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Legislation tracker

Which tax bills and draft proposals are in motion, and where does each one stand?

Tax law changes through bills in Parliament, and often through draft legislation the Department of Finance releases first. This page lists the ones in motion that reach a small business owner, restates what each would do, and gives the stage it has reached and the date it got there, each with a link to the government record.

Sources read October 19, 2026

In motion as at October 19, 2026

Each entry is a government bill, an Act with a part still waiting for an order to bring it into force, or a draft the Department of Finance has released. It lists the measures that reach a small business owner, the stage reached and the date it got there. The stage is copied from the record on the day shown, and every entry links that record.

Bills, and Acts with a part not yet in force

  1. Federal · Bill C-38

    Canadian Fuel Affordability Act

    An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief)

    Stage
    At report stage in the House of CommonsSince October 6, 2026: Committee report presented without an amendment
    Also on the record
    Finance released the same rules as draft legislation on September 2, 2026, before the bill was introduced.
    Steps so far
    1. September 21, 2026 Introduction and first reading (House of Commons)
    2. September 22, 2026 Second reading and referral to committee (Standing Committee on Finance)
    3. October 6, 2026 Committee report presented without an amendment
    Who it is for
    Finance says extending the relief "will help lower everyday costs for Canadians while supporting truckers and businesses in the food, agriculture, housing, construction, delivery, and aviation sectors".
    What it would do
    • Extends the temporary suspension of federal excise tax on gasoline, aviation gasoline, diesel fuel and aviation fuel to tax that becomes payable before February 2027, deemed in force on September 8, 2026. (Clause 2, Excise Tax Act, Schedule I, s. 9.2)
    • From February 1, 2027 to March 31, 2027, sets the rates at 5 cents per litre for gasoline and unleaded aviation gasoline, 5.5 cents for leaded aviation gasoline and 2 cents for diesel fuel and aviation fuel, half the regular rates. (Clause 3, Excise Tax Act, Schedule I, s. 9.3; rates as stated in Finance’s release of September 22, 2026)
    Sources
    Covered in our guides

    Sources read October 19, 2026

  2. Federal · Bill C-30

    Spring Economic Update 2026 Implementation Act

    An Act to implement certain provisions of the spring economic update tabled in Parliament on April 28, 2026

    Stage
    Royal assent received; Division 5 of Part 3 not in forceSince June 18, 2026: Royal assent (Statutes of Canada 2026, c. 22)
    Not yet in force
    Division 5 of Part 3, the Canada Pension Plan contribution rates, comes into force on a day to be fixed by order of the Governor in Council.Coming-into-force provision: S.C. 2026, c. 22, s. 44(2), in accordance with Canada Pension Plan s. 114(4)Where the order would be published: Canada Gazette, Part II: 2026 issues. Read through the issue of October 7, 2026, without the order.
    Also on the record
    Under s. 114(4) of the Canada Pension Plan, the order may not be made unless at least two thirds of the included provinces, having at least two thirds of their population, have consented. No order fixing the day appears in the Canada Gazette, Part II, issues of July 1 to October 7, 2026; the Justice Laws consolidation of the Canada Pension Plan, current to 2026-09-21, lists 2026, c. 22, ss. 41 to 43 among its amendments not in force; and the CRA’s CPP contribution rates page, last modified 2025-10-31, carries no 2027 row.
    Steps so far
    1. April 29, 2026 Introduction and first reading (House of Commons)
    2. May 26, 2026 Second reading and referral to committee (Standing Committee on Finance)
    3. June 16, 2026 Committee report presented with amendments
    4. June 18, 2026 Third reading in the House of Commons; first, second and third reading in the Senate
    5. June 18, 2026 Royal assent (Statutes of Canada 2026, c. 22)
    Who it is for
    The bill’s summary says Division 5 of Part 3 amends the Canada Pension Plan "to reduce the contribution rate for employees, employers and self-employed persons for the year 2027 and each subsequent year".
    What it would do
    • Sets the base contribution rate in Schedule 1 of the Canada Pension Plan at 4.75% for employees, 4.75% for employers and 9.5% for self-employed persons for 2027 and each subsequent year, and closes the current row (4.95%, 4.95% and 9.9% for 2003 and each subsequent year) at 2026. (Clauses 42 and 43, Canada Pension Plan Schedule 1)
    • Division 5 comes into force on a day fixed by order of the Governor in Council, in accordance with s. 114(4) of the Canada Pension Plan, and s. 114(2) of that Act does not apply to it. (Clause 44, S.C. 2026, c. 22, s. 44(1) and (2))

    Left out of this row. The row stays past ninety days after royal assent because Division 5 awaits its order. The Act’s other measures are left out, as is Division 5’s replacement of the rate formulas in Canada Pension Plan s. 113.1(11.07) to (11.09).

    Sources
    Covered in our guides

    Sources read October 19, 2026

  3. Federal · Bill C-31

    Budget 2025 Implementation Act, No. 2

    A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025

    Stage
    At consideration in committee in the House of CommonsSince June 3, 2026: Second reading and referral to committee
    Also on the record
    LEGISinfo lists the House committee stage (Standing Committee on Finance) as in progress, with committee meetings on October 6, 2026 and October 8, 2026. In the Senate, the Standing Senate Committee on National Finance is studying the bill before it arrives (a pre-study), listed as in progress, with committee meetings on October 6, 2026 and October 7, 2026.
    Steps so far
    1. May 6, 2026 Introduction and first reading (House of Commons)
    2. June 3, 2026 Second reading and referral to committee
    3. June 10, 2026 Pre-study of House bill (Senate)
    What it would do
    • A deduction of up to 100% of an eligible manufacturing building’s undepreciated capital cost in the first year it meets the floor space requirement, for taxation years ending before 2030, then 75% in 2030 or 2031 and 55% in 2032 or 2033. Among the bill’s conditions, the building is in Canada, acquired after November 3, 2025, placed in a separate class by election, and at least 90% of its floor space is used for manufacturing or processing in Canada of goods for sale or lease. (Clauses 114, 115 and 117, Income Tax Regulations s. 1100(1)(a.1)(i), s. 1101(5b.1) and s. 1104(2))
    • If, within 10 calendar years, more than 10% of such a building’s floor space starts being used for other income-earning purposes, the building is deemed disposed of at the undepreciated capital cost it would have had without the first-year deduction. (Clause 5, Income Tax Act s. 13(7)(d.1) and s. 13(21))
    • Limits the deferral of tax on investment income through tiered corporate structures with mismatched year ends: a dividend received by an affiliated private corporation in a taxation year ending after the payer’s is a "suspended dividend", earning the payer no dividend refund unless or until the bill’s conditions are met. Applies to dividends paid in taxation years that begin on or after November 4, 2025. (Clause 36, Income Tax Act s. 129(1.3) to (1.33))
    • A CRA official may require a taxpayer or any other person to provide any information or document within a reasonable period of time. (Clause 78, Income Tax Act s. 231.1(1)(f))
    • The CRA may send a notice of non-compliance to a person who has not complied with an information or document requirement. The person is liable to a penalty of $50 for each day the notice is outstanding, to a maximum of $25,000, and the time it is outstanding does not count toward the period in which the CRA may reassess. (Clause 83, Income Tax Act s. 231.9 and s. 231.8(1)(e))
    • Where a judge orders a taxpayer to comply with a CRA requirement, the taxpayer is liable to a further penalty of 10% of the tax payable for each taxation year the order relates to, unless that tax is less than $50,000 for each of those years. (Clause 82, Income Tax Act s. 231.7(6) and (7))
    • Raises the Tax Court of Canada’s informal procedure to income tax appeals where the amounts in issue total $50,000 or less (or a loss of $100,000 or less), and to GST/HST appeals where the amount in dispute does not exceed $100,000. Appeals filed on or before the day the change comes into force keep the old limits. (Clauses 253, 259 and 263, Tax Court of Canada Act s. 18(1) and s. 18.3001)
    • When an individual GST/HST registrant dies, a return that would otherwise be due within six months after the death is due on the last day of the sixth month after the month of death, and the estate files it. (Clause 184, Excise Tax Act s. 238(3.1))

    Left out of this row. The bill also carries measures this row leaves out, among them automatic tax filing for lower-income individuals, the Crypto-Asset Reporting Framework, the global minimum tax, financial-institution rules and a ban on most non-compete clauses for federally regulated employers.

    Sources
    Covered in our guides

    Sources read October 19, 2026

Draft legislation from Finance

  1. Federal · Draft legislation

    Productivity Mega Deduction

    Draft Legislative Proposals Relating to the Income Tax Act and Income Tax Regulations

    Stage
    Draft legislative proposals releasedSince September 15, 2026: Released by the Department of Finance
    Also on the record
    Finance’s draft page and backgrounder give no consultation deadline.
    Who it is for
    Finance’s release of October 1, 2026 says the deduction "will allow businesses to immediately deduct the full cost of a much broader range of investments".
    What it would do
    • Immediate expensing, a deduction of the full cost in the year the property becomes available for use, for most depreciable property acquired on or after September 15, 2026, on a permanent basis. (Draft Income Tax Regulations s. 1100(0.1) and "immediate expensing property" in s. 1104(3.1) (Immediate Expensing, clauses 3 and 5); Finance backgrounder of September 15, 2026)
    • Excluded, among other property: buildings in classes 1 and 3; property in classes 14, 14.1 and 51, such as franchises, licences and goodwill; and a passenger vehicle (and certain other vehicles) in class 10 or 10.1 that was used before the taxpayer acquired it or was assembled in a country other than Canada. (Draft "excluded property" and "excluded vehicle" in Income Tax Regulations s. 1104(3.1) (clause 5))
    • A taxpayer may elect, in its return for the year a class 10.1 vehicle is acquired, to leave that vehicle out of immediate expensing. (Draft Income Tax Regulations s. 1103(2k) (clause 4))
    • Property used before it was acquired qualifies only if neither the taxpayer nor a person not dealing at arm’s length with it owned it before, and it was not transferred on a tax-deferred rollover basis. (Draft "immediate expensing property" in Income Tax Regulations s. 1104(3.1) (clause 5))
    • For a taxpayer that is neither a corporation nor a partnership made up of corporations, the deduction cannot exceed the income from the business or property the asset is used in. Finance describes this as restricting the ability of individuals, and partnerships with members who are individuals, to create or increase a loss. (Draft Income Tax Regulations s. 1100(0.1)(b) (clause 3); Finance backgrounder of September 15, 2026)
    • Manufacturing and processing buildings stay outside the measure and, Finance says, would continue to be eligible for the temporary immediate expensing announced in Budget 2025 (carried in Bill C-31). Property that does not qualify continues to be eligible for the temporary Accelerated Investment Incentive. (Draft "excluded property" in Income Tax Regulations s. 1104(3.1) (clause 5); Finance backgrounder of September 15, 2026)

    Left out of this row. The draft also covers Canadian development expenses and accelerated allowances for liquefied natural gas facilities, which this row leaves out.

    Sources
    Covered in our guides

    Sources read October 19, 2026

  2. Federal · Draft legislation

    GST/HST and excise technical amendments

    Legislative and Regulatory Proposals Relating to the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act

    Stage
    Draft released for consultationSince July 23, 2026: Released by the Department of Finance for consultation
    Also on the record
    Finance invited comments by September 4, 2026.
    What it would do
    • Amends the holdback rule, under which GST/HST on a part of the consideration retained pending full and satisfactory performance is payable on the earlier of the day that part is paid and the day it becomes due. Finance’s notes say the change corrects a technical error. In force on royal assent. (Clause 5, Excise Tax Act s. 168(7))
    • Lets a CRA official, given a number, confirm whether it is a GST/HST business number and give the holder’s name, the effective date of its registration and any cancellation date. In force on royal assent. (Clause 14, Excise Tax Act s. 295(6.2))
    • The CRA would notify its decision on a notice of objection, and on an application to extend the time to object, in writing rather than only by registered or certified mail. In force on royal assent. (Clauses 16 and 17, Excise Tax Act s. 301(5) and s. 303(5))

    Left out of this row. The package also carries a GST/HST reverse charge for certain supplies in the telecommunications sector and amendments on virtual payment instruments, financial institutions, agriculture, excise duties, the air travellers charge and the luxury tax, which this row leaves out.

    Sources
    Covered in our guides

    Sources read October 19, 2026

  3. Federal · Draft legislation

    Income Tax Act technical amendments

    Legislative Proposals Relating to the Income Tax Act and the Income Tax Regulations (Technical Amendments)

    Stage
    Draft released for consultationSince July 23, 2026: Released by the Department of Finance for consultation
    Also on the record
    Finance invited comments by September 4, 2026.
    What it would do
    • Amends the automobile benefit rules, paragraphs 6(1)(k) and (l) and subsection 6(2) and, for a shareholder, subsection 15(5), to apply to benefits provided to a person who does not deal at arm’s length with the employee or shareholder, for 2026 and later taxation years. Finance’s notes say this is consistent with the scope of paragraphs 6(1)(a) and (e). (Clauses 1 and 3, Income Tax Act s. 6(1)(k), (l), 6(2) and 15(5))
    • Moves the existing exclusions for a debtor that is a corporation resident in Canada, or a partnership of such corporations, from the shareholder-loan rule in subsection 15(2) and the loan-benefit rule in subsection 80.4(2) into new subsections 15(2.01) and 80.4(2.01). The new 15(2.01) also covers tiered partnerships. (Clauses 3 and 10, Income Tax Act s. 15(2), 15(2.01), 80.4(2) and 80.4(2.01))

    Left out of this row. The package also carries technical amendments on foreign affiliates, resource and film credits, registered plans, an ordering rule for the first-year capital cost allowance and other areas, which this row leaves out.

    Sources
    Covered in our guides

    Sources read October 19, 2026

How a federal bill becomes law

A government tax bill usually starts in the House of Commons, where LEGISinfo, Parliament’s record of every bill, lists its stages. In the House those are first reading, second reading, consideration in committee, report stage and third reading. The Senate then gives the bill its own three readings with a committee stage between them, and it becomes law on royal assent.

The Senate can also study a bill before the House has finished with it, which LEGISinfo records as a pre-study. In a pre-study (i.e. before the bill formally reaches the Senate), a Senate committee examines it. A bill’s current status on LEGISinfo is the stage it’s at on the day it’s read, and the date beside it on this page is the day of the last step LEGISinfo lists.

Royal assent makes a bill law, but not every part takes effect that day, because a bill sets its own dates clause by clause. Bill C-31, for example, deems some measures in force from November 4, 2025, starts others on January 1, 2027 and leaves some to a day the Governor in Council fixes by order.

What a draft from Finance is

The Department of Finance often publishes the wording of a tax change as draft legislative proposals before any bill exists, and invites comments on it. A draft isn’t law until a bill carrying it is passed and receives royal assent, and that bill can differ from the draft.

The fuel excise extension went that way: Finance released it as a draft on September 2, 2026. Bill C-38, the bill that carries it, was introduced in the House of Commons on September 21, 2026. A draft can also say it applies from a date before any bill passes. The September 2026 draft on immediate expensing applies to property acquired on or after September 15, 2026, the day Finance released it.

What this page carries

A row is a bill or a draft with measures that reach an owner-manager: the owner of a corporation, an incorporated professional, a contractor, a sole proprietor registered for GST/HST, or an employer. Each row restates those measures in a sentence each and cites the clause and the part of the law it changes. It also names what else the bill or draft carries that the row leaves out.

Private members’ bills and Senate public bills are left out as a class, because most of them never come to a vote. A row stays while its bill or draft is in motion, and for about ninety days after royal assent. It stays longer while a part of the Act still waits for an order to bring it into force, and the row says which part and where that order would be published.

Every row shows the day its sources were last read, and a stage that’s moved since then appears first in the record the row links.

Corporations with an office or other permanent establishment in Quebec, and owners who live in Quebec, file separately with Revenu Québec, and Cadence does not currently prepare those filings. This tracker carries no Quebec bill or draft, and no measure that reaches only Quebec.

Reading one row

Take the Canadian Fuel Affordability Act, Bill C-38. It was introduced on September 21, 2026, and LEGISinfo lists three steps so far, the latest on October 6, 2026: “Committee report presented without an amendment”. Its current status there is “At report stage in the House of Commons”. Until both the House of Commons and the Senate have passed it and it has received royal assent, its measures are proposals, and the row says what they would do, not what the law is.

Where the stages come from

Every stage below is copied from the record named beside it, on the date shown. The last three rows give the sources for how a bill and a draft move.

EntryValueApplies toSource
Bill C-38, Canadian Fuel Affordability ActAt report stage in the House of CommonsCommittee report presented without an amendment, October 6, 2026Parliament of Canada, LEGISinfo, Bill C-38 (45th Parliament, 1st session) Verified 2026-10-19.
Bill C-31, Budget 2025 Implementation Act, No. 2At consideration in committee in the House of CommonsSecond reading and referral to committee, June 3, 2026Parliament of Canada, LEGISinfo, Bill C-31 (45th Parliament, 1st session) Verified 2026-10-19.
Bill C-30, Spring Economic Update 2026 Implementation ActRoyal assent received; Division 5 of Part 3 not in forceRoyal assent (Statutes of Canada 2026, c. 22), June 18, 2026Parliament of Canada, LEGISinfo, Bill C-30 (45th Parliament, 1st session) Verified 2026-10-19.
Draft legislation: Productivity Mega DeductionDraft legislative proposals releasedReleased by the Department of Finance, September 15, 2026Department of Finance Canada, Draft Legislative Proposals Relating to the Income Tax Act and Income Tax Regulations Verified 2026-10-19.
Draft legislation: GST/HST and excise technical amendmentsDraft released for consultationReleased by the Department of Finance for consultation, July 23, 2026Department of Finance Canada, Legislative and Regulatory Proposals Relating to the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act Verified 2026-10-19.
Draft legislation: Income Tax Act technical amendmentsDraft released for consultationReleased by the Department of Finance for consultation, July 23, 2026Department of Finance Canada, Legislative Proposals Relating to the Income Tax Act and the Income Tax Regulations (Technical Amendments) Verified 2026-10-19.
The stages of a House of Commons billThree readings and a committee stage in each chamber, a report stage in the House, then royal assentA House of Commons billParliament of Canada, LEGISinfo, Bill C-30 (45th Parliament, 1st session), progress through royal assent Verified 2026-10-07.
When a bill’s parts take effectOn the dates the bill setsBill C-31, as the exampleParliament of Canada, Bill C-31, first reading, clauses 5, 22 and 252 Verified 2026-10-07.
A draft carried into a billFuel excise: a draft, then Bill C-38Finance’s two releasesDepartment of Finance Canada, Minister Champagne introduces legislation to extend the federal fuel excise tax relief for Canadians Verified 2026-10-07.

Questions this tracker answers

Which federal tax bills are before Parliament right now?

As at October 19, 2026, this page carries two bills before Parliament that reach a small business owner, each linked to its LEGISinfo record: Bill C-38, the Canadian Fuel Affordability Act (at report stage in the House of Commons); and Bill C-31, the Budget 2025 Implementation Act, No. 2 (at consideration in committee in the House of Commons). It also carries Bill C-30, the Spring Economic Update 2026 Implementation Act, which received royal assent with a part that awaits an order to come into force.

What draft tax legislation has the Department of Finance released?

As at October 19, 2026, this page carries three drafts from the Department of Finance that reach a small business owner, each linked to its page on Finance’s site: Productivity Mega Deduction (released September 15, 2026); GST/HST and excise technical amendments (released July 23, 2026); and Income Tax Act technical amendments (released July 23, 2026).

What stage is a tax bill at, and when does it become law?

LEGISinfo, Parliament’s record of every bill, gives each bill a current status, such as “At report stage in the House of Commons”, and lists every step with its date. A federal bill becomes law when the House of Commons and the Senate have both passed it and it receives royal assent. Each part then takes effect on the date the bill sets for it.

Is draft tax legislation from Finance already law?

A draft from the Department of Finance isn’t law, only proposed wording, until a bill carrying it is passed and receives royal assent. A draft can say it applies from an earlier date, such as the day it was released. That earlier date holds only if the bill that finally passes keeps it.

Does this page predict whether a bill becomes law?

It doesn’t, because the page restates each government record and adds nothing to it. Each row gives the stage the legislature’s own record lists and the date of its last step, and nothing about what comes next.

How current is a row?

Each row shows the day its sources were last read, and its stage is copied from the record on that day. A bill can move after that, so the record the row links is where a later step appears first.

Is this page advice?

This page restates what each bill and draft says and the stage it has reached, with a link to the government record. It isn't advice about your situation, and it doesn't predict whether a bill becomes law. When Cadence prepares a return, a tax professional (i.e. a person, not a program) signs it.

This page restates what each bill and draft says and the stage it has reached, with a link to the government record. It isn't advice about your situation, and it doesn't predict whether a bill becomes law. When Cadence prepares a return, a tax professional (i.e. a person, not a program) signs it.

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