Canada’s Bill C-30 Receives Royal Assent, Implementing Spring Economic Update Measures
Bill C-30 received Royal Assent on June 19, 2026, enacting cost-reduction measures including a fuel tax suspension, enhanced labour mobility deductions, and lower CPP contribution rates starting in 2027.
On June 19, 2026, Bill C-30 received Royal Assent in Canada, officially implementing the provisions outlined in the Spring Economic Update tabled on April 28, 2026. The legislation introduces a series of measures aimed at reducing costs for Canadians, supporting workers, and providing relief to specific sectors.
A key component of the bill is the suspension of federal fuel excise taxes on gasoline and diesel from April 20 to September 7, 2026. This measure reduces costs by 10 cents per litre for gasoline and 4 cents per litre for diesel. Additionally, the Home Buyers’ Plan repayment grace period has been extended from two to five years for RRSP withdrawals made between 2026 and 2028.
To support workers, the legislation enhances the Labour Mobility Deduction by reducing the minimum distance threshold from 150 km to 120 km and increasing the maximum annual deduction from $4,000 to $10,000. Seasonal workers in targeted regions may also receive up to five extra weeks of Employment Insurance benefits under an extended temporary measure. Furthermore, the base Canada Pension Plan (CPP) contribution rate will be reduced from 9.9% to 9.5% starting in 2027, which is estimated to save approximately $133 annually for an employee earning $70,000.
The bill also provides financial relief to the alcohol sector through excise duty adjustments. These include a 2% cap on annual inflationary duty increases and reduced rates for the first 15,000 hectolitres of beer brewed in Canada, offering over $30 million in relief through 2028. In terms of business succession, the $10 million capital gains exemption for qualifying transfers to employee ownership trusts and worker co-operatives has been made permanent.
Additional measures include allowing immediate expensing for greenhouses to support agricultural production and food security, as well as amending the Bank Act to streamline national security reviews for investments by foreign banks and their affiliates under a single framework.