Affordable Living Legislation Gains Royal Assent

The global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty. In response, Canada's new government is focused on what we can control: building a stronger economy to make life more affordable for Canadians.

Bill C-4, the Making Life More Affordable for Canadians Act, today received Royal Assent. This legislation brings key affordability measures into law, which will save Canadians hundreds of dollars each year. These measures include:

• A middle-class tax cut: By lowering the first marginal personal income tax rate from 15 per cent to 14 per cent since July 1, 2025, nearly 22 million Canadians will benefit from tax relief of up to $420 per person, saving two-income families up to $840 this year. The bulk of tax relief will go to those with incomes in the two lowest tax brackets (i.e., those with taxable income under $117,045 in 2026), including nearly half to those in the first bracket ($58,523 and below in 2026). Canadians whose 2025 income was not subject to payroll deductions will realize this tax relief this spring, when they file their 2025 income tax return.
• The first-time home buyers' rebate: Canada's new government is eliminating the Goods and Services Tax (GST) for first-time home buyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million. This tax cut will save Canadians up to $50,000-allowing more young people and families to enter the housing market and make the goal of home ownership a reality for more Canadians. The rebate will generally apply to agreements of purchase and sale entered into on or after March 20, 2025, and before 2031. With Royal Assent of the bill, the Canada Revenue Agency (CRA) will now be able to start processing rebate claims.
• Permanently removing the federal consumer fuel charge from legislation: Canada's new government cancelled the consumer fuel charge-directly allowing Canadians to save money from the price they pay at the pump. The government also removed the requirement for provinces and territories to have a consumer-facing carbon price as of April 1, 2025. These actions have reduced gasoline prices in most provinces and territories by up to 18¢/L in comparison to 2024-2025, lowering inflation. Bill C-4 will give Canadian consumers and businesses certainty that the consumer carbon price is being permanently removed by eliminating it from federal legislation.