Canadians still waiting for the removal of GST on new homes
Parliament resumed last week, and there are many issues being bounced around the House of Commons, in the Senate, and at various committees.
One piece of urgent legislation is Bill C-4, which includes the proposed GST exemption on new homes. Its delay has caused buyers to stop buying all summer. Yet for over a week at the House of Commons Finance Committee, committee members, from all parties, have shown lackluster urgency in getting this legislation passed, putting politics ahead of a key measure to help restore affordability for Canadians.
Passing Bill C-4: A Critical Step to Support Housing Affordability
Bill C-4 An Act respecting certain affordability measures for Canadians, was introduced back in May to remove the GST for first-time buyers on homes under $1 million and lower it on homes between $1 million and $1.5 million. It needs to be passed and implemented immediately, and the exemption should be expanded to all buyers.
This Bill aims to help middle-class Canadians access homeownership and simultaneously spur housing starts at a time when Canada desperately needs to double the pace of new housing supply. Yet, while some Parliamentarians appear to view this measure as a “done deal,” it still hasn’t passed.
All of this is having knock-on effects for middle-class Canadians who want to access homeownership, while also impacting home builders’ ability to retain their workers during a time when cost of living concerns reach new heights.
CHBA CEO Kevin Lee explains why it’s time to put politics aside and pass Bill C-4.
The slow implementation is keeping both prospective buyers and those looking to renovate to create additional housing units on the sidelines. All of this adds up to less housing being built, increasing the housing supply gap and adding more housing challenges in many regions that are already suffering tremendously, especially in Ontario and B.C. Further, if more new homes for ownership aren’t built, it will put even more pressure on Canada’s rental and social housing requirements.
The impact the slow passing of this legislation is having cannot be overstated. Policies must be enacted in a manner that gives them time to be effective. And in the case of Bill C-4, the announcement without enactment has actually had very negative effects. Policy inaction will compound the challenges of meeting Canada’s housing supply targets.
Urgent Action Needed
Bill C-4 is currently before the House of Commons Standing Committee on Finance, waiting to receive Royal Assent.
This is low-hanging fruit that will help get middle-class Canadians into the homes they want to live in.
While the proposed legislation would have significantly more impact if it included all buyers of new homes, was indexed for inflation in future, and was made applicable to renovations that create added housing units, like additional dwelling units or secondary suites, it is imperative that Bill C-4, as it stands, receives Royal Assent swiftly.
The solution is clear: all committee members must step up, put politics aside, and get this legislation passed immediately. Canadians cannot afford further delays – addressing Canada’s housing affordability challenges is too important to not make this legislation a top priority.