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ARTICLE · 21 SEPTEMBER 2023

GST Removed On New Rental Buildings

Gowling WLG
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On Sept. 14, 2023, Prime Minister Justin Trudeau announced that the federal government is removing Goods and Services Tax (GST) on new purpose-built rental housing in order...

CanadaReal Estate and Construction

On Sept. 14, 2023, Prime Minister Justin Trudeau announced that the federal government is removing Goods and Services Tax (GST) on new purpose-built rental housing in order to incentivize construction of much-needed rental homes for Canadians.

The removal of GST will apply to new purpose-built rental housing, such as apartment buildings, student housing and senior residences built specifically for long-term rental accommodation.

The legislative reform is part of the federal government's response to the ever-rising cost of residential housing in Canada and the corresponding lack of available affordable housing, whether to own or rent.

The new rebate will be increased from 36 to 100 per cent, allowing for a full recovery of the five per cent federal GST (and the corresponding five per cent federal component of the HST). Importantly, the legislation will also remove the existing GST Rental Rebate phase-out thresholds for such purpose-built rental housing

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