BY GREG TONER
November 6, 2026 | VetCPA
The federal budget came out yesterday, and for most independent practice owners, three changes deserve your attention: an immediate write-off for equipment, higher thresholds before you have to pay tax instalments, and a new May 15 deadline for personal returns. The rest of it (pension plans, preferred shares, multi-clinic corporate groups) only affects you if your structure includes them.
Everything below is proposed. None of it is law until legislation passes, and a few items are consultations, so the details can still change.
Productivity Mega Deduction
Not-so-mega in my opinion. It really just changes the timing of deductions, not the size of the deduction.
The government confirmed the Productivity Mega Deduction it announced earlier. Eligible capital assets acquired on or after September 15, 2026, could be deducted in full in the year they become available for use, rather than being spread over several years through capital cost allowance.
For a vet practice, that likely covers the big-ticket items: X-ray and ultrasound equipment, surgical and dental equipment, sterilization equipment, exam and monitoring equipment, plus computers and office furniture. The budget names healthcare equipment as an intended beneficiary, although whether a specific asset qualifies will depend on the final legislation and how that asset is classified for tax.
Say your corporation buys $150,000 of qualifying equipment. You could deduct the full $150,000 in the year it goes into use, and at an illustrative 12% corporate rate, that's $18,000 less tax this year (assuming you have the taxable income to absorb it). Your total deduction over the life of the equipment stays the same. You get it sooner, which helps cash flow and makes the loan easier to carry, but if you sell the equipment in the future, you’ll have to pay tax on the sale price.
Ultimately, this is only a timing difference in receiving the tax benefits.
Don't buy equipment for the deduction. Buy it because your caseload needs the capacity. If you were already planning a purchase, this is a nice windfall, but it shouldn’t change your plans.
Change in Instalment Requirements
For taxation years starting on or after January 1, 2028, the threshold for required instalments would rise from $3,000 to $7,500 for corporations and for individuals outside Quebec, and from $1,800 to $4,500 for individuals in Quebec. The new thresholds would be indexed to inflation.
If you are not incorporated and most of your income comes from a business or professional practice, you could make one annual instalment instead of four. That payment would equal two-thirds of the year's net tax owing, due December 31, with the balance due at the regular deadline - May 15, see below.
New Personal Tax Deadline - May 15
Starting with the 2027 tax year, May 15 would become the standard date to file and pay personal income tax, so your 2027 return would be due May 15, 2028.
Currently, for the 2026 tax year, most people file and pay by April 30. Self-employed people and their spouses or common-law partners can file by June 15, but must still pay by April 30. Both groups would move to May 15.
If you're incorporated and normally file by April 30, you get two extra weeks. If you're a sole proprietor, you'll have to file a month earlier, but get to pay two weeks later.
The main benefit here is to mitigate the risk of missing an investment slip. In recent years, we’ve seen slips arriving later and later in April, even though they are due to be filed with the CRA by the end of February or March, depending on the type of investment.
Other Notable Changes
The new $15 million capital gains exemption. The Canada Growth Incentive would give eligible individuals a capital gains exemption of up to $15 million per qualifying business. The proposed rules exclude certain professional practices, healthcare practitioners, and businesses whose principal asset is the reputation or skill of employees. Veterinarians aren't named in those exclusions, but a vet practice looks unlikely to qualify, and we'll revisit that when the legislation is available. The existing Lifetime Capital Gains Exemption of $1.25 million should still be available for most practice sales, with proper planning, namely, purification where needed, and deal structuring.
Moving losses between related corporations. This one is a consultation only, so you can't use it yet. The government is asking whether certain wholly owned corporate groups should be able to transfer current-year non-capital losses between related corporations. For a multi-clinic owner, that could eventually mean using an established clinic's income to absorb the start-up losses of a new clinic held in a separate corporation. As proposed, it would start with groups operating within the same province or territory (which should be ok for most owner-managed vet practice groups), subject to several other conditions. This is currently only proposed, and we won't see legislation or updated rules until well into 2027.
Administrative Changes
Capital dividend elections and certain other corporate elections would no longer need certified copies of directors' resolutions filed with the CRA.
The standard window to object to an assessment would grow to one year after the assessment for most taxpayers. Individuals and graduated rate estates would generally get the later of one year after assessment or two years after the filing deadline. The current process for applying for an extension would go away.
CRA could report income tax and GST/HST debts over $50,000 to credit bureaus, but only after objection and appeal rights are exhausted, advance notice is given, reasonable collection efforts are made, and you've had a chance to arrange repayment.
The Form T1135 foreign property threshold would rise from $100,000 to $200,000, with simplified reporting for specified foreign property costing less than $500,000.
Several fixed-dollar penalties would also increase, so filing on time and accurately continues to be important.
A few other items could touch you or your team personally: enhancements to the Canada Workers Benefit for lower-income employees, a refundable Canada Caregiver Credit starting in 2027, optional flat-amount deductions for certain expenses (eligible moving expenses among them), and a consultation on simplifying RRSPs and RRIFs that includes removing the mandatory conversion at age 71 while keeping minimum withdrawals. The small business share rollover rules would also get more flexible, although that rollover won't be available for every practice sale.
What Stays the Same
The budget doesn't change the federal small business deduction rate, the general capital gains inclusion rate, the Lifetime Capital Gains Exemption limit, or the GST/HST treatment of ordinary veterinary services. Most existing planning for vet practices is still valid.
What To Do Now
For most independent practices, this budget comes down to three things: when you buy equipment, when you pay tax, and how much paperwork you file. If you're buying equipment in the next twelve months, you’re likely eligible to receive the tax benefit from that sale up front. If you own more than one clinic corporation, book a review before January 2027. If none of that applies, write May 15, 2028 on your calendar and carry on running your practice.
This summary reflects proposals announced in Federal Budget 2026 on November 5, 2026. It is general information and not tax advice specific to an individual taxpayer or corporation.
Greg Toner, CPA, CA, TEP, CLU, is principal at VetCPA.
