Several measures in Tuesday’s budget and its digital annexes could have a significant impact on many Canadians. Here are five noteworthy ones.
Notification of Bank Branch Closures
Banks have been closing branches in recent years, especially affecting rural areas where distances between branches can be substantial. The Canadian Bankers Association reported a nine percent decrease in the number of bank branches from 6,205 in 2012 to 5,656 in 2022, with a continuing decline since then.
The budget will change the Bank Act to mandate that banks publicly announce branch closures on their websites and prohibit certain account switching or closure fees from the time a branch closure notice is given until 12 months after the closure.
Additionally, the government will enforce stricter rules to ensure branches have adequate processes to verify identification documents for remote account openings, benefiting seniors and Canadians in rural and remote areas.
Long-Term Care Costs for Veterans
The federal government and Canadian veterans have clashed over long-term care costs in recent years. To resolve this, the government aims to clarify the rules retroactively regarding accommodation and meal charges for veterans in long-term care.
Changes to the Department of Veterans Affairs Act will specify the methodology used to calculate these charges, along with clarifications on indexation adjustments under the Canadian Forces Members and Veterans Re-establishment and Compensation Act.
Canada Post Pricing Autonomy
Canada Post has long sought the authority to set its own postage rates. The budget now grants Canada Post the power to regulate postal rates independently, aiming to enhance the financial sustainability of its operations and benefit all Canadians, including those in remote areas.
Regulation of Predatory Debt Advisors
The government addresses the issue of predatory debt advisors preying on individuals struggling with debt. It proposes civil remedies, including restitution, for non-compliance with the Bankruptcy and Insolvency Act, and plans to increase maximum criminal fines for individuals and corporations under this legislation.
Enhanced Cheque Cashing Accessibility
The budget increases the immediate payout amount for deposited cheques to $150, aiming to reduce reliance on expensive short-term credit for low-income individuals and seniors. The government also intends to shorten the waiting period for cheque fund release, benefiting those more likely to receive payments by cheque with limited financial resources.
