Canada's Finance Minister, Chrystia Freeland, introduced Bill C-56, the Affordable Housing and Groceries Act, with two main components:
Tax Rebate for New Rental Builds
The bill enhances the GST Rental Rebate from 36% to 100% and removes phase-out thresholds for new rental housing projects. Builders investing in new rental properties can receive significant tax rebates to incentivize the expansion of rental properties and lower rental prices.
Competition Act Updates
The bill empowers Canada's Competition Bureau to investigate unfair industry behavior, including price fixing and price gouging. It also eliminates the efficiencies defense, allowing the bureau to block anti-competitive mergers and collaborations that limit consumer choice. These changes aim to boost competition and prevent price increases in Canada's markets, benefiting consumers.
