Budget 2025 Sets the Stage for Tax and Labour Compliance in Trucking

Source: CTA

Ottawa, November 2025 — After more than a decade of divided compliance models in the Canadian trucking industry, the federal government has taken a decisive step toward unifying the playing field.

The Canadian Trucking Alliance (CTA) applauds the 2025 Federal Budget for creating a clear foundation of fairness and compliance — where every carrier must operate under the same tax and labour standards.

Tackling Worker Misclassification

Budget 2025 allocates $77 million over four years starting in 2026-27 for the Canada Revenue Agency (CRA) to address non-compliance related to personal services businesses and lifts the moratorium on reporting service fees in the trucking sector.

These measures directly target the Driver Inc. scheme, where drivers are misclassified as independent contractors, denying them workplace protections, pensions, and insurance benefits.

The budget also amends the Income Tax Act and Excise Tax Act to allow the CRA to share information with Employment and Social Development Canada (ESDC) for the enforcement of the Canada Labour Code.

Cracking Down on Wage Theft

The government reaffirmed its intent to raise penalties against employers who commit wage theft — one of the most common violations in federally regulated industries. Consultations with both workers and employers are expected in the coming months.

Industry Applause

“Budget 2025 is an important day for the industry as it firmly establishes that all companies will once again compete under the same tax and labour code rules,” said CTA President and CEO Stephen Laskowski.

He commended Prime Minister Mark Carney, Minister François-Philippe Champagne, and Minister Patty Hajdu for their leadership in ensuring that this long-awaited fairness becomes a reality.

CTA will continue working closely with CRA, ESDC, and provincial trucking associations to develop outreach campaigns informing carriers, drivers, and shippers about these new compliance expectations.

Additionally, Budget 2025 reinstates Accelerated Investment Incentives and Immediate Expensing, with CTA seeking clarification on whether trucking equipment will qualify. The government also announced major investments in multimodal infrastructure to enhance Canada’s trade connections and freight efficiency.