All through this year, newcomers in Canada can anticipate observing different new laws and rules executed at the national, regional, or territorial levels. These modifications, varying from jobs and taxes to foreign student tuition, could affect international students, temporary international employees, and permanent residents nationwide.
Below is a summary of these modifications, starting with a conversation of national laws placed to impact the whole nation before addressing regions and territory-particular revisions new immigrants can anticipate in 2024.
Table of Contents
New Tax Laws Beginning Across Canada
The Canada Revenue Agency is changing so many tax laws in 2024, all of which will affect Canadian permanent residents.
Tax-free Savings Account (TFSA)
On 1st January, the Canada Revenue Agency elevated the yearly contribution restriction for Tax-Free Savings Accounts by $500, from $6,500 to $7,000 annually. This kind of savings account is crucial for every resident of Canada, including PRs, as it permits account possessors who donate funds into the account to prevent being charged capital profits and withdrawals.
Registered Retirement Savings Plan (RRSP)
Even though the yearly ratio of income that Registered Retirement Savings Plan possessors can deposit into their account, which is 18%, stays constant in 2024, the Canada Revenue Agency has increased the highest donation that account possessors can make in 2024. Beginning from $30,780 in 2023, Registered Retirement Savings Plan holders can contribute $31,560, a valuable bump to Canadian PRs’ savings for their long-term future.
Canada Pension Plan (CPP) and Employment Insurance
Each month, many members of the Canadian workforce have the Canada Pension Plan and Employment Insurance reduced from their paycheques. In 2024, conforming with a rise in the maximum Canada Pension Plan donation all over Canada, including the Quebec Pension Plan, the region’s pension plan, and additional funds will be removed from paycheques. Notably, workers in Canada will currently be required to pay $3 867 towards the Canada Pension Plan in 2024, an annual increase of $113 for people earning a minimum of $68,500 every year.
This implies that in the short period, hired individuals all over Canada will take home a little less every month. The national administration declared a second Canada Pension Plan tax, which is well placed to start this year. Hence, this tax will only affect employees whose earnings are higher than the initial income ceiling, based on the Globe and Mail. Being associated with Employment Insurance, premiums reimbursed by hired residents of Canada are rising this 2024, similar to the Canada Pension Plan. From the highest donation of national Employment Insurance of $1,002.35 in 2023, the 2024 maximum donation will be $1,049.12 this year.
Note:Based on a Globe and Mail story in December, Quebec Pension Plan tax rates are also rising this 2024, as workers will be needed to reimburse $4,348 into the Quebec Pension Plan in 2024.
Rise Coming to the Federal Carbon Tax
Due to the rise in Canada’s national carbon tax, one current Globe and Mail story states that residents of Canada who use private cars for transportation will make payments of 17.6 cents per liter of gasoline in fuel bills in 2024. This shows a rise of nearly 3.3 cents, approximately, to 2023.
This implies that Canada’s carbon tax elevation will significantly affect family costs, as the Globe and Mail proposed that the tax will charge the average family between $377 and $911 from 2024 to 2025, even after rebates.
Taxes Withheld From Paycheques May Rise for Some Remote Employees
Even though the information has yet to be concluded, based on a current Globe and Mail story, remote employees all over Canada could be subject to additional or lesser payroll tax retainings in 2024 if they live in a region that is not the same as their region of employment. This will affect where workers file their income taxes, pension, and Employment Insurance.
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New Financial Conditions for Foreign Students
For every international student with study permit requests obtained and presented as of 1st January, the national administration has now additionally doubled the cost-of-living monetary conditions that candidates must indicate during the application procedures.
In other words, Canadian study permit candidates must indicate that they have $20,635 in savings, a significant rise from the $10,000 foreign study permit candidates had to indicate before the beginning of this year.
Note:The new cost-of-living monetary conditions must be indicated with extra funds to protect the expense of first-year tuition and trips.
New Modifications at the Regional Level
Summarized by the region, the following will summarize modifications coming to laws and rules all over Canada that are anticipated to affect new immigrants in this nation significantly.
Ontario
With the minimum wage increase, presently at $16.55 hourly, the region is anticipated to elevate its minimum wage rate on 1st October 2023.
New Licensing Processes for Job Agencies:starting from 1st July, temporary work agencies and recruiters will require a license to allocate workers to work. This standard is planned to stop the exploitation of temporary and weak employees in the region.
Quebec
Out-of-province Tuition Hike:Starting this fall, out-of-province English-speaking students seeking to study in undergraduate or vocational graduate courses at Quebec’s three English language universities, which include Bishop’s, McGill, and Concordia, will notice their tuition rise by $3000. In an effort that will not affect students seeking study-based graduate courses, impacted students will see their tuition rise from $8,992 to about $12,000, based on the Globe and Mail.
Note:The Quebec government also declared minimum tuition payments of $20,000 for international students, highlighting that universities will be free to tax extra discretionary payments based on the same Globe and Mail story.
More Strict Language Standards:On 23rd November 2023, the Quebec government will need temporary international employees and international students applying via the Quebec Experience Program to attain new French language skill levels, particularly at least 7 for speaking and 5 for writing. Furthermore, the Quebec Experience Program will need temporary international employees to take a French exam to continue their work permits. International students making applications for immigration via the Quebec Experience Program will soon need to have either concluded a course of study in Quebec in French or concluded a minimum of three years of full-time secondary or post-secondary studies also in French.
Note: The Quebec Experience Program is an immigration course for international students who have completed a college or university in the region. This prerequisite will formally begin on 23rd November 2024.
Prince Edward Island
Rise of the Minimum Wage: Presently placed at $15 hourly, the region will elevate its minimum wage rate to $15.40 on 1st April and subsequently to $16 hourly from 1st October.
Nova Scotia
Rise of Minimum Wage:Presently placed at $15 hourly, the region will elevate its minimum wage rate with inflation on 1st April. Nova Scotia’s administration has also demonstrated a strategy to further promote the regional minimum wage by an extra 1% yearly.
Northwest Territories
Update to Health Gains for Low-Salary Residents:This includes a salary evaluation to specify benefit qualification; the territorial administration has declared that new prolonged health benefit guidelines will begin on 1st April.
Nunavut
Rise of Minimum Wage:Formerly placed at $16 hourly, Nunavut has elevated its minimum wage rate to $19 hourly since 1st January.
