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)
- 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)
- 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)
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)
Practical Examples
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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.
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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.
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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.