What the Liberals’ affordability bill means for Canadians, and how it will affect housing and food prices
On Thursday Minister of Finance Chrystia Freeland tabled Bill C-56, which removes the GST on new rental housing and amends the Competition Act
OTTAWA — Minister of Finance Chrystia Freeland tabled on Thursday Bill C-56, the Affordable Housing and Groceries Act, which removes the GST on new rental housing construction and amends the Competition Act to enhance competition, particularly in the grocery sector.
Here is a rundown of what this bill means for Canadians, and how it could affect construction housing and grocery prices moving forward.
Which buildings would be subject to the GST rental rebate?
The goal of the measure is to incentivize the construction of long-term rentals, meaning more apartment buildings, student housing, and seniors residences.
Although these details will be included in regulation at a further date, senior government officials indicated in a technical briefing to the media that the measure is directed at buildings with at least four private apartment units, or residences with at least 10 private rooms.
The other requirement is that 90 per cent of the residential units in the buildings have to be designated for long-term rentals. The measure would not apply to luxury condominiums or rental units to be converted afterwards into short-term vacation rentals, like an Airbnb. …[Continue Reading]