New federal legislation to encourage the construction of rental homes
On September 14, 2023, the Prime Minister announced that the government will introduce legislation to enhance the Goods and Services Tax (GST) Rental Rebate on new purpose-built rental housing, to incentivize the construction of much-needed rental homes for Canadians.
The removal of GST will apply to new purpose-built rental housing, such as apartment buildings, student housing, and senior residences built specifically for long-term rental accommodation. To read more from this release, click here.
Bill C-56, the Affordable Housing and Groceries Act
On September 21, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, introduced Bill C-56, the Affordable Housing and Groceries Act. In relation to affordable housing, this bill will:
- 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. Click here to read more about Bill C-56.
Nova Scotia drops provincial portion of HST on new apartment construction
On September 21, the Government of Nova Scotia announced that it would drop the provincial portion of HST (10%) on new apartment builds in tandem with the federal government’s new legislation.
The change is estimated to cost between $80 million and $100 million a year. The Province will reassess the situation after two years.
Relavent News Coverage —
Looking for more information? Click below for more coverage of the announcement.
- Nova Scotia to remove provincial portion of HST from new apartment building construction projects (CBC News)
-
Nova Scotia drops provincial portion of HST on new apartment construction (The Halifax Examiner) *Please note: this article is behind a paywall.