Tax Alert

Budget 2024 implementation bill: How Bill C-69 could impact you

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The Budget Implementation Act, 2024, No. 1, also known as Bill C-69, includes several measures introduced in Budget 2024, the 2023 Fall Economic Statement (FES 2023), and Budget 2023. The bill was introduced on April 30, 2024, and hasn’t yet passed into law. Notably, the bill doesn’t include the capital gains inclusion rate increase proposed to be effective for capital gains realized on or after June 25, 2024. 

What are the key measures in this bill?

Alternative minimum tax

Bill C-69 includes changes to the alternative minimum tax (AMT) rules for individuals and certain trusts. These changes were originally announced in Budget 2023 with amendments proposed in Budget 2024. The new AMT rules would apply to tax years that begin after 2023, if enacted. 

Under the new rules, the AMT rate increases to 20.5% (from 15%) and the AMT base (i.e., the amount of income subject to AMT) is broadened so that taxpayers subject to AMT pay more taxes. In addition, the basic exemption amount available to individuals (and extended to qualified disability trusts under the new rules) increases to $173,000 (from $40,000) so less middle-income taxpayers will be subject to the tax. The new exemption amount is based on the start of the fourth federal tax bracket in the 2024 tax year.

More trusts will be subject to AMT under the new rules, even if they don’t have significant income. Graduated rate estates would no longer be subject to AMT under the new rules, and certain types of trusts would remain excluded from AMT.

See our tax alert for more information on how you or your trust could be affected by the AMT changes.

Underused Housing Tax

Bill C-69 contains changes to the Underused Housing Tax (UHT) rules proposed in FES 2023. Most notably, specified Canadian partnerships, specified Canadian trusts, and specified Canadian corporations would be “excluded owners”, if the bill is enacted. Under these rules, excluded owners aren’t required to file UHT returns starting with the 2023 calendar year. However, penalties would apply if such owners failed to file their 2022 UHT returns by CRA's one-time extended deadline of April 30, 2024. 

The bill also includes changes to: 

  • Exempt residential properties used to lodge employees in a prescribed zone from the UHT, if certain conditions are met, starting with 2023 UHT returns.
  • No longer consider certain condo units as “residential property” for UHT purposes if the owner holds 90% or more of the units in the building and certain other conditions are met, retroactive to 2022 UHT returns.
  • Allow individuals or spouses to claim only one vacation property exemption from the tax, starting with 2024 UHT returns.
  • Introduce new anti-avoidance rules targeting UHT avoidance planning.
  • Reduce the minimum failure to file penalties, applying retroactively to 2022 UHT returns. 

See our tax alert for more information about the UHT rules.

Employee ownership trusts

Bill C-69 also introduces a temporary $10 million capital gains exemption on the sale of a qualifying business to an employee ownership trust (EOT), where certain conditions are met before and after the sale. This exemption was announced in Budget 2024 and wasn’t part of the initial EOT legislation introduced in Bill C-59, which was tabled on November 30, 2023.  

Note that Bill C-69 includes modifications to the criteria for individuals to claim the $10 million capital gains exemption under the EOT rules, as compared to the Budget 2024 proposals.

See our tax alert for more information on the EOT rules, which were originally introduced in FES 2023.

Global minimum tax

Bill C-69 introduces new rules intended to ensure certain multi-national enterprises (MNEs) pay income tax at a minimum effective rate of 15% globally. 

Specifically, Bill C-69 includes a new Global Minimum Tax Act (GMTA) to implement two of the three measures in the “Pillar Two” global minimum tax regime, developed by the OECD/G20. These rules would apply to certain MNEs with annual consolidated revenues of €750 million or more in at least two of the four fiscal years immediately preceding the particular fiscal year. This €750 million threshold would be prorated for short fiscal years.

The GMTA includes a qualified domestic minimum top-up tax (QDMTT) and an income inclusion rule (IIR) that would come into effect for MNEs for fiscal years that begin on or after December 31, 2023. Canada's QDMTT imposes a top-up tax on Canadian entities of an MNE group, when the group’s Canadian effective tax rate is below 15%. Canada's IIR imposes a top-up tax on Canadian entities that are the ultimate parent entity of the MNE group, when the group has an effective tax rate below 15% in a foreign jurisdiction (after taking into account the QDMTT).

The QDMTT takes priority over the IIR, allowing Canada the first taxing right under Pillar Two in respect of the Canadian entities within an MNE group. Note that Canada’s GMTA doesn’t include legislation for the undertaxed profits rule (UTPR) under the Pillar Two framework, which is expected to be introduced later. The UTPR serves as a backup rule, imposing top-up taxes that aren’t otherwise collected under other rules and allocating the tax among all countries in which the MNE group operates. 

Other notable measures

This bill includes other notable tax measures from Budget 2024 to:

  • Increase the Home Buyers’ Plan withdrawal limit to $60,000 and extend the grace period before repayment starts.
  • Double the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit to $6,000.
  • Implement the Clean Technology Manufacturing Investment Tax Credit and Clean Hydrogen Investment Tax Credit.
  • Launch the Canada Carbon Rebate for small businesses.
  • Extend the 15% Mineral Exploration Tax Credit for an additional year.
  • Exempt certain Indigenous child and family services settlement payments from income for tax purposes.
  • Amend the excise duty on tobacco and vaping products.

The bill also includes other previous legislative proposals to:

  • Deny deductions for certain expenses incurred for earning short-term rental income in:

          o    Areas that have prohibited short-term rentals, or

          o    Areas permitting short-term rentals if any registration, licensing or permit requirements are not met. 

  • Extend the foreign buyers ban, which generally disallows non-Canadians from buying residential property in Canada, for an additional two years, to January 1, 2027.
  • Increase the maximum annual labour cost for the Canadian journalism labour tax credit to $85,000.
  • Exclude certain concessional loans from government authorities with reasonable repayment terms from being considered government assistance.


Bill C-69 includes a variety of tax measures – most notably, the AMT proposals which could significantly impact certain individuals and trusts. If you need help navigating these tax measures or have any questions, our advisors are here to help you.

Contact your local advisor or reach out to us here.



The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.


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