Compliance
Staying Compliant While Benefiting from Canada’s Spring-2026 Measures
Canada’s recent Bill C-30 introduces changes like fuel tax suspensions, extended deductions for labour mobility, and Home Buyers’ Plan grace periods—all with important compliance implications.
By NomadicTax Research Team • 5-8 min read • July 26, 2026
## Major Policy Changes You Need to Know
In **Bill C-30**, passed on **June 19, 2026**, several tax measures became law: suspension of the **federal fuel excise tax** from **April 20 to September 7, 2026**, easing the cost of gasoline and diesel; expansion of the **Labour Mobility Deduction**; and a renewed **Home Buyers’ Plan** grace period concerning RRSP withdrawals.([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))
## Compliance Considerations for Each Measure
- **Fuel excise tax suspension**: Businesses that claim input tax credits based on excise tax paid should verify the exact effective periods; invoices for fuel between April 20 and September 7 should reflect zero excise. Misstated invoices may lead to denied credits or audits.
- **Labour Mobility Deduction**: The minimum distance for eligibility dropped from 150 km to 120 km, and the maximum amount rose to **$10,000 annually**. Businesses and individuals must track distance and documentation to support claims in case of CRA review.([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))
- **Home Buyers’ Plan (HBP) repayment grace period**: For RRSP withdrawals taken between 2026 and 2028, the repayment period is now **five years** instead of two. Those affected must adjust their repayment schedule and ensure CRA knows about the change. Missed repayments still trigger additional tax.([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))
## Records, Timing, and Audit Risks
- Keep all documentation—fuel receipts, mileage logs, RRSP withdrawal statements—through at least six years to defend positions in audits.
- Be aware of nomination and registration requirements if you're claiming labour mobility or other deductions requiring proof (e.g. a job site in another location).
- Check that employers’ payroll deductions align with updated CPP contribution rates: contributions will reduce in 2027.([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))
## Example Scenario
A construction company sends workers to multiple sites. Under the new **Labour Mobility Deduction**, a worker living 130 km from one site no longer qualifies under the old 150 km rule (and $4,000 cap), but now under the 120 km threshold and can deduct more expenses annually. The company must collect and keep travel records, distance measurements, and confirmation of job site locations.
## Actionable Checklist
- Review your tax returns to ensure updated rates (CPP, labour mobility) are applied correctly.
- Confirm whether fuel purchases in suspension period are correctly recorded for zero federal excise.
- Adjust personal HBP repayment plans for future years.
- Update financial statements or payroll systems with new tax thresholds and duty-free periods.