R-4.5 Red Tape Reduction Act

Current to 2026-03-31 · last amended 2026-03-26

Contents
Provision — Preamble

Whereas Canadians and small businesses have expressed concerns about how the increased administrative burden imposed by regulations has affected the cost of doing business;

Whereas on April 1, 2012 the Government of Canada established a rule that each increase in the administrative burden on businesses must be offset with a corresponding decrease, one-for-one, and considers that it is desirable to establish that rule in legislation;

Whereas the one-for-one rule must not compromise public health, public safety or the Canadian economy;

Whereas the Government of Canada recognizes the importance of being transparent with regard to the implementation of the one-for-one rule;

And whereas the Government of Canada recognizes the importance of facilitating, in a transparent manner, the design, modification or administration of regulatory regimes to encourage innovation, competitiveness or economic growth while protecting public health and safety and the environment;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short Title

s. 1 — Short title

This Act may be cited as the Red Tape Reduction Act.

Control of Administrative Burden

Interpretation, Application and Purpose

s. 2 — Definitions

The following definitions apply in this Part.

administrative burden means anything that is necessary to demonstrate compliance with a regulation, including the collecting, processing, reporting and retaining of information and the completing of forms. (fardeau administratif)

business means a person or entity that engages in commercial activities in Canada, other than for a public purpose. (entreprise)

regulation means an instrument that is registered as a regulation under section 6 of the Statutory Instruments Act. (règlement)

s. 3 — Application

This Part applies to regulations made by or with the approval of the Governor in Council, the Treasury Board or a minister of the Crown.

s. 4 — Purpose

The purpose of this Part is to control the administrative burden that regulations impose on businesses.

Rule

s. 5 — Control of administrative burden

If a regulation is made that imposes a new administrative burden on a business, one or more regulations must be amended or repealed to offset the cost of that new burden against the cost of an existing administrative burden on a business.

s. 5(2) — Repeal of regulation

If a regulation is made — other than one that only amends a regulation — that imposes a new administrative burden on a business, a regulation must be repealed, unless one has already been repealed in accordance with subsection (1).

s. 6 — Policies and directives

The President of the Treasury Board may establish policies or issue directives respecting the manner in which section 5 is to be applied.

s. 7 — Regulations

The Governor in Council may, for the purpose of section 5, make regulations respecting

the manner of calculating the cost of an administrative burden;

the period within which measures must be taken to comply with that section;

the taking into account of regulations that are amended or repealed before a new administrative burden is imposed;

the application of that section to any regulation made, amended or repealed on or after April 1, 2012; and

the regulations that the Treasury Board may exempt from the application of that section and the categories for which, and the circumstances in which, such an exemption may be granted.

General

s. 8 — Immunity

No action or other proceeding may be brought against His Majesty in right of Canada for anything done or omitted to be done, or for anything purported to be done or omitted to be done, under this Part.

s. 8(2) — Validity of regulations

No regulation is invalid by reason only of a failure to comply with this Part.

Annual Report

s. 9 — Report — application of section 5

The President of the Treasury Board must prepare and make public each year a report on the application of section 5 during the 12-month period ending on March 31 of the year in which the report is to be made public.

s. 10 — Regulations

The Governor in Council may make regulations respecting the information to be included in the report and respecting the report’s form.

Exemptions to Encourage Innovation, Competitiveness or Economic Growth

Definitions

s. 11 — Definitions

The following definitions apply in this Part.

entity includes an individual, a corporation, a partnership, an unincorporated association or organization and His Majesty in right of Canada or of a province. (entité)

excluded Act means the Access to Information Act, the Auditor General Act, the Canada Elections Act, the Conflict of Interest Act, the Criminal Code, the Export and Import Permits Act, the Financial Administration Act, the Foreign Influence Transparency and Accountability Act, the Investment Canada Act, the Lobbying Act, the Nuclear Safety and Control Act, the Privacy Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or the Public Servants Disclosure Protection Act. (loi exclue)

Exemptions

s. 12 — Order

Subject to subsections (3) and (7), a minister may, by order, for a specified validity period of not more than three years and on any terms that the minister considers appropriate, exempt an entity from the application of

a provision of an Act of Parliament, except an excluded Act, if the minister is responsible for the Act;

a provision of an instrument made under an Act of Parliament, except an instrument made under an excluded Act, if

the minister is responsible for the Act, or

the body that made the instrument is accountable, through the minister, to Parliament for the conduct of its affairs; or

a provision of an Act of Parliament, except an excluded Act, or a provision of an instrument made under an excluded Act, if the minister administers or enforces the provision.

s. 12(2) — Requests not required to be considered

Subject to section 12.1, a minister is not required to consider a request for an exemption.

s. 12(3) — Conditions

A minister may make an order under subsection (1) only if

the minister is of the opinion that

the exemption is in the public interest,

the exemption would enable the testing of, among other things, a product, service, process, procedure or regulatory measure with the aim of facilitating the design, modification or administration of a regulatory regime to encourage innovation, competitiveness or economic growth in the clean technology or financial technology sector,

the benefits associated with the exemption outweigh the risks,

sufficient resources exist, and appropriate measures will be taken, to maintain oversight of the testing, manage any risks associated with the exemption and protect public health and safety and the environment, and

a feasible implementation plan has been developed;

the minister has engaged in a public consultation process for at least 30 days with stakeholders, including experts and entities in the relevant sector; and

the President of the Treasury Board has approved the exemption.

s. 12(4) — Exemption continues in force

For greater certainty, an exemption granted under subsection (1) continues in force until the end of the validity period specified in the order even if the testing referred to in subparagraph (3)(a)(ii) is completed before the end of that period.

s. 12(5) — Amendment or extension

Subject to subsection (8), a minister who has made an order under subsection (1) may, by order and on any terms the minister considers appropriate, amend it or extend the validity period of the exemption for a total period not exceeding six years only if the minister is of the opinion that

the conditions set out in subparagraphs (3)(a)(i) and (iii) are met;

the amended exemption or extension would enable the testing referred to in subparagraph (3)(a)(ii) to continue or, if such testing is already complete, would facilitate the design, modification or administration of a regulatory regime as a result of that testing;

sufficient resources exist, and appropriate measures will be taken, to maintain oversight of any continuing testing, manage any risks associated with the amended exemption or extension, and protect public health and safety and the environment; and

a feasible implementation plan has been developed that takes into account the amendment or extension.

s. 12(6) — Revocation or suspension

A minister who has made an order under subsection (1) may, by order, revoke it or suspend its application in whole or in part.

s. 12(7) — Two or more ministers

If, under subsection (1), two or more ministers may, by order, exempt the same entity from the application of the same provision, the entity may be exempted only if the ministers jointly make an order under that subsection with respect to the entity and provision.

s. 12(8) — Two or more ministers — amendment, extension, revocation and suspension

The following provisions apply if, in accordance with subsection (7), two or more ministers have jointly made an order:

the order may be amended only if the ministers jointly make an amending order under subsection (5);

the validity period of the exemption may be extended only if the ministers jointly make an extension order under subsection (5); and

the order made under subsection (1) is revoked or its application is suspended, in whole or in part, if one of the ministers makes a revocation or suspension order, as the case may be, under subsection (6).

s. 12(9) — Statutory Instruments Act

An order made under this section is not a statutory instrument within the meaning of the Statutory Instruments Act.

s. 12.1 — Order — entities operating in same sector

The following provisions apply if an order is made under subsection 12(1) that grants an exemption to an entity that is a business or a commercial entity:

the exemption granted in the original order must also be granted — by order under that subsection and for the same validity period — to any other entity that is a business or commercial entity that operates in the same sector if the minister or ministers who made the original order are of the opinion that the conditions in paragraph 12(3)(a) are met; and

if an order is made under subsection 12(1) with respect to the other entity referred to in paragraph (a), and the original order is subsequently amended or the validity period of the exemption granted by that order is extended by a minister or ministers, the minister or ministers must grant the same amendment or extension, by order under subsection 12(5), to that other entity if the minister or ministers are of the opinion that the conditions in that subsection are met.

s. 13 — Exemptions under other Acts

For greater certainty, the power to make an order under section 12 does not preclude or limit the exercise of a power to exempt under another Act of Parliament and vice versa.

Transparency and Parliamentary Oversight

s. 14 — Accessibility

Subject to subsections (2) and (3), a minister must, as soon as feasible but no later than 30 days after making an order under section 12, make the order and the following information publicly accessible:

a description of the decision-making process and a summary of the reasons for the order; and

a description of the process for providing comments or information to, or requesting information from, the minister in relation to the order.

s. 14(2) — Exception

The minister may exclude information that, in the minister’s opinion, would be inappropriate to make publicly accessible for reasons that include safety or security considerations or the protection of confidential or personal information.

s. 14(3) — Two or more ministers — accessibility

If two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), each of them must make publicly accessible the order and the same information under paragraphs (1)(a) and (b), with the same exclusions, if any, under subsection (2).

s. 14.1 — Canada Gazette

Subject to subsections (2) and (3), a minister must, within 30 days after the day on which they made an order under section 12, publish in the Canada Gazette the order and the information referred to in paragraphs 14(1)(a) and (b).

s. 14.1(2) — Exception

The minister may exclude information that, in the minister’s opinion, would be inappropriate to publish for reasons that include safety or security considerations or the protection of confidential or personal information.

s. 14.1(3) — Two or more ministers — publication

If two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), only one of them is required to publish the order and the information referred to in paragraphs 14(1)(a) and (b).

s. 14.2 — Report — minister

Subject to subsections (3) and (4), a minister must, within 90 days after the day on which they made an order under section 12, cause to be tabled a report in each House of Parliament and must, on request, appear before the appropriate committee of Parliament to explain the decision-making process and the reasons for the order.

s. 14.2(2) — Contents of report

The report must contain the order, the information referred to in paragraph 14(1)(a) and an assessment of any provision of an Act of Parliament, or of an instrument made under an Act of Parliament, that could be amended or repealed to encourage innovation, competitiveness or economic growth in the clean technology or financial technology sector.

s. 14.2(3) — Exception

The minister may exclude information that, in the minister’s opinion, would be inappropriate to include in the report for reasons that include safety or security considerations or the protection of confidential or personal information.

s. 14.2(4) — Two or more ministers — report

If two or more ministers have jointly made an order in accordance with subsection 12(7) or (8), only one of them is required to table the report and appear before the appropriate committee of Parliament.

s. 15 — Report

Subject to subsection (2), the President of the Treasury Board must prepare and make public each year a report on the application of section 12 during the 12-month period ending on March 31 of the year in which the report is to be made public. The report must include a list of the orders made under section 12 that were in effect during that period and the names of the ministers who made them.

s. 15(2) — Exception

The President of the Treasury Board is not required to prepare a report if no orders made under section 12 were in effect during the period referred to in subsection (1).

s. 15(3) — Tabling

The President of the Treasury Board must cause the report referred to in subsection (1) to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is made public.

s. 15(4) — Referral to Committee

The report must be referred to the Standing Committee on Government Operations and Estimates of the House of Commons or, if there is not a Standing Committee on Government Operations and Estimates, the appropriate committee of the House of Commons.