Economic Action Plan 2015 Act, No. 1 (S.C. 2015, c. 36)
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Assented to 2015-06-23
PART 2SUPPORT FOR FAMILIES
Division 1R.S., c. 1 (5th Supp.)Income Tax Act
33. (1) Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:
(A) under any of sections 118 to 118.07, 118.2, 118.3, 118.5, 118.6, 118.8, 118.9 and 119.1,
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
34. (1) Subsection 153(1.3) of the Act is replaced by the following:
Marginal note:Reduction not permitted
(1.3) The Minister shall not consider either of the following circumstances as a basis on which a lesser amount may be determined under subsection (1.1):
(a) a joint election made or expected to be made under section 60.03; or
(b) a deduction or an intention to claim a deduction under section 119.1.
(2) Subsection (1) applies to the 2014 and subsequent taxation years.
Division 22006, c. 4, s. 168Universal Child Care Benefit Act
Amendments to the Act
35. The definition “qualified dependant” in section 2 of the Universal Child Care Benefit Act is replaced by the following:
“qualified dependant”
« personne à charge admissible »
“qualified dependant” means a person who is a qualified dependant for the purpose of Subdivision a.1 of Division E of Part I of the Income Tax Act.
36. Section 3 of the Act is replaced by the following:
Marginal note:Purpose
3. The purpose of this Act is to assist families by supporting their child care choices through direct financial support to a maximum of
(a) $1,920 per year in respect of each of their children who is under six years of age; and
(b) $720 per year in respect of each of their children who is six years of age or older but who is under 18 years of age.
37. (1) The portion of subsection 4(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Amount of payment — child under six years
4. (1) In respect of every month before January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is under six years of age and is a qualified dependant of the eligible individual,
(2) Section 4 of the Act is amended by adding the following after subsection (1):
Marginal note:Child under six years — January 1, 2015
(1.1) In respect of every month as of January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is under six years of age and is a qualified dependant of the eligible individual,
(a) a benefit of $80, if the eligible individual is a shared-custody parent of the qualified dependant; and
(b) a benefit of $160 in any other case.
Marginal note:Other children — January 1, 2015
(1.2) In respect of every month as of January 1, 2015, the Minister shall pay to an eligible individual, for each month at the beginning of which he or she is an eligible individual, for each child who, at the beginning of that month, is six years of age or older and is a qualified dependant of the eligible individual,
(a) a benefit of $30, if the eligible individual is a shared-custody parent of the qualified dependant; and
(b) a benefit of $60 in any other case.
1992, c. 48, Sch.Related Amendments to the Children’s Special Allowances Act
38. Section 3.1 of the Children’s Special Allowances Act is replaced by the following:
Marginal note:Monthly special allowance supplement
3.1 (1) There shall be added to a special allowance that is payable under section 3, for a child who, at the beginning of the month for which that allowance is payable,
(a) is under six years of age,
(i) a special allowance supplement in the amount of $100, in respect of every month before January 1, 2015, or
(ii) a special allowance supplement in the amount of $160, in respect of every month as of January 1, 2015; and
(b) is six years of age or older, a special allowance supplement in the amount of $60, in respect of every month as of January 1, 2015.
Marginal note:Payment out of Consolidated Revenue Fund
(2) The supplement is to be paid out of the Consolidated Revenue Fund.
39. Paragraph 4(4)(d) of the Act is replaced by the following:
(d) reaches 18 years of age.
Coming into Force
Marginal note:July 1, 2015
40. This Division comes into force, or is deemed to have come into force, on July 1, 2015.
PART 3VARIOUS MEASURES
Division 1Federal Balanced Budget Act
Enactment of Act
Marginal note:Enactment
41. The Federal Balanced Budget Act, whose text is as follows and whose schedule is set out in Schedule 1 to this Act, is enacted:
An Act respecting the balancing of federal government budgets
Preamble
Whereas a sound fiscal position is crucial to economic growth and job creation over the longer term;
Whereas attaining and maintaining a sound fiscal position requires that the Government of Canada achieve annual balanced budgets and reduce debt, other than when a recession or extraordinary situation occurs;
Whereas maintaining balanced budgets and reducing debt helps to keep taxes low, instill confidence in consumers and investors, strengthen Canada’s ability to respond to longer-term economic and fiscal challenges and preserve the sustainability of public services;
And whereas reducing the debt burden will help to ensure fairness for future generations by avoiding future tax increases or reductions in public services;
Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Federal Balanced Budget Act.
INTERPRETATION
Marginal note:Definitions
2. The following definitions apply in this Act.
“balanced budget”
« équilibre budgétaire »
“balanced budget” means a budget in which the total amount of expenses for a fiscal year does not exceed the total amount of revenues for that year, those revenues being calculated before any amounts to be set aside for contingencies are subtracted.
“deputy minister”
« sous-ministre »
“deputy minister”, with respect to an organization named in column 1 of the schedule, means the person occupying the position set out in column 2.
“extraordinary situation”
« situation exceptionnelle »
“extraordinary situation” means a situation that results in an aggregate direct cost to the Government of Canada of more than $3 billion in one fiscal year and that is caused by any of the following:
(a) a natural disaster or other unanticipated emergency of national significance; or
(b) an act of force or violence, war or threat of war, or other armed conflict.
“federal debt”
« dette fédérale »
“federal debt” means the accumulated deficit as stated in the Public Accounts.
“initial deficit”
« déficit initial »
“initial deficit” means a deficit that is projected in respect of the fiscal year that follows a fiscal year in respect of which a balanced budget was projected or recorded.
“Minister”
« ministre »
“Minister” means the Minister of Finance.
“open fiscal year”
« exercice ouvert »
“open fiscal year” means the first of the fiscal years covered by budget projections in respect of which the financial statements of the Government of Canada have not been reported in the Public Accounts.
“operating budget freeze”
« gel du budget de fonctionnement »
“operating budget freeze” means the measure set out in each of paragraphs 7(1)(a) and 8(1)(a).
“pay”
« rémunération »
“pay” means,
(a) in respect of the Prime Minister, a minister or minister of State, the sessional allowance provided for in paragraph 55.1(2)(b) of the Parliament of Canada Act and the annual salary provided for in section 4.1 of the Salaries Act or, in respect of a minister of State who does not preside over a ministry of State, the annual salary provided for in an appropriation Act; and
(b) in respect of a deputy minister, a base rate of pay, whether expressed as a single rate of pay or a range of rates of pay or, if no such rate or range exists, any fixed or ascertainable amount of base pay.
“pay freeze”
« gel salarial »
“pay freeze” means the measure set out in paragraph 7(1)(b).
“pay reduction”
« réduction salariale »
“pay reduction” means the measure set out in paragraph 8(1)(b).
“recession”
« récession »
“recession” means a period of at least two consecutive quarters of negative growth in real gross domestic product for Canada, as reported by Statistics Canada under the Statistics Act.
APPLICATION
Marginal note:Economic and fiscal updates
3. This Act does not apply in respect of economic and fiscal updates.
Marginal note:2015-2016 fiscal year and subsequent years
4. For greater certainty, this Act applies in respect of the 2015-2016 fiscal year and subsequent fiscal years.
FEDERAL DEBT REDUCTION
Marginal note:Debt reduction
5. Any surplus recorded in the Public Accounts in respect of a fiscal year must be applied to the reduction of the federal debt.
PROJECTED DEFICIT
Marginal note:Appearance of Minister
6. (1) If the Minister tables a budget in the House of Commons that projects an initial deficit in respect of the open fiscal year or the following fiscal year, the Minister must appear before the appropriate committee of the House of Commons on any of the first 30 days on which that House is sitting after the day on which the budget is tabled to explain the reasons for the projected deficit and present a plan for a return to balanced budgets that includes
(a) the measures set out in subsections 7(1) and 8(1) that apply; and
(b) the period within which a balanced budget is to be achieved.
Marginal note:Subsequent appearances
(2) The Minister must appear before the committee annually to present an updated plan until a balanced budget is recorded in the Public Accounts in respect of a fiscal year that is covered by the plan.
Marginal note:Recession or extraordinary situation
7. (1) If a deficit is projected due to a recession or extraordinary situation that, at the time the budget is tabled, has occurred, is occurring or is forecast,
(a) there is to be no increase in the operating budget of any government entity to fund annual wage increases; and
(b) there is to be no increase in the pay for the Prime Minister, ministers, ministers of State and deputy ministers.
Marginal note:Duration of measures
(2) The operating budget freeze and the pay freeze are to take effect on the first day of the fiscal year that follows the fiscal year in which the recession or extraordinary situation ends and are to remain in effect until a balanced budget is recorded in the Public Accounts.
Marginal note:End of recession
(3) For the purposes of subsection (2), a recession ends in the fiscal year in which the second consecutive quarter of positive growth in real gross domestic product for Canada is reported by Statistics Canada under the Statistics Act.
Marginal note:No recession or extraordinary situation
8. (1) If a deficit is projected for reasons other than a recession or extraordinary situation,
(a) there is to be no increase in the operating budget of any government entity to fund annual wage increases; and
(b) there is to be a 5% reduction in the pay for the Prime Minister, ministers, ministers of State and deputy ministers.
Marginal note:Duration of measures
(2) The operating budget freeze and the pay reduction are to take effect on April 1 of the year in which the budget is tabled and are to remain in effect until a balanced budget is recorded in the Public Accounts.
RECORDED DEFICIT
Marginal note:Deficit recorded but not projected
9. If a deficit that was not projected in a budget is recorded in the Public Accounts in respect of a fiscal year, the Minister must appear before the appropriate committee of the House of Commons on any of the first 30 days on which that House is sitting after the day on which those Public Accounts are tabled to explain the reasons for the deficit and present a plan for a return to balanced budgets that includes
(a) the measures set out in subsections 7(1) and 8(1) that apply; and
(b) the period within which a balanced budget is to be achieved.
Marginal note:Recession or extraordinary situation
10. (1) If the deficit referred to in section 9 is due to a recession or extraordinary situation that, at the time the Public Accounts are tabled, has occurred or is occurring, the operating budget freeze and pay freeze are to take effect on the first day of the fiscal year that follows the fiscal year in which the recession or extraordinary situation ends and are to remain in effect until a balanced budget is recorded in the Public Accounts.
Marginal note:End of recession or extraordinary situation
(2) For the purposes of subsection (1),
(a) a recession ends in the fiscal year in which the second consecutive quarter of positive growth in real gross domestic product for Canada is reported by Statistics Canada under the Statistics Act; and
(b) an extraordinary situation ends in the fiscal year in which the Public Accounts recording a deficit due to that situation are tabled.
Marginal note:No recession or extraordinary situation
11. If the deficit referred to in section 9 is not due to a recession or extraordinary situation, the operating budget freeze and pay reduction are to take effect on April 1 of the year that follows the year in which the Public Accounts are tabled and are to remain in effect until a balanced budget is recorded in the Public Accounts.
GENERAL PROVISIONS
Marginal note:Override
12. If a budget projects a deficit due to a recession that, at the time the budget is tabled, has occurred, is occurring or is forecast, the measures set out in this Act apply in respect of that projected deficit and
(a) any measure set out in this Act that is already in effect because of any other projected or recorded deficit ceases to be in effect; and
(b) any measure set out in this Act that was to take effect because of any other projected or recorded deficit is not to take effect.
Marginal note:Amendments to schedule
13. The Governor in Council may, by order, amend the schedule by adding or deleting the name of an organization or a position.
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