Question Period Note: 2022-2023 SUPPLEMENTARY ESTIMATES (C) – LABOUR MOBILITY DEDUCTION

Why is the Canada Revenue Agency seeking funding in the Supplementary Estimates (C) for the administration of the labour mobility deduction for tradespeople?

• The Canada Revenue Agency (CRA) is a client-focused agency which exists to serve Canadians.
• The CRA is seeking $1M in funding to make the necessary system changes to accommodate the administration of the new Labour Mobility Deduction as announced in Budget 2022.
• The Labour Mobility Deduction recognizes certain travel and relocation expenses of workers in the construction industry for 2022 and subsequent years. An estimated 140,000 workers are expected to benefit from this deduction each year.
• Improving labour mobility for workers in the construction trades can help to address labour shortages and ensure that important projects, like housing, can be completed across the country.

Through the 2022-2023 Supplementary Estimates (C), the Canada Revenue Agency (CRA) is seeking $1M for the administration of the labour mobility deduction for tradespeople as announced in Budget 2022.

The funding will be used to make the necessary changes to the CRA’s T1 systems to accommodate the administration of the new Labour Mobility Deduction, which recognizes certain travel and relocation expenses of workers in the construction industry.

Applicable to the 2022 and subsequent taxation years, the Labour Mobility Deduction would provide recognition of up to $4,000 per year in travel and temporary relocation expenses to eligible tradespersons and apprentices.

An estimated 140,000 workers are expected to benefit from this deduction each year.

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