Today, the Honourable 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.
