New Canadian laws and rules coming in 2024, and how they’ll affect you

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A new year often brings new federal regulations and rules. In 2024, there will be a slew of new laws that come into effect – some as early as Jan. 1 – including changes to Canada Revenue Agency’s tax rules, increases to hourly minimum wages, timelines for Ottawa’s dental insurance program and changes to the country’s bail system.

Here is a breakdown of the new federal and provincial laws coming this year, and how they will affect you.

New CRA tax rules

From remote worker changes to payroll deductions, here’s what to look out for this year when it comes to the CRA’s latest tax rules.

REMOTE WORKERS’ PROVINCE OF EMPLOYMENT

The CRA has issued a new administrative policy, effective Jan. 1, 2024, providing guidance on how to determine a remote worker’s province of employment for payroll purposes. If a remote worker’s province of employment and province of residence are different, they could be subject to more or less payroll tax withholdings. The new measures aim to determine the correct province to file the employee’s income taxes, pension and employment insurance.

TFSA CONTRIBUTION LIMIT

The annual contribution limit for tax-free savings accounts rose to $7,000 on Jan. 1, compared with $6,500 in 2023. That means if you’ve never contributed to a TFSA and were born in 1991 or earlier, you would have a cumulative TFSA contribution limit of $95,000 as of January.

The TFSA program, which allows investors to avoid being taxed on capital gains and withdrawals, always increases with inflation. Its original cap when the program was introduced in 2009 was $5,000.

RRSP CONTRIBUTION LIMIT

The CRA imposes an annual limit on how much Canadians can deposit into their registered retirement savings plan account. The limit in 2024 remains 18 per cent of the previous year’s income, but the maximum contribution is now $31,560 instead of the $30,780 permitted in 2023.

New year, new policies: what’s changing for personal finance in 2024

CPP AND EI PAYROLL DEDUCTIONS

Canadians can expect higher Canada Pension Plan and Employment Insurance deductions on their paycheques in 2024. CPP contributions are rising as part of a six-year plan to enhance contributions and benefits. The CPP contribution rate for 2024 will remain at 5.95 per cent, but the estimated maximum contribution is $3,867, up from $3,754 in 2023. In Quebec, the QPP contribution rate is up 6.4 per cent to $4,348 for 2024.

The federal government also announced a second CPP tax beginning in 2024 that will only affect workers whose income is above the first earnings ceiling. The CPP2 contribution will apply to pensionable earnings between $68,500 and $73,200, with a maximum contribution of $188 in 2024. The 2024 self-employed CPP2 contribution rate will be 8 per cent, and the maximum self-employed contribution will be $376.

Employment Insurance premiums are rising, too, with a federal contribution rate for employees of 1.66 per cent up to a maximum of $1,049.12. In 2023, the maximum contribution for federal EI was $1,002.45. Meanwhile, employers will pay a maximum of $1,468.77 into EI in 2024.

The Quebec Pension Plan tax rate is also increasing in 2024, with the government adding another component to the extra plan created in 2022. This means that employees and employers each pay $4,348 into the QPP in 2024.

Minimum wage increases

The minimum hourly wage in some provinces will increase in 2024.

• Prince Edward Island will increase its minimum wage by $0.40 to $15.40 on April 1. It will be increased by another $0.60 to $16 on Oct. 1.
• Nova Scotia’s minimum wage, which is currently $15 per hour, will be adjusted on April 1 with inflation, plus an additional 1-per-cent annually.
• Ontario plans to increase its minimum wage on Oct. 1, continuing its annual practice of adjusting the wage around this time each year. The minimum wage in Ontario is currently $16.55 per hour.

Federal dental insurance plan

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The federal government has released new timelines for its national dental insurance program. Seniors aged 87 and over were allowed to apply starting last month. The program will be expanded to seniors aged 77 to 86 in January, seniors aged 72 to 76 in February and seniors aged 70 to 71 in March.

Seniors aged 65 to 69 will not be able to apply until May. Persons with a valid Disability Tax Credit certificate and children under 18 will be able to apply online as of June. All remaining Canadians who meet the income eligibility requirements will be able to apply in 2025.

Canadians who have applied, qualified and are enrolled in the expanded benefit will be able to start receiving oral health care as soon as May.

Work hour exemptions for certain sectors

As of Jan. 4, new amendments to the Canada Labour Code (CLC) will come into force for certain employees working in the banking, telecommunications and broadcasting, rail transportation and airline sectors. In order to address work-life balance and provide more predictability in relation to their hours of work, the changes will create exemptions in regards to unpaid breaks, rest period between shifts, and notice requirements for work schedules and shift changes.

Specifically, the new provisions would require employers to provide their employees:

• at least 96 hours’ written notice of their work schedules
• at least 24 hours’ written notice of shift changes or additions
• an unpaid break of at least 30 minutes during every period of five consecutive hours of work
• a rest period of eight consecutive hours between work periods or shifts

The changes come into effect for most sectors on Jan. 4 and for airlines on June 4.

Termination entitlements for federally regulated workers

As of Feb. 1, some employees working for federally regulated organizations will be entitled to greater termination entitlements when terminated without cause. The amendments, under the Canada Labour Code, would expand the amount of working notice (or pay in lieu) that an employer must provide to an employee for without-cause termination.

Currently, employers must give an employee with at least three months of service two weeks of notice or pay in lieu. The changes, however, would be calculated as following:

• Three months of service = two weeks notice (pay in lieu equivalent)
• Three years of service = three weeks notice (pay in lieu equivalent)
• Four years of service = four weeks notice (pay in lieu equivalent)
• Five years of service = five weeks notice (pay in lieu equivalent)
• Six years of service = six weeks notice (pay in lieu equivalent)
• Seven years of service = seven weeks notice (pay in lieu equivalent)
• Eight years of service and more = eight weeks notice (pay in lieu equivalent)

Changes to Canada’s bail system

The federal government recently made changes to Canada’s bail system that “seek to improve the safety of people and communities” across the country. As of Jan. 4, the amendments make targeted changes to the Criminal Code’s bail regime to address serious repeat violent offending with firearms, knives, bear spray and other weapons.

Among the changes are the creation of a new reverse onus – shifting the burden of proof onto the accused in regards to demonstrating to the court why they should or should not be granted bail – to target serious repeat violent offending involving weapons; expanding the list of firearms offences that trigger a reverse onus; and broadening the reverse onus targeting repeat offenders of intimate partner violence.

Changes to Canada’s medical assistance in dying law

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Changes to Canada’s medical assistance in dying (MAID) law will come into effect on March 17, and will permit people with a mental disorder as their sole condition to be eligible.

Parliament passed an updated version of its MAID law in 2021 that expanded eligibility to people who only have a mental illness, and included a two-year sunset clause before it would take effect. Last year, Parliament passed legislation to add one more year to the sunset clause, so that the provision would take effect in March.

When that option arrives, Canada will have one of the most liberal euthanasia laws in the world, joining only a few other countries that allow assisted dying for mental illness. It will be the most controversial expansion of MAID since a Supreme Court ruling led the federal government to legalize euthanasia in 2016. The Globe’s Erin Anderssen reported last year that the mental-health community and doctors remain deeply divided on the issue.

Anti-forced labour legislation comes into effect

The new Forced and Child Labour in Supply Chains Act will take effect on Jan. 1, requiring businesses and federal government bodies to release reports that detail efforts to prevent child labour in their supply chains.

Businesses must report by May 31 on specific details and steps taken in its previous financial year to help prevent and reduce forced labour. Those who fail to make the reports or share misleading statements will face penalties. In addition, the reports must be approved by the board of directors and be made available to the public.

Changes to the federal carbon tax

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On April 1, the federal carbon tax will increase to $80 a tonne of carbon dioxide equivalent, from $65 a tonne in 2023. The price is set to rise by $15 a tonne annually for an eventual target of $170 a tonne in 2030.

The increase means consumers will pay 17.6 cents a litre of gasoline in fuel charges in 2023, about 3.3 cents higher than last year. According to a Parliamentary Budget Officer report, the carbon tax will cost the average household between $377 and $911 in 2024-25, even after rebates.

Prime Minister Justin Trudeau also announced last year that Ottawa will increase the rebate on carbon pricing for rural Canadians and lift the carbon price off of home heating oil entirely for the next three years. The new rules would apply to the Prairie provinces, Ontario and Atlantic Canada to address affordability concerns. According to a report from the Canadian Taxpayers Federation, the exemption means that households using furnace oil will pay 17 cents per litre less until April, and then 21 cents per litre less afterward.

Canada’s digital service tax on foreign tech companies

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The digital services tax aimed at foreign tech companies generating revenue from Canadian users is expected to go into effect in 2024. Ottawa announced legislation that paves way for the implementation of the 3-per-cent levy, but a date has not been set.

The measures target online marketplaces, social media platforms and earning revenue from online advertising, such as Amazon, Google, Facebook, Uber and Airbnb. The bulk of those companies are based in the U.S. The levy, however, is deeply unpopular in the United States, where critics say it unfairly targets the U.S. tech sector.

The digital tax was part of the Liberal election platform during the 2019 campaign, but the government delayed its implementation until 2024 in order to give more time for countries to establish a broader, multinational taxation plan through the Organization for Economic Co-operation and Development.

Canada’s new reporting rules for digital platform operators

Canada’s new reporting rules for digital platform operators take effect on Jan. 1. The rules require digital platform operators to conduct “due diligence procedures” such as collecting information on sellers offering accommodation, transport and personal services. The operators must also report that information to tax authorities.

Canada’s alcohol escalator tax

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On April 1, alcohol taxes on beer, wine and spirits will increase by 4.7 per cent. According to the Canadian Chamber of Commerce, taxes already account for about 47 per cent of the price of beer, 65 per cent of the price of wine and 80 per cent of the price of spirits. The alcohol escalator tax is expected to cost Canadian taxpayers about $100 million in 2024-25.

Province-specific regulations

Quebec

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Implementing the out-of-province tuition hike

Quebec announced last year that it will implement a tuition hike for out-of-province anglophone students who want to study at the province’s English-language institutions – Bishop’s, Concordia and McGill.

Starting in fall 2024, fees for Canadians from other provinces will jump from $8,992 to around $12,000. The new fees would apply to undergraduate and professional graduate degrees, but not to research-based graduate degrees.

The province also announced minimum tuition fees of $20,000 for international students, but universities will retain the right to charge additional discretionary fees. Last month, McGill announced it will offer scholarships to Canadian students from outside Quebec to cover the cost of the out-of-province tuition increase.

Requiring French tests for economic immigration programs

Quebec’s Experience Program, a program for temporary foreign workers or foreign students who have graduated in the province, will start requiring the former group to pass a French test to renew their work permits. As of Nov. 23, participants must complete a French program of study or successfully complete three years of full-time secondary or post-secondary studies in French.

Editor’s note: This article has been updated to clarify that out-of-province students attending anglophone universities in the province of Quebec will see tuition rise to $12,000 starting next year. The government had previously announced an increase to $17,000.

Ontario

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Child care pickup and drop-off policies

As of Jan. 1, the province will require all child-care operators to develop a policy outlining what steps they will take to closely monitor when a child does not arrive or is not picked up as expected. The changes are intended to prevent the rare, but horrendous deaths of young children inadvertently left in hot cars.

Safe arrival systems have long been in place in schools, where children are as young as three or four when starting junior kindergarten, but not in child-care settings, where children are younger and more vulnerable.

Tow-truck industry changes, including customer rights

Several changes to the tow-truck industry are set to come into force, including new customer rights. Those will include the right to provide consent to tow a car, where it will be towed, access to the vehicle after the fact, and rights related to invoices and payments.

The province will also take over the tow-truck licensing regime from municipalities and will require certification of all towing operators and vehicle storage companies.

Patient health information rules

New regulations that took effect on Jan. 1 allow Ontario’s Information and Privacy Commissioner to fine individuals or organizations who inappropriately access or share a patient’s personal health information.

Construction, alcohol purchasing and invasive species

The province is updating the Occupational Health and Safety Act to increase safety for crane operators on construction sites. Two new regulations taking effect will help ensure cranes are installed properly and inspected and maintained regularly.

Ontario is also extending rules governing the purchase of alcohol across provincial borders. Consumers will be allowed to buy alcohol directly from businesses in other provinces until Jan. 1, 2026.

The government is also adding several organisms to the invasive species list in the new year, including killer shrimp, most crayfish and several plants such as the tree of heaven.

Alberta

Alberta landlords to pay interest on security deposits

As of Jan. 1, Alberta landlords will need to pay tenants annual interest on security deposits. Since 2009, the interest rate on security deposits has been zero. But now, under the Residential Tenancies Act and Mobile Home Sites Tenancies Act, the interest rate is 1.6 per cent.

According to the government’s online calculator, a tenant who paid a $1,000 damage deposit will be entitled to $16 from their landlord by the end of 2024.

British Columbia

B.C. implements new obligations for employers when their workers are injured

The B.C. government is widening an employer’s obligations when a workplace injury occurs. Businesses that employ 20 or more people will be required to make necessary changes to the workplace and outline a return-to-work plan for the employee’s former job, or something comparable.

With reports from Salmaan Farooqui, Joe Friesen, Frédérik-Xavier Duhamel, Erin Anderssen, Samantha Edwards, Marieke Walsh and The Canadian Press