Room to grow: a practical Conservative agenda for small business

2026-10-22 · Federal Conservatives · Small business · Opinion / voter resource

Back the people who build local opportunity

Small Business Week is a chance to recognize the people who turn an idea into a livelihood and a storefront into part of a community. Pierre Poilievre’s October 21 statement celebrates entrepreneurs, owners and workers. Alongside that message, Conservatives have offered two specific tax proposals that deserve a practical, constructive look.

Brad Vis, the party’s small-business shadow minister, proposes raising the GST/HST small-supplier threshold from $30,000 to $60,000 and the federal Small Business Deduction business limit from $500,000 to $700,000. Both would be indexed to inflation. These are party proposals, not new rules businesses can apply today. The positive aim is clear: make starting and growing a Canadian business easier.

Two thresholds, two different jobs

The GST/HST threshold concerns sales-tax registration, not an income-tax exemption. CRA guidance still describes a $30,000 small-supplier threshold for most businesses, tested over a single calendar quarter or consecutive quarters. It considers taxable supplies rather than simply the profit left after expenses. The timing rules differ depending on how the threshold is crossed.

A higher threshold could let more small operators remain outside mandatory registration, reducing collection and reporting obligations for those who qualify. That is a credible simplification objective. But it would not mean that the first $60,000 of everyone’s earnings becomes income-tax-free, nor that every existing registrant could immediately stop charging tax.

There are important choices and exceptions. CRA permits eligible small suppliers to register voluntarily; registered businesses may claim input tax credits on qualifying costs. Those choosing not to register cannot claim those credits. Taxi and commercial ride-sharing operators face mandatory registration even when they are small suppliers. Transition rules and the treatment of exceptions therefore matter as much as the headline threshold.

Give growing firms room to reinvest

The second proposal concerns corporate income tax. CRA’s guide says Canadian-controlled private corporations may qualify for the Small Business Deduction, with a maximum business limit of $500,000 for a corporation not associated with another corporation. Its calculation involves eligible active business income and other limits; this is not a universal deduction for every self-employed person.

CRA lists a standard net federal rate of 9% for corporations claiming the deduction and 15% after the general tax reduction. Raising the business limit could extend access to the lower rate for qualifying growing firms. It would not make $700,000 of sales or profits tax-free. Provincial corporate taxes also remain a separate part of the picture.

Eligibility needs attention. Associated corporations allocate the business limit among themselves, while taxable capital and passive investment income can reduce it. A responsible explanation should keep those qualifications visible rather than promise identical savings to every shop, contractor or family business. The benefit depends on the firm’s structure, income and applicable rules.

Indexation deserves a clear implementation plan

Indexing thresholds is an appealing part of the Conservative proposal. Inflation can push dollar amounts higher without an equivalent improvement in a business’s real purchasing power. Regular adjustment could make the rules more predictable. That is an editorial case for the approach, not proof that either proposal will produce a particular number of jobs.

The October 21 release specifies the proposed thresholds and inflation indexing but does not provide a commencement date, detailed transition provisions or a fiscal costing. Voters should ask which inflation measure would apply, when adjustments would occur and how existing registrants would be treated. Those questions help turn a worthwhile direction into a workable policy.

Ask for a public cost estimate and examples covering different business types, too. Show who benefits, who does not and how administrative savings would be measured. These are our suggested accountability tests, not additional commitments found in the release. Supporting entrepreneurs and asking for transparent implementation belong together.

← Back to all blog posts