Bill C-56, otherwise known as the Affordable Housing and Groceries Act, received Royal Assent on December 15, 2023.  In addition to amending the Competition Act to help stabilize prizes in the grocery sector, Bill C-56 will remove the Goods and Services Tax (GST) from new rental housing developments to incentivize the construction of more apartment buildings, student housing, and seniors’ residences. This would mean, for example, that a two-bedroom rental unit valued at $500,000, would see a savings of $25,000 off the construction process.

“Our economic plan is building more homes, faster, and making life more affordable for Canadians,” said Deputy Prime Minister and Minister of Finance, Chrystia Freeland. “The Affordable Housing and Groceries Act is an important part of our plan, and it will help to make housing more affordable and stabilize prices for Canadians from coast to coast to coast.”

The Royal Assent of Bill C-56, which was the first piece of government legislation introduced in the fall parliamentary sitting, delivers the latest measures in the government’s economic plan. Other legislation that the government has recently introduced, including the Fall Economic Statement Implementation Act, 2023, will also help to build more homes, faster, and make life more affordable for Canadians.

“The Affordable Housing and Groceries Act is going to bring down the cost of building by removing the GST from the construction of new apartments,” said Sean Fraser, Minister of Housing, Infrastructure and Communities. “This is going to help get shovels in the ground on apartment projects across the country.”

The removal of GST will apply to new purpose-built rentals built specifically for long-term rental accommodation that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.

For more on Bill C-56, visit Enhanced GST Rental Rebate to build more apartments for renters – Canada.ca