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ARTICLE · 17 NOVEMBER 2025

Federal Budget 2025: Key Aviation Sector Updates

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The 2025 Federal Budget introduces several impactful changes for Canada's aviation sector, with direct implications for aircraft owners, operators, vendors, and infrastructure stakeholders.

CanadaTransport
Benjamin Gross
Benjamin Gross
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The 2025 Federal Budget introduces several impactful changes for Canada's aviation sector, with direct implications for aircraft owners, operators, vendors, and infrastructure stakeholders.

Luxury Tax on Aircraft Eliminated

Effective immediately, the federal government has repealed the Select Luxury Items Tax on aircraft valued over $100,000. This includes the removal of vendor registration and filing obligations by the end of 2025, with automatic deregistration by February 2028.

Client Impact: Aircraft purchasers and lessors will benefit from reduced acquisition costs and simplified compliance. Vendors can expect improved cash flow and operational efficiency, while the broader aviation market gains competitiveness and liquidity.

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