Canada has built a new support for the creative sector into the new federal budget.
The Carney government’s 2026 federal budget was tabled Thursday afternoon (Nov. 5), and it includes a new and forthcoming Canada Creative Credit, described as a tax relief “for Canadian artists to foster creativity, artistic production and cultural entrepreneurship.” In a subsequent message posted to X, prime minister Mark Carney revealed that Canadian artists can benefit from an exception of up to $45,000.
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The new budget also confirms the government’s planned investment of $600 million into the audio and audiovisual sectors in Canada, which was originally announced in June as a means to provide “stability and immediate support” to the creative industry amid ongoing debates surrounding the CRTC’s CanCon regulations and the implementation of the Online Streaming Act. While the sum was described as an annual investment in the government’s initial news release, the current budget only lists the amount for 2026-27 fiscal year.
Several Canadian music organizations have welcomed the news, including SaskMusic, the East Coast Music Association and the Canadian Live Music Association (CLMA), who says it “looks forward to working with partners across government and cultural sectors to ensure investment in live music activity in Canada.” Adisq, the Québec Association for the Recording, Concert and Video, highlighted the temporary nature of the investment and the need for “stable, foreseeable financial resources” that can adequately meet the challenges companies are faced with, but also shared a positive reaction.
“The local music industry operates in a challenging economic and technological environment where our music struggles to reach its audiences. By following through on its June commitment, the government will provide tangible support to our sector,” says Eve Paré, executive director of Adisq.
Canada stepped in to announce the $600 million investment after the CRTC announced its intention to triple the base contribution that major streamers and Canadian broadcasters who make over $25 million in annual revenue must pay to fund the creation Canadian content, raising it from 5 to 15%.
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While some Canadian music organizations and associations like FACTOR and Music Canada applauded the government for providing a financial boost to the sector, others such as the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) criticized it for potentially letting foreign streaming platforms off the hook. Nonetheless, the CRTC doubled down on its plans to implement its CanCon regulations in August after trade talks between the U.S. and Canada fell through.
“It is essential that the CRTC have the full discretion needed to establish a fair framework in which all stakeholders in the system—whether traditional or digital—contribute their fair share to local culture. They must help fund it and ensure its discoverability. This is the prerequisite for establishing a sustainable broadcasting system that effectively supports our music,” Paré adds.
The 2026-27 federal budget is offering direct support to Canadian broadcasting by offering an additional $300 million in funding for CBC/Radio-Canada, which will be allocated over two years. As Canada gears up to celebrate its 160th birthday, the country is also looking to provide an additional $10M to the Building Communities through Arts and Heritage (BCAH) program, which provides funding to local festivals, among other initiatives. Ottawa Bluesfest is one of 20 festivals nationwide highlighted in the budget that received funding from the program last year and poised to receive additional funding for 2027-28, per the budget. While Festivals and Major Events Canada (FAME) acknowledges the boost, it says it is “too temporary to have the transformative impact the sector has been seeking.”
The government is also allocating $393.2 million over three years to “advance Canada’s Francophonie leadership objectives” as it gears up to host the Francophonie Summit in Ottawa-Gatineau in 2028. Adisq salutes the government’s investment, saying that French-language music “will be present.”
This story was originally published by Billboard Canada.
