Compliance
Compliance in Motion: What the Spring Economic Update’s Bill C-30 Means for Workers and Businesses
Bill C-30 introduced sweeping reforms—labour mobility, CPP cuts, excise tax suspensions—that change what you owe, when and how. Here’s what to watch and how to stay compliant.
By NomadicTax Research Team • 5-8 min read • July 29, 2026
## Key Compliance Changes Under Bill C-30
- **Labour Mobility Deduction**: minimum distance threshold reduced from **150 km to 120 km**, maximum deduction raised from **$4,000 to $10,000/year**. This benefits tradespeople travelling for work, but requires documentation of distance, travel schedules, and related expenses. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html?utm_source=openai))
- **CPP Contribution Rate Drop**: effective **2027**, employer & employee base contribution rate drops from **9.9% to 9.5%**, with matching rate changes. Businesses should update payroll systems ahead of the 2027 year. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html?utm_source=openai))
- **Fuel Excise Tax Suspension**: gasoline and diesel excise tax suspended from **April 20 through September 7, 2026**, and similarly for aviation fuels. If your business has fuel purchases or transportation costs, ability to claim or adjust prices now depends on supplier invoices and accounting records. ([canada.ca](https://www.canada.ca/en/department-finance/news/2026/06/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html?utm_source=openai))
## What Businesses & Individuals Need to Do Now
- Update payroll software to reflect new CPP rate for 2027 before year-end, test calculations.
- Compile travel logs, mileage, lodging, and moving expense receipts if claiming Labour Mobility Deduction.
- Ensure fuel tax suspensions are documented; keep supplier bills clearly showing tax charges, so you can verify suspension application.
- Communicate with accounting and HR teams: internal training/awareness to manage new capital cost allowances for low-carbon LNG and business asset expensing (greenhouses, etc.).
## Case in Practice
**EverGreen Farms Inc.**, a greenhouse operator in Ontario, plans new construction in late 2026. Under Bill C-30, immediate expensing for greenhouse capital costs allows the company to write off equipment and building costs faster. This could significantly reduce taxable income in initial years. Properly classify which assets are eligible (greenhouse structures vs other building parts).
Meanwhile, **Jake**, a carpenter based in British Columbia, who travels 130 km to site each day, now meets the distance threshold for the enhanced Labour Mobility Deduction. He should be sure his travel incurred costs, maintain logs, and prepare to claim up to $10,000 in deductions for 2026.
## Maintaining Compliance Intentionally
- Monitor CRA and Finance updates—some measures being consulted (e.g., apprenticeship bonus) may change before enactment.
- Keep all documentation and verify that tax software reflects latest legislation—software updates will lag sometimes.
- Seek professional advice for complex items: international affiliate income (from proposed amendments), transfer pricing, CCUS credits.
## Summary for Employers & Workers
Bill C-30 delivers concrete changes: tax savings, cost relief, flexibility for workers and businesses alike. But meeting the **new documentation, timing and eligibility requirements** will be critical to actually realizing these benefits—and avoiding compliance issues.