada Post. Currently, the Canada Post Corporation Act requires approval from the Governor-in-Council for stamp price increases, a process described as lengthy. The new budget proposes amendments that would allow Canada Post to set its own postage rates, which is expected to enhance its financial sustainability.

The budget also addresses the decline in bank branches across Canada. The Canadian Bankers Association reports a 9% decrease in bank branches from 2012 to 2022. To combat this, the budget proposes amendments to the Bank Act, requiring banks to provide public notice of branch closures on their websites. It will also prohibit certain account switching or closure fees for 12 months following a closure notice. Furthermore, the government plans to review various bank fees, including those for Interac e-transfers and ATM usage, stating, "We will use every tool and agency at our disposal to address any unjustified fees and pain points for Canadians."

Lastly, the budget includes a tax cut for the middle class. The government plans to reduce the lowest marginal personal income tax rate from 15% to 14%, effective July 1, 2025. This rate applies to the first $57,375 of an individual’s taxable income, with potential savings of up to $420 per person and $840 per couple by 2026.