In the spring federal budget, Prime Minister Justin Trudeau proposed an amendment to the capital gains tax, to take effect in the summer. But, with the announcement that Trudeau is stepping aside before the amendment receives Royal Ascent, Canadians are left questioning who their next leader will be, and, for many, what this will all mean for the proposed amendment.

On January 6, Prime Minister Trudeau announced his intention to resign as leader of the Liberal Party and as Prime Minister, once his successor is chosen. The Liberal Party has set March 9 as the date to vote for the new leader and they will be sworn in as Canada’s next Prime Minister shortly afterwards.

Also on January 6, the Governor General granted the Prime Minister’s request to prorogue Parliament until March 24th, 2025. Parliament had been scheduled to resume on January 27th.

The suspension of Parliament by prorogation means the termination of the current session of the 44th Parliament, which was summoned following the 2021 federal election, and resulted in a Liberal minority government.

With this announcement, all business is terminated, meaning any bills that have not already received Royal Assent are said to “die” on the Order Paper. In order to proceed with the bill in a new session, it must be reintroduced.