This Wednesday, November 11, we pause for Remembrance Day to honour the men and women who have served, and continue to serve, our country. It has also been a big week on the tax front, as the federal government tabled Budget 2026. While there are no changes to personal tax rates, there are several new measures that could impact your business, investment, and retirement planning. In this issue, I break down the key highlights you need to know. Enjoy this issue and please remember to share this with everyone in your network:

1. Budget 2026: A New $15 Million Capital Gains Exemption

If you're starting or investing in a growing Canadian business, this one is worth a close look. The new Canada Growth Incentive would exempt up to $15 million of capital gains per person, per business, on new shares of a Canadian-controlled private corporation issued after Budget Day and before 2037. The conditions are strict. You must hold the shares for at least 36 months, the company's assets must be $100 million or less, and most of its assets must be used in an active business in Canada. Many sectors are excluded, including professional practices, consulting, real estate, and financial services. Claiming this exemption also reduces your Lifetime Capital Gains Exemption room on the same shares. How and when your shares are issued now matters a great deal, so plan this before you incorporate or raise capital, not after.

2. Budget 2026: Write Off Business Equipment Immediately

The new Productivity Mega Deduction would permanently allow businesses to deduct the full cost of most new capital assets in the year they are purchased. Certain long-lived buildings, intangibles, and some passenger vehicles are excluded. Legislation has not yet been tabled, so the start date is not final. If you're planning a major equipment or technology purchase, timing it well could produce a significant deduction. Talk to your advisor before you buy.

3. Budget 2026: One Tax Deadline and Fewer Instalments

Some welcome simplification is on the way:

• One deadline: Starting with the 2027 tax year, all individuals, including the self-employed, would file and pay by May 15.
• Fewer instalments: From 2028, you would only need to pay quarterly instalments if you owe more than $7,500 (up from $3,000). About 1.1 million individuals and 185,000 small businesses would no longer need to pay them.
• Foreign property reporting: The T1135 filing threshold would double from $100,000 to $200,000 for tax years ending after 2026.

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​4. Budget 2026: Retirement Planning Changes on the Horizon

The government is consulting on an "RRSP for life" that would merge the RRSP and RRIF rules. You would no longer be forced to convert your RRSP at age 71, although minimum withdrawals would still apply. This is only a proposal for now, so don't change your retirement withdrawal plan yet. If you're a business owner with an Individual Pension Plan (IPP), new rules on plan surplus, investments, and plan revocation take effect between 2027 and 2028, with penalties of 50% to 100% in some cases. If you have an IPP, plan to review it in 2027. Also note that the Canada Caregiver Credit becomes refundable starting in 2027.

5. Modern Shared Office Space – Promo Rates to Dec 31

If you need a professional space to work or meet clients in Mississauga, we have a spot for you! We've just opened our shared office space at 5484 Tomken Road, Unit 34, Mississauga and are offering introductory promo rates until December 31, 2026.

• 5 private offices (furnished, monitors included)
• Boardroom for client and team meetings
• 6 open desks for flexible or hybrid work

Rates start from $20/day for desks and $40/day for private offices, with flexible daily, weekly, and monthly options.

If you're an accountant, consultant, freelancer, small business owner, or remote worker looking for a quiet, professional space near Tomken & Matheson, I'd love to show you around. To book a space or schedule a tour of the office space, text or call Ken at 416-706-3491

Looking to Optimize Your Taxes and Build Wealth in 2026?

Budget 2026 rewards those who plan ahead. Whether you're dealing with real estate, corporate structuring, or looking for ways to lower your personal tax bill, having a proactive tax plan is critical. If you'd like to understand how these budget changes affect you, or explore ways we can help you keep more of what you earn, feel free to book a no-cost consultation call with me here.

Note: Budget measures are proposals and may change before they become law.

Have a wonderful week ahead!

Ken Green, CPA, CA, MBA

GMS Chartered Professional Accountants LLP

Tax-Efficient Wealth Membership Network