Finance Minister Chrystia Freeland presented the fall economic statement on Tuesday afternoon, along with some “targeted” measures for the “middle class” at “a time when certain prices remain high.” Highlights.
New expenses
The fall economic statement projects net new spending of $13.2 billion over six years.
Short-term landlords in the sights
No more tax deductions for expenses — mortgage interest, cable and Internet bills, property insurance, condominium fees, property taxes and capital cost allowance — made by operators of short-term rental accommodation in the provinces and municipalities where this type of rental is prohibited.
Owners who have not “duly registered” their unit intended for short-term rental with the authorities will also have to do without tax deductions.
Ottawa is convinced that this turn of the screw “will strongly encourage operators of housing used for non-compliant short-term rentals to return these properties to the long-term housing market”.
The government is also planning $50 million from 2024-2025 to 2027-2028 to “help” municipalities enforce restrictions on short-term rentals… and “promote a return to the long-term housing market.” term of short-term rentals”.
Even more accommodation
The Trudeau government is adding $15 billion to the Apartment Construction Loan Program, which will support builders to build more than 30,000 new homes by 2032; and $1 billion in the Affordable Housing Fund, which will help nonprofit, co-op and public housing providers build more than 7,000 units by 2028.
The federal government is eliminating the goods and services tax (GST) from new housing cooperative projects built specifically for long-term rental, in addition to investing $309.3 million in the housing cooperative development program .
The Canadian Mortgage Charter
The Canadian government outlines in broad strokes, in a “new” mortgage charter, its expectations with regard to financial institutions, such as that of “collaborating” with their clients experiencing financial difficulties by offering them “tailored relief” and “reasonable payments”.
Canadians can expect financial institutions to:
- allow temporary extensions of the amortization period for subprime mortgage holders;
- waive fees and costs that would otherwise have been charged for the relief measures;
- do not require insured mortgage holders to re-establish their eligibility under the minimum insured eligibility rate when they change lenders at the time of mortgage renewal;
- communicate with homeowners between four and six months before their mortgage renewal to inform them of their renewal options;
- give at-risk homeowners the option to make lump sum payments to avoid negative depreciation or sell their primary residence without prepayment penalties;
- do not charge interest on interest in the event that mortgage relief measures result in a temporary period of negative amortization.
The Minister of Finance is convinced that the reminder of “these measures will help [a] “More people will be able to overcome the temporary financial stress caused by rising interest rates and will be able to keep their homes.”
Eliminate the GST on therapy services
Finance Minister Chrystia Freeland will eliminate the Goods and Services Tax (GST) on professional services rendered by psychotherapists and counseling therapists. “To ensure that Canadians can receive the help they need, the federal government is taking the necessary measures,” the ministry said.
A new employment insurance benefit for adoption
The economic and financial update provides new benefits for adoptive parents. New parents are now entitled to 15 weeks of maternity benefit, which can be shared. Adoptive parents were previously entitled to employment insurance parental benefits, but not to 15 weeks of maternity benefits. The measure would cost the government approximately $48.1 million over six years starting in 2023-2024 — and $12.6 million per year thereafter. “This benefit is expected to give approximately 1,700 Canadian families more time and flexibility each year when welcoming a new child,” we can read. Surrogate parents will also be eligible for this benefit.
13 years and under with parents on plane
Ottawa wants to force airlines to seat all children aged 13 and under next to the adult accompanying them, at no additional cost. He is prepared to amend the Air Passenger Protection Regulations accordingly.
Right to repair
The federal government will also amend the Competition Act to once and for all prevent manufacturers from “anti-competitively” refusing to “provide the means to repair” devices of all kinds such as household appliances, garden tools or electronic products. .
“Throwing away these valuable goods wastes money and creates more unnecessary waste for landfills” … and “people across the country are frustrated,” we read in the fall economic statement.
More competition
The government will work to strengthen the Competition Bureau so that it can “crack down on abuses by large companies in a dominant position, including when they aim to prevent competitors from entering the market, notably through setting unreasonably low prices,” promises Chrystia Freeland.
Recession avoided
Canada will experience the strongest economic growth in the G7 next year, maintains Justin Trudeau’s team, pointing to forecasts from the International Monetary Fund (IMF).
“Inflation is falling and wages are rising. And private sector economists now predict that Canada will avoid the post-pandemic recession that many people predicted,” said Minister Freeland.