Things to know about Budget 2022

In another big-spending budget, Finance Minister Chrystia Freeland has tabled the federal government’s economic roadmap to navigate Canada out of the bowels of the pandemic, with measures aimed at putting Canada on a sustainable fiscal path. The budget addresses key Liberal Party promises, like a carbon capture tax credit, funding for national dental care, and a smaller tax hike on the big banks. Read BNN Bloomberg’s Ian Vandaelle’s breakdown of nine things you need to know about Budget 2022.

 

The federal government’s plan to get Canadians in homes

Also shown in the budget, the federal government is attempting to tackle Canada’s housing affordability crisis. This is no easy feat, as recently released data for Canada’s three major cities has shown: Toronto home prices are up 18 per cent compared to the same time last year, Vancouver home sales climbed 27 per cent since February, and Montreal’s median price of a single-family home soared 18 per cent since last year. What’s the plan? The feds’ three-pillar strategy involves limiting real estate investment, helping first-time buyers, and allocating funds to construction for more homes. The government anticipates the plan to cost $10.1 billion by fiscal 2026-27. BNN Bloomberg’s Michelle Zadikian has the details here. 

 

Pay transparency can minimize recruitment friction

Job postings are meant to provide relevant details about position openings — but a lack of “pay transparency” can keep applicants out of the loop. Without salary disclosures, candidates find themselves unaware as to whether a job is financially viable, often kept in the dark until after the application and interview process is complete. Amanda Hudson, founder of Toronto HR consultancy A Modern Way to Work, argues that employers who shine a light on job salaries will generate goodwill among prospective hires — and avoid unnecessary tension within a recruitment process.

 

Office vacancy remains high

Office desks continue to collect dust, despite the return-to-office hope of Canadian landlords. With a surge in the Omicron variant at the beginning of the year prompting more companies to give up leases, the national office-vacancy rate rose to a record 16.3 per cent in the first quarter, according to a report by commercial real estate brokerage CBRE. In Toronto, Canada’s largest city and financial capital, vacancies jumped to 14.8 per cent. So, as cases of COVID-19 continue to rise across the country, office spaces may remain empty for a while longer.

 

Young employees can benefit from stepping into the office

Speaking of vacant office space, many companies are continuing to adapt the hybrid model — where employees can switch between remote and in-office work. But for young professionals hoping to be more than a name on a screen, entering a physical workspace could be essential for building strong relationships and making lasting impressions. Read about important in-office steps towards career development, strong communication, and team collaboration here.

 

TIP JAR

$40,000

In the budget, Ottawa announced plans to introduce a Tax-Free First Home Savings Account, where starting in 2023, prospective buyers can deposit up to $8,000 a year tax-free to a maximum total of $40,000 to save for a home.

 

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