Federal Government to Nix GST on New Rental Builds

Prime Minister Justin Trudeau is set to bring some relief to future tenants and the real estate market. According to an inside source, Trudeau will announce this Thursday that the federal government plans to remove the GST from the construction of new rental apartment buildings. This anticipated announcement has been eagerly awaited since it was initially promised during the Liberals’ 2015 election campaign.
This move is anticipated to lower the costs of both labour and materials for homebuilders, playing a significant part in Trudeau’s forthcoming affordability announcement. Alongside the Prime Minister, Finance Minister Chrystia Freeland, Housing Minister Sean Fraser, and Industry Minister François-Philippe Champagne will be present for the declaration in London, Ont.
This announcement emerges as the majority of Liberal MPs congregate in London for a three-day retreat. Their focus? Strategizing for the imminent Parliament session. This strategy becomes crucial as current poll numbers indicate a dwindling confidence among Canadians, with many believing the Conservatives might offer better solutions for housing and affordability concerns.
However, the federal announcement has garnered mixed reactions. Ontario’s government, for instance, has welcomed the decision, with plans to drop provincial sales taxes. In contrast, the federal Conservatives, under the leadership of Pierre Poilievre, have been sceptical, questioning Trudeau’s commitment given the gap since the 2015 promise. Meanwhile, the NDP voiced their concerns about the length of time taken for this decision and whether luxury condos would benefit from the change.
Nevertheless, the Ontario Progressive Conservative cabinet has shown strong support. They have proposed to remove their portion of the HST on “purpose-built rental housing.” Housing advocates and city councils, having championed this change for years, are likely to see this as a win.
Amid the political hustle and bustle, Halifax MP Andy Fillmore pointed out that the discussions at the caucus retreat largely centred around the challenges of affordability and improving communication about initiatives to help with the cost of living. Quebec MP Steve MacKinnon emphasized the importance of provincial support to stabilize the housing market after its surge.
As the debate heats up and strategies form, one thing is clear: with these policy changes on the horizon, Chestermere’s housing market and potential renters might be in for an exciting period. The focus now shifts to the real-world implications of these policies once implemented.