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House Hansard - 333

44th Parl. 1st Sess.
June 17, 2024 11:00AM
Context: House Hansard - 333 - Jun/17/24
Ms. Julie Dzerowicz (Davenport, Lib.)
  • Jun/17/24 1:48:48 p.m.
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Madam Speaker, is a real pleasure for me to stand here on behalf of my constituents in the riding of Davenport to speak to Bill C-69, the budget implementation act. It is legislation that would deliver on key measures from budget 2024, a budget that would advance our government's plan to build more homes faster, make life cost less and grow the economy in a way that helps generations get ahead. Budget 2024 is a plan to build a Canada where people of all generations have a fair chance to build a good middle-class life, a Canada where Canadians, especially young Canadians, can get ahead, where their work pays off and where there are homes that they can afford. Fairness matters. Budget 2024 matters. Bill C-69 matters. The bill we are studying allows us to implement several elements of the last budget, as well as policies that the government announced in recent months. I am thinking in particular of the housing sector, because giving a fair chance to the next generation begins with housing. One of the key elements of the plan is that it would improve the homebuyers' plan. This is one of the programs that can help Canadians buy their first home. It allows people to withdraw money tax-free from their RRSP to make a down payment for their first house. Homebuyers then pay themselves back over the years by putting the money back into their RRSPs. The program has been in place for over 30 years, and it has enabled thousands of Canadians to become homeowners. I am one of them; I used the program to buy my own home, and I am delighted that we are expanding the program. Across the country, especially in major cities, home prices have gone up steeply. With rising prices, the amount needed for a down payment is now much greater. The housing market facing today's young families is different from what it was when the homebuyers' plan was created, a time when many of today's young buyers had not yet been born. We still need to help first-time buyers save, but the support must keep pace with market prices. Currently, a person can withdraw $35,000 from an RRSP to use in the homebuyers' plan. As announced in budget 2024, we have proposed to increase the limit to $60,000 per person. For couples, if both spouses meet the eligibility requirements of the home buyers' plan, the maximum withdrawal limit will go from $60,000 to $120,000. This will allow more Canadians to buy the first home of their dreams. In addition, we are proposing to temporarily extend the grace period during which homebuyers are not required to repay their home buyers' plan withdrawals, from two years to five years. This extension would apply to those who made a first withdrawal between 2022 and 2025 inclusive. In reality, whoever buys a house in 2024 would not have to start paying it back until 2029. In the medium and long term, the building of new housing will drop real estate prices in Canada. This is why in April's budget we presented a plan to make 3.87 million new homes available by 2031. We must also act in the short term. That is what improvements to the home buyers' plan will do: help Canadians buy a home and enjoy a middle-class quality of life. Liberals want to help Canadians put a roof over their head. Building more housing is one way. Helping Canadians buy their first home is another. We also need to ensure that homes are for Canadians to live in, not to be used as speculative assets for investors. Platforms such as Airbnb and and Vrbo are keeping tens of thousands of homes off the market, homes that Canadians cannot buy or rent on a long-term basis. We need to crack down on short-term rentals that do not comply with provincial and municipal restrictions. In last year's fall economic statement, we announced that we would introduce a measure to support provincial and municipal efforts in this area. Bill C-69 proposes legislation to do just that. Under the proposed legislation, tax deductions would no longer be available in computing income from a short-term rental if the property is located in a province or municipality that has rules that prohibit or restrict the operation of short-term rentals and the property does not comply with those rules. That income would be subject to tax without an offsetting deduction. By ending these tax deductions, the government is eliminating a financial incentive to non-compliant short-term rental properties. The changes will be retroactive to January 1, 2024. We are also proposing adding an incentive for short-term rental property owners who revert their properties to the long-term rental market. This too would make more homes available for Canadians. Another way to help Canadians find a place to live is to limit the number of homes that are left empty and often kept only as a passive asset. To counter this practice, an annual 1% tax is applied on the ownership of vacant or underused housing in Canada; this has been in place since 2022. The tax generally applies to foreign owners. However, Canadians who own their residential property indirectly, like via a corporation, partnership or trust, have been required to file an annual return even if they did not have to pay the tax. Bill C-69 proposes changes first announced last fall to facilitate the application of the law while ensuring that the tax would be applied as intended. The change would make it possible for more Canadian owners to be excluded from application of the law, particularly those who own their property through entities that are substantially or entirely Canadian. They would no longer have to file an annual return on underused housing or pay the tax. We also propose to implement a new exception for houses that serve as employee lodging in rural areas with around 30,000 residents. We are proposing these changes in response to constructive suggestions sent to us by Canadians. Finally, Bill C-69 would extend by two years the existing ban on foreign buyers of Canadian housing, something we promised we would do in January. The ban was set to expire January 1 of 2025. Bill C-69 would extend it to 2027. That means even more homes on the market for Canadians and less upward pressure on the price. Every exception in place will remain in effect, including those for non-Canadians who will be settling in Canada to build a new life. Bill C-69 would help to make housing more affordable for every generation. For years and years in this country, if one found a good job, worked hard and saved money, they could afford a home. For today's young adults, that is under threat. Bill C‑69, like budget 2024, seeks to ensure that the dream of joining the middle class remains accessible to everyone and that Canadians, including millennials and those who are part of generation Z, have the means to buy a home.
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