The Canadian government recognizes it’s small and medium-sized businesses to be the main star. This is because they keep the main streets flourishing across the country. These small businesses create good-paying jobs, and deliver the dream of entrepreneurship. Therefore, by all means, the Canadian government deems it essential for these businesses thrive. This should be done so that they can continue being the bedrock of our communities and our economy.
Thus, keeping this in mind, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Rechie Valdez, Minister of Small Business, and the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, have announced a comprehensive suite of measures. The Canadian government has done this to help small- and medium-sized businesses start up, grow, and thrive.
Canadian Government: What Did The Federal Government Announce?
First, the federal Canadian government announced that the payment amounts for the new Canada Carbon Rebate for Small Businesses. This will deliver over $2.5 billion to about 600,000 Canadian businesses before the end of this year. This refundable tax credit will return a portion of the fuel charge. This proceeds from 2019-20 through 2023-24 to small businesses, in jurisdictions where the federal fuel charge applies. Eligible businesses that filed their 2023 tax return by July 15, 2024, will receive their payment by:
a. December 16, 2024, if registered for direct deposit from the Canada Revenue Agency; or,
b. December 31, 2024, if receiving payment by cheque.
To ensure all eligible businesses can receive their payments, the Canadian government is proposing to extend the deadline for businesses. This is for those who file their tax return from July 15, 2024, to December 31, 2024. The late filers would receive their payment at a later date, this will be subject to Royal Assent of the required legislation.
More on The Canadian Government…
The federal Canadian government announced a revised Code of Conduct for the Payment Card Industry in Canada. This has been done to protect over 1 million businesses that accept credit card and debit card payments from customers.
Starting on October 30, 2024, the revised Code will help businesses compare prices and offers from different payment processors. It will also shorten the complaint handling response time by nearly 80 percent to just 20 business days. Plus, all the major payment card network operators in Canada have agreed to the terms of the revised code. In it, certain obligations which are requiring complex or technical system changes will come into effect by April 30, 2025.
When Will The New Reduced Credit Card Transaction Fees for Small Businesses Take Effect?
The Federal Canadian government announced that new, reduced credit card transaction fees for small businesses will take effect on October 19, 2024. This will be more than 90 percent of small- and medium-sized businesses that accept credit cards. These businesses will receive lower rates and see interchange fees reduced by up to 27 percent.
Also, these fee reductions are expected to save eligible small businesses about $1 billion over five years. The federal government expects all members of the credit card industry. This on a wide scale is including that of payment processors, to pass these savings on directly to small businesses. The federal government negotiated and finalized new agreements with Visa and Mastercard. This on a wide scale is good as it helps to protect reward points offered to Canadian consumers.
Canadian Government: What Has The Administration Said On Small Businesses?
“Small- and medium-sized businesses are Canada’s economic engine, employing nearly two-thirds of all Canadian workers. We are making it cost less for businesses to start-up, grow, and thrive, so they can help our main streets flourish. By reducing the cost of accepting credit card payments, and returning more money to small businesses, Canadian entrepreneurs will be able to put more of their money towards growing their business and creating good-paying jobs.”
– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Small businesses are the backbone of our economy, and today, our government is once again delivering real, tangible support to help them thrive. The Canada Carbon Rebate will put $2.5 billion directly into the hands of nearly 600,000 small business owners across the country, while lower credit card fees will save small businesses an additional $1 billion over the next five years. Our message is simple: we have got your back, so you can focus on growing your business, creating jobs, and strengthening your communities.”
– The Honourable Rechie Valdez, Minister of Small Business
Conclusion
Thus, this is what the Canadian government has decided with reference to the small business owners. This on a wide scale is good as it will help to put various small businesses of various backgrounds to flourish.