Ottawa's GST rebate on new homes would save typical 1st-time buyer $27K: PBO
OTTAWA — The parliamentary budget officer says Ottawa's plan to slash the sales tax on housing would save an eligible first-time homebuyer an average of roughly $27,000 off the price of a newly built home.
The federal government's fiscal watchdog predicts in a new analysis that a little over 71,000 new builds will quality for GST relief over the lifetime of the program.
The proposal would see the federal portion of the sales tax eliminated on a new home worth up to $1 million if it's bought by a qualifying first-time homebuyer.
The GST rebate would be phased down as the price of the home approaches $1.5 million.
The PBO forecasts the program will cost $1.9 billion over six years, while the federal government has pegged the price tag closer to $3.9 billion.
The GST rebate, which is not yet law, was included in the Liberals' spring election platform as a way to help Canadians break into the housing market.
This report by The Canadian Press was first published June 11, 2025.
Craig Lord, The Canadian Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
3 hours ago
- CBC
Canada-U.S. trade deal hopes appear to fade after latest talks
Although U.S. President Donald Trump's Aug. 1 deadline is fast approaching, there is no sign of a breakthrough yet on a new Canada-U.S. trade deal after a week of talks in Washington, D.C. Ottawa continues to say it won't sign anything that isn't in Canada's best interest.
CTV News
6 hours ago
- CTV News
Federal health minister non-committal on signing more pharmacare deals
OTTAWA — Federal Health Minister Marjorie Michel is not committing to sign pharmacare funding deals with all provinces and territories. The first phase of the pharmacare law that was passed by the Trudeau Liberals last fall calls on Ottawa to cover the cost of contraceptives and diabetes medications for patients. The previous government signed deals with P.E.I., B.C., Manitoba and Yukon to do just that before the spring election. The Liberals promised during the election campaign to protect the pharmacare program, along with other social programs. At a press conference in New Brunswick this week, when asked why talks weren't progressing with the remaining provinces, Michel said that this is a new government in a new context. A spokesperson for the minister says the government will protect the four deals that have been signed but did not say whether the Liberals plan to sign new agreements. 'Our new government will be there to discuss with our provincial and territorial partners how we can support them for better health outcomes for Canadians,' said Emilie Gauduchon-Campbell in an email. The Canadian Health Coalition pointed out that $1.5 billion was set aside to fund the agreements in the last federal budget, and the Liberals pledged to keep the program during the election. 'I don't think anybody voted for cuts to health care, including pharmacare,' said Steven Staples, the group's national director of policy and advocacy. The NDP, which pushed for the creation of the pharmacare program through its supply-and-confidence deal with the Trudeau Liberals last year, accused the government of breaking a campaign promise. 'We call on (Prime Minister) Mark Carney immediately to get back on track and honour the law we passed last Parliament,' said NDP interim leader Don Davies in a statement. 'We call on him to finalize Pharmacare agreements with all remaining provinces and territories and allocate the funding Liberals promised so that no Canadian has to choose between life-saving medicine and putting food on the table.' Michel's comments were first reported by the Telegraph-Journal, which cited an interview with New Brunswick Premier Susan Holt, who said her government had not heard from Ottawa since the election. Holt's provincial Liberals ran in an election campaign last year on a promise to cover the cost of contraceptives. New Brunswick has not signed a pharmacare deal. Former health minister Mark Holland suggested last winter that he wouldn't have enough time to negotiate the deals before the election, which most polls at the time predicted the Conservatives would win handily. Holland and the NDP warned that the Conservatives would cut the program. 'There's no room for politics in this. It's just logic. It's the thing we must do for this country,' Holland said as he announced the first deal with Manitoba, worth $219 million, in late February. Carney's government, though, has warned that spending cuts are coming as it refocuses its energy on the economy and national defence. Premiers at the Council of the Federation meetings this week in Ontario said health care is a priority, but it got only a brief mention in their final statement on Wednesday. The premiers said they're exploring avenues to improve access to medications but did not mention pharmacare specifically. At a closing press conference, P.E.I. Premier Rob Lantz, the incoming chair of the Council of the Federation, spoke about the group's history as 'a venue to lobby for more health transfers.' Manitoba Premier Wab Kinew said the country's universal health care system is a point of national pride. 'If we want to say that we're standing up to (U.S. President) Donald Trump and we're never going to be the 51st state, let's make sure that our universal health system is strong and supports Canadians in every region of the country. And I think we have a good partner in the prime minister right now to advance that project,' Kinew said. The premiers told reporters the group did not talk about health care with Carney on Tuesday, when he joined their meetings to talk about the trade war with the U.S. Sarah Ritchie, The Canadian Press
Global News
7 hours ago
- Global News
LeBlanc ‘encouraged' after latest U.S. talks as Trump tariff deadline looms
Canada-U.S. Trade Minister Dominic LeBlanc said Thursday he's feeling 'encouraged' after meeting with U.S. Commerce Secretary Howard Lutnick and American lawmakers in Washington ahead of next week's tariff deadline. But LeBlanc also suggested that a new economic and security arrangement with the United States may not materialize in time for U.S. President Donald Trump's latest deadline of Aug. 1. 'Canadians expect us to take the time necessary to get the best deal we can in the interest of Canadian workers,' LeBlanc said outside the Dirksen Senate Office Building in Washington. 'So we are only going to be in a position to accept a deal when the prime minister decides that it is the best deal we can get in the interest of Canadian workers and the Canadian economy.' Trump has sent letters to multiple nations, including Canada, saying that if no deal is made by Aug. 1, he will impose high tariffs on imports to the United States. Story continues below advertisement While Trump's letter to Prime Minister Mark Carney threatened Canada with 35 per cent tariffs, the White House has said the levies will not be applied to imports that comply with the Canada-U.S-Mexico Agreement on trade. Canada is also being hit with Trump's tariffs on steel, aluminum and automobiles, and will be affected by copper duties that are also expected to kick in on Aug. 1. 5:23 WA state senator says Trump doesn't understand effects of trade war The Trump administration has announced only a handful of trade deal frameworks with other nations since the president first threatened his so-called 'Liberation Day' tariffs in April. Trump this week said his administration made deals with Japan and the Philippines, adding to previous agreements with Indonesia, Vietnam and the United Kingdom. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy While many details of the frameworks remain vague, all of them include some level of tariff – and it's not clear whether they would shield countries from Trump's plan to impose further sectoral duties on things like semiconductors and lumber. Story continues below advertisement LeBlanc said 'complex negotiations' are continuing between Canada and the United States and he will be returning to Washington next week. He described his meeting with Lutnick as productive and cordial. LeBlanc, who was joined in the meetings by Canadian Ambassador to the U.S. Kirsten Hillman, also had face time with Republican senators Kevin Cramer, Roger Marshall, Shelley Moore Capito, Todd Young and Tim Scott. LeBlanc said they discussed border security and defence issues and the American lawmakers shared a 'desire to see more stability and predictability in the relationship with the United States.' 'My conversations have focused on how we share so many priorities of President Trump's administration that we should be able to figure out together a deal that's in the best interest of Canadian workers, and obviously they are going to do their side of the table in terms of the American economy and American workers,' he said. 1:55 'Only the best deal for Canada': Carney on negotiating tariffs, trade with Trump Federal officials have remained tight-lipped about what Trump's team has said it wants from Canada. Story continues below advertisement After this week's trade deal frameworks were announced, Trump boasted on social media that he would only consider lowering tariff rates if countries open their markets to the United States. The president also said Japan would invest $550 billion in the U.S. at his 'direction.' Trump said Thursday that Japan 'bought it down basically,' referring to the lower tariff rate. 'I would let other countries buy it down,' he said. 2:05 'Largest trade deal in history': Trump finalizes US trade pact with Japan, cuts tariffs to 15% When Trump first threatened Canada with tariffs, he claimed it was due to the cross-border flow of deadly fentanyl. Ottawa responded with a boosted border plan and named a 'fentanyl czar.' Ottawa walked back its digital services tax last month after Trump threatened to halt all trade talks. Carney last week announced measures to stop China from dumping steel in Canada. Story continues below advertisement Hillman said those efforts help Canada in its ongoing negotiations. 'In our discussion with the American senators this week, the American administration, the measures that Canada has taken on steel in particular… are some of the strongest in the world,' she said. 'And that has been recognized and very much appreciated. So we are making some positive progress.' Alaska Sen. Lisa Murkowski joined a bipartisan group of American lawmakers in Ottawa last week. The Republican said Thursday that 'we would all like to get to a better place with our trade relationship with Canada' but suggested it's not likely to happen before Aug. 1. Canada cannot be treated 'as yet one more country that we need to reconcile tariffs on' because of shared economic and national security issues, she said. 'I wish that I could say, 'It feels good,' that this is all going to be taken care of before the first of August, but I'm not sensing that,' she said.
