Tax Planning
Tax Planning in Canada: How Bill C-30 Impacts Home Buyers and Small Businesses
Recent enactment of Bill C-30 in Canada introduces tax relief for fuel, a grace period for RRSP home-buyer withdrawals, and boosted deductions for tradespeople—key planning opportunities for 2026-27.
By NomadicTax Research Team • 5-8 min read • July 16, 2026
## Overview of Bill C-30: Key Measures Enacted June 2026
In **Bill C-30**, which received Royal Assent on **June 19, 2026**, Canada enacted several tax measures to reduce costs for Canadians and support small business and home buyers:
- **Fuel excise tax suspended** on gasoline and diesel from April 20 to September 7, 2026—cutting **10 cents per litre on gasoline**, **4 cents** on diesel, and suspending tax on aviation fuels. ([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 repayment grace period extended** from 2 to **5 years** for RRSP withdrawals made between 2026 and 2028— easing the burden for new home buyers. ([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))
- **Labour Mobility Deduction enhanced**: threshold distance reduced from 150 km to **120 km**, maximum deduction increased from **$4,000 to $10,000/year**—helping tradespeople and other mobile workers. ([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))
## Planning Opportunities for Home Buyers and Small Businesses
### For Home Buyers
- If you plan to withdraw from your RRSP under the Home Buyers’ Plan between 2026-2028, you have **five years** to repay without triggering penalties—so budget accordingly.
- Factor in fuel cost savings and transportation expenses, especially if you commute to view homes or move between provinces—fuel savings may free up funds.
### For Small Businesses & Tradespeople
- Enhanced labour mobility deduction significantly expands potential deduction. If travelling or relocating work 120+ km, you may deduct higher amounts.
- Fuel excise suspension provides cost relief for driving, deliveries, or transport-heavy operations—watch for temporary relief in your region.
- Businesses investing in greenhouses can now use **immediate expensing** for those investments—accelerating depreciation. ([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))
## Practical Examples
- **New homeowner** Maria withdraws $30,000 from RRSP in 2026 to buy her first home—she now has **five years** (instead of two) to repay. So her annual budgets can stretch over 5 years, allowing for smoother cashflow.
- **Tradesperson** Liam works in multiple provinces and travels 130 km each day to job sites—he can now deduct up to **$10,000** annually instead of old $4,000, provided he meets distance requirements.
- **Small business** making delivery of goods: fuel costs temporarily drop for gasoline and diesel; with close tracking, these reductions can improve margins between April and September 2026.
## Things to Watch Out For
- The fuel tax relief is temporary—effective only until **September 7, 2026**. Prices will rebound unless extended—plan for the increase.
- Repayment of RRSP withdrawals under Home Buyers’ Plan must still comply with rules post-2028—that grace period only applies for withdrawals made in 2026-28.
- Provincial/territorial rules may differ—labour mobility rules might have additional conditions in your province. Always check local tax authority guidance.
## Summary: Planning Tips
- Use the **five-year repayment grace period** if buying now—this reduces annual repayment strain.
- Plan equipment, travel, and commuting expenses to take advantage of fuel suspension.
- Tradespeople and mobile workers should track distance and keep good documentation to claim increased labour mobility deductions.
- Set aside funds to absorb the resumption of excise tax or rising fuel costs after relief period ends.