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ARTICLE · 27 SEPTEMBER 2023

New GST Rebate For Purpose-Built Rental Property

Davies Ward Phillips & Vineberg LLP
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As an incentive to builders to create more rental housing units, the federal government has announced the effective elimination of the goods and services tax (GST)...

CanadaTax
Neal Armstrong
Neal Armstrong
Sabina Han
Sabina Han
Ariane Hunter-Meunier
Ariane Hunter-Meunier
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As an incentive to builders to create more rental housing units, the federal government has announced the effective elimination of the goods and services tax (GST) payable on newly constructed rental housing, such as apartment buildings, student housing and senior residences built specifically for long-term rental accommodation. The draft legislation (in Bill C-56) was released on September 21, 2023.

In summary, the existing new residential rental property rebate is proposed to be increased to 100% of the GST, from the current rate of no more than 36%, that otherwise would be payable by the builder on the fair market value of the newly constructed residential units described below. There no longer will be a phase-out of the federal rebate as the value of the individual units increases from C$350,000 to C$450,000.

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