Sprinkled throughout Tuesday’s budget and its digital-only annexes are several measures that could impact the lives of many Canadians.
Here are five of the most interesting.
In recent years, many banks have been closing branches – something that hits particularly hard in some rural areas of the country, where it can be a long drive from one branch to another. The Canadian Bankers Association says the number of bank branches dropped by nine per cent over a decade from 6,205 in 2012 to 5,656 in 2022. Since then, the number has continued to drop.
The budget will amend the Bank Act to “require that banks provide public notice of branch closures on their websites” and “to prohibit the charging of certain account switching or closure fees from the time the bank gives notice of its intent to close a branch until 12 months following their branch closure.”
The government will also tighten up the rules to require that branches have sufficient processes to authenticate identification documents when opening accounts for people who aren’t physically present at a branch.
In its explanatory notes, the government says the measure will particularly help seniors and Canadians who live in rural and remote areas.
“This amendment will help ensure that such groups have clear processes for opening bank accounts remotely and are protected from unfair barriers when changing banking services after the closing of a local branch.”
The federal government and many Canadian veterans have been at odds in recent years over the costs veterans pay for accommodation and meals in long term care. The cost is supposed to be set at a level equal to the lowest cost of room and board in the least expensive province, but in 2024, CBC News revealed that a misinterpretation of federal rules may have caused tens of thousands of Canadian veterans to be overcharged for long term care since at least 2005.
The discovery prompted a class action suit against the federal government.
In the budget, the government is clarifying the rules – retroactively.
The government is proposing changes to the Department of Veterans Affairs Act and its regulations “to clarify the methodology used to calculate the accommodation and meals charge in the long-term care program on both a retroactive and go-forward basis.”
The government will also “clarify and make explicit” that Veterans Affairs had the authority to prorate certain indexation adjustments in calculating the now repealed earnings loss benefit under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
Meanwhile, in the main text of the budget, the government is promising faster service for veterans and plans to reduce its reimbursement for medically prescribed cannabis from $8.50 to $6 per gram.
It’s something Canada Post has wanted for years.
While Canada Post proposes changes to the prices Canadians pay to send a letter or a package, the actual decision has traditionally been made by cabinet, following consultation. It’s a process that can take time.
In September, Joël Lightbound, the minister responsible for Canada Post, announced a number of measures to transform Canada Post’s operations and said the government was “reviewing” the process for increases to the price of stamps.
In a budget annex, the government reveals that Canada Post is about to get its wish: the budget legislation will deregulate the setting of postal rates, leaving it to Canada Post to set the rates.
“This measure is expected to benefit all Canadians by helping improve the future financial sustainability of Canada Post operations,” the government wrote. “Canadians across all regions of the country, including in remote and underserved communities, who rely on the delivery of letter mail by Canada Post, will be positively impacted.”
Cracking down on unscrupulous individuals who prey on those drowning in debt is a problem the government has been trying to solve for a while.
In its 2024 fall economic statement, the government said unlicensed debt advisors, sometimes called lead generators, convince those in debt to declare bankruptcy in exchange for payment, falsely marketing themselves as licensed trustees.
“These actors may sometimes encourage Canadians to file a consumer proposal or for bankruptcy without fully disclosing the implications of such actions,” it wrote. “When filed unnecessarily, insolvency proceedings can increase the costs of unnecessary fees and fines, [and] the longstanding perpetuation of a borrower’s cycle of debt.”
In Tuesday’s budget annex, the government unveiled plans to tackle the problem.
“To protect Canadians from receiving irresponsible advice from unlicensed debt advisors, the government proposes to add civil remedies, including restitution, for non-compliance with the Bankruptcy and Insolvency Act.”
The government will also increase the maximum criminal fines under that legislation from $5,000 to $100,000 for individuals and to $1 million for corporations.
Opposition parties react to federal budget
For many Canadians who still rely on payments by cheque, it can be annoying: you deposit a cheque, and the bank holds it for several days, only paying out a maximum of $100 when you cash it.
The budget will change that, raising the amount banks have to pay out right away when you deposit a cheque to $150.
In the budget, the government says the current rules governing access to funds paid by cheque are decades old and haven’t kept pace with either technology or inflation.
“Increasing the amount of cheque funds available immediately would benefit low-income Canadians and seniors by helping to reduce reliance on costly short-term credit, such as payday loans or overdraft protection or avoid non-sufficient funds fees,” the government wrote.
“These groups are more likely to receive wages or benefits by cheque and have limited savings or credit access.”
The government also plans to reduce the number of days a bank can hold a cheque before releasing the funds but did not spell out how many days banks will still be allowed to hold a cheque before giving clients access to the funds.
A first look at the 2025 federal budget
