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The government has announced significant new support to help small business owners

Canada government

A comprehensive set of measures to support small and medium-sized businesses in their startup, growth, and success was announced on October 1st by the Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, the Honorable Rechie Valdez, Minister of Small Business, and the Honorable Jean-Yves Duclos, Minister of Public Services and Procurement.

Canada Carbon Rebate for Small Businesses

Before the end of the year, approximately 600,000 Canadian businesses will receive over $2.5 billion in payments from the federal government under the new Canada Carbon Rebate for Small Businesses. 

In regions where the federal fuel charge is in effect, this refundable tax credit will reimburse small businesses for a portion of the fuel charge revenues from 2019–20 through 2023–2024.

Payments to qualified companies that submitted their 2023 tax returns by July 15, 2024, will be made by:

  • December 16, 2024, if registered for direct deposit from the Canada Revenue Agency
  • December 31, 2024, if receiving payment by cheque.

The government proposes to extending the deadline for businesses to file their tax returns from July 15, 2024, to December 31, 2024, to guarantee that all eligible businesses can receive their payments. Payment to late filers would be made after the necessary laws were ratified by the monarch.

Businesses in Ontario with 10 employees can receive up to $4,010 from the Canada Carbon Rebate for Small Businesses; in Alberta, businesses with 50 employees can receive up to $29,550; and in Saskatchewan, businesses with 499 employees can receive up to $576,844.

Code of Conduct for the Payment Card Industry in Canada

To safeguard more than one million companies that take consumer credit and debit card payments, the federal government of Canada announced a revised Code of Conduct for the Payment Card Industry.

Beginning on October 30, 2024, the updated Code will assist companies in comparing terms and offers from various payment processors. It will reduce the time it takes to handle complaints by almost 80%, to just 20 business days.

Every significant Canadian payment card network operator has consented to the updated Code’s terms. By April 30, 2025, a few obligations requiring complex or technical system modifications will be in force.

Reduced credit card transaction fees for small businesses

This will take effect on October 19, 2024. Interchange fees can be lowered by up to 27% for over 90% of small and medium-sized companies that take credit cards. Over 5 years, eligible small businesses should save roughly $1 billion due to these fee reductions.

Every year, small businesses will save thousands of dollars thanks to lower credit card transaction fees. For example, a store that accepts $300,000 in credit card payments currently has to pay annual fees of almost $4,000. These new agreements could result in annual fee savings for the store of $1,080.

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