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Notice to CARAC members,

The Service Fees Act (SFA) changes the Government of Canada’s approach to fees for services, and how departments create more transparency for Canadians. The act requires government departments to:

  • Report annually on the cost of the services delivered and the revenue collected
  • Establish service standards for each fee collected, and make them accessible to the public
  • Track and report on service performance results
  • Remit fees when service standards are not met, and report on the amount of remission
  • Adjust fees annually for inflation, per the Consumer Price Index (CPI)

The implementation of the various components of the SFA is staggered: 

 Adjusting Regulatory Fees for Inflation

Starting April 1, 2019, Transport Canada will adjust fees according to the Consumer Price Index (CPI), also known as inflation, set by Statistics Canada.   

For the period of April 1, 2019 to March 31, 2020, a rate of 2.2% will be applied to most Transport Canada regulatory fees.  Since inflation is calculated on an annual basis, our fees will be adjusted every April 1 to reflect the new inflation rate.  

Not all fees are subject to inflation. In an effort to reduce a certain level of administrative burden on departments and stakeholders, the Treasury Board Secretariat is establishing into regulation a materiality threshold to limit the volume of fees that would be subject to the SFA requirements, which would include inflation (CPI) and remittance. 

In anticipation of the Low Materiality Regulations, Transport Canada will only apply CPI to material fees.

 

Any payments made on or after April 1 will be subject to the new rates regardless if the associated application was submitted prior to that date. There are no changes to fees for applications received and paid on, or before March 31, 2019.

Information on the new fees is available to the public on the following webpages:

Transport Canada is Pushing Ahead with its Fee Modernization Initiative

Work on updating and modernizing fees continues. The Fee Modernization Initiative aims to review existing fees that have not been updated in over 20 years, and to introduce new fees for services that have long been delivered free of charge. 

Developing and implementing fees is not a small undertaking, nor one that is done in isolation. We are committed to including stakeholders in the consultation process, and have taken additional steps prior to the regulatory process to engage and consult more effectively and meaningfully. 

To learn more on this initiative and to share your ideas, visit the Let’s Talk Fee Modernization website.

If yourself or your members have questions on what is presented above, please email our Communications Centre at services@tc.gc.ca.  All comments, questions, suggestions or complaints received are tracked in ccmMercury ATS and will be given appropriate priority to resolve them completely.