Media reports from the 2015 federal budget tabled by Finance Minister Joe Oliver on April 21 indicate that two sectors have emerged as winners – manufacturers and small business.
This analysis is significant for the Region of Waterloo, where one in five jobs is directly related to manufacturing. Local companies will benefit from the ten- year extension of the accelerated capital cost allowance (ACCA), a measure first introduced in 2007 and extended through subsequent budgets. The ACCA provides more generous writeoffs for new equipment and machinery purchased to increase both productivity and domestic competiveness levels across the global economy.
Our Chamber, based on discussions with local manufacturers, has been strong advocate for the ACCA and has recommended extension in numerous budget submissions to the federal government. The ten- year announcement provides a significant commitment to the manufacturing sector and their capacity to meet local and national economic growth objectives.
Recent estimates indicate that small businesses across Canada create over 100,000 jobs annually. In Waterloo Region, we possess approximately 600 active startups in a globally-recognized ecosystem for supporting growth. The budget has proposed a reduction in the small business tax rate from 11 percent to nine percent by January 2019, resulting in savings of $2.7 billion and creating revenue which in turn can be invested in technology, innovation and job creation.
Our Chamber will continue our advocacy efforts to support Waterloo Region businesses, across all sectors, on meeting the challenges of national and international market competitiveness. The 2015 federal budget is providing the foundation for opportunity.