Ottawa – Chrystia Freeland, Deputy Prime Minister and Minister of Finance, introduced Bill C-56, the Affordable Housing and Groceries Act, the first piece of government legislation introduced in the fall parliamentary sitting. This legislation would deliver urgent action to help make life more affordable for Canadians by removing the GST on new rental housing construction across the country. This legislation would also increase competition, particularly in the grocery sector.
Bill C-56, the Affordable Housing and Groceries Act would:
- Enhance the Goods and Services Tax (GST) Rental Rebate on new rental housing, to incentivize the construction of more apartment buildings, student housing, and senior residences. This enhancement increases the GST Rental Rebate from 36 per cent to 100 per cent and removes the existing GST Rental Rebate phase-out thresholds, for new rental housing projects. For a two-bedroom rental unit valued at $500,000, the enhanced GST Rental Rebate would deliver $25,000 in tax relief.
- Amend the Competition Act to enhance competition, particularly in the grocery sector. The proposed amendments to the Competition Act will:
- give more power to the Competition Bureau to investigate when industries are behaving unfairly, for example where price fixing or price gouging is occurring, and take enforcement action;
- remove the efficiencies defence, to end anti-competitive mergers that raise prices and limit choices for Canadian consumers; and
- empower the Bureau to block collaborations that stifle competition and consumer choice, particularly in situations where large grocers prevent smaller competitors from establishing operations nearby.
The legislation introduced in Parliament today represents the latest set of affordability measures to support Canadians with the cost of living. The government will continue fighting for the middle class by using every available tool to make life more affordable from coast to coast to coast.
“Our priority since 2015 has been to build a strong middle class so everyone can succeed. That’s why today I introduced our government’s first piece of legislation this fall, the Affordable Housing and Groceries Act, which removes the GST on new apartment construction, and will also help stabilize grocery prices for Canadians. With provinces like Ontario and Newfoundland and Labrador following our lead by eliminating provincial taxes on new rentals, we’ll get more rental housing built faster, and encourage new builds to break ground. We will continue working to deliver for Canadians from coast to coast to coast.” – Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“More competition and less consolidation means lower prices. Our government is taking action to improve competition in Canada because that is the best way to advance the interests of consumers, and it will also make our economy more dynamic. We heard Canadians’ concerns, and we will always have their back.” – François-Philippe Champagne, Minister of Innovation, Science and Industry
“By removing the GST from new apartment construction, we are going to create more units at prices Canadians can afford across Canada. This is going to get builders to build projects that otherwise weren’t going to go ahead.” – Sean Fraser, Minister of Housing, Infrastructure and Communities