Fall Economic Statement – Key Takeways for Retailers 

The federal government released its Fall Economic Statement yesterday under chaotic circumstances. The day started with Finance Minister Chrystia Freeland resigning from her post and cabinet hours before the tabling of the document. RCC is following the rapidly moving political crisis in Ottawa and will keep members posted if any implications for the retail industry arise.

Most of the document is aspirational and few details were given. That said, the statement did touch on a few important areas for retailers. Key elements of the Fall Economic Statement included: 

• The government plans to reinstate the Accelerated Investment Incentive. This program allows all sizes of business to accelerate the accounting depreciation on capital investments in areas like the purchase of energy conservation equipment, or zero emission vehicles. This program will last from 2025 and start a four-year wind-down in 2030. This was the single largest measure announced.
• Specifically for small and medium sized businesses there will be money to help them adopt digital technology with a focus on AI.
• The government announced its intention to introduce legislation to create a new supply chain “due diligence” regime, in addition to new measures to strengthen Canada’s ban on imports of goods produced with forced labour.
• To help with the fight against retail crime, the government plans to make changes to the Criminal Code that will make bail and sentencing laws stricter.