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Toronto Star
5 days ago
- Business
- Toronto Star
Building Industry Leaders Issue an Open Letter to Prime Minister Carney on GST Rebate Commitments
Toronto, May 28, 2025 (GLOBE NEWSWIRE) — Greater Toronto Area, May 28, 2025 – Yesterday at 2:30PM EST, key leaders from the building and development industry issued an open letter to Prime Minister Carney regarding the urgent need for federal action on the GST rebate and Canada's housing crisis broadly. The letter calls on the federal government to move with speed to combat market uncertainty and asks that: The GST rebate thresholds are adequate to deal with high value jurisdictions like the Greater Toronto Area and the Lower Mainland of BC; The GST exemption apply to all new home purchasers, not simply first-time buyers; The government update the existing GST rebate mechanism and simply adjust the dollar thresholds rather than come up with a completely new framework; and The government commits to regularly index the GST rebate thresholds. Later that afternoon, the federal government tabled a proposal to introduce a new GST rebate for first-time home buyers. While we are pleased that the federal government is moving quickly, the measures will provide limited, if any, benefit for buyers in large urban centres such as the GTA and Lower Mainland BC. We strongly encourage the government to incorporate the recommendations in the open letter, particularly the recommendation to retain the existing GST New Housing Rebate structure and eligibility criteria without adding a first-time homebuyer restriction. ARTICLE CONTINUES BELOW The letter was signed by leaders from: BILD (Building Industry and Land Development Association), Canmore Community Housing, Canadian Home Builders' Association, Habitat For Humanity Canada, Missing Middle Initiative, Options for Homes, Polygon Homes Ltd. and Wesgroup Properties. Read the entire letter: Dear Prime Minister Carney, We want to congratulate you on your election as Prime Minister of Canada and on the appointment of your new Cabinet. We are looking forward to working with your government towards the common goal of increasing annual housing starts to 500,000 units and supporting a sustainable housing market. We write to you today to propose that the federal government immediately follow through with a revised version of the campaign promise of enhancing the existing GST new housing rebate, which was referenced as a priority in today's Speech from the Throne. An enhanced rebate would help lower the cost of ownership, increase housing supply, enable residents to live in right-sized homes, and move the nation closer to its goal of starting construction on 500,000 new homes annually. Canadians welcomed and embraced the focus on housing affordability during the election in the interest of housing availability, affordability, and job creation. Yet, housing starts for owner-oriented homes continue to fall. In 2024, Canada recorded just 132,000 such starts, the second-lowest since 2001, and down over 20% from 2021. The outlook is worsening: first-quarter 2025 starts are down over 25% year-over-year, hitting their lowest point since the Financial Crisis. Pre-construction condo sales have nearly disappeared in Greater Vancouver and Greater Toronto, indicating further declines ahead. Canada faces a cost-of-delivery crisis in new home construction. The Liberal platform rightly identified 'lowering the cost of homebuilding' as a key priority. While many cost drivers lie outside federal control, the GST is a notable exception. Applied only to new homes, the GST undermines affordability. When introduced in 1991, the federal government provided a rebate that covered over 95% of new homes for all new home buyers. But because the thresholds were never indexed to inflation, most new homes no longer qualify, especially in high-cost regions, where affordability is most strained. This impacts not only new home prices but also resale and rental markets by reducing housing options. There is an opportunity and need to ensure the GST rebate will address the affordability crisis for all buyers, not just those purchasing new homes for the first time. If an adjustment to GST exemptions applies only to first-time buyers, it excludes key groups like seniors looking to downsize, transactions that free up family-sized homes. Perversely, it could reduce the construction of new affordable supply, as potential first-time homebuyers may be reluctant to use their eligibility on a smaller unit, instead saving it up for a more expensive, family-sized home down the road. This also reduces the incentive for those who purchase pre-construction condos, which are essential for developers to move forward with projects and provide much-needed privately-owned rental homes at completion. We urge your government to redesign its proposed enhanced GST new housing rebate with four key principles in mind: speed, simplicity, supply, and sufficiency. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Speed: The rebate should be implemented immediately to counter the ongoing decline in non-rental housing starts and prevent buyers from delaying purchases. We urge you to announce an effective date, as soon as possible, with the rebate applied retroactively to that date. Simplicity: The design should align with existing business practices and avoid complex, time-consuming changes for governments and industry. Supply: New condo supply will not be created in some regions until the market absorbs the existing inventory of under-construction and complete but unsold units. Sufficiency: The rebate must be large enough to support the federal goal of 500,000 housing starts per year, with thresholds high enough to ensure no region is excluded. With speed, simplicity, supply, and sufficiency in mind, we propose the following recommendations to the federal government: Implement immediate reforms to the existing GST/New Housing Rebate. Retain the current structure and eligibility criteria, without adding a first-time homebuyer restriction. Raise the lower threshold from $350,000 to $1,000,000 and the upper threshold from $450,000 to $1,500,000. Increase the maximum rebate from 36% to 100% for homes where possession and ownership transfer on or after July 1, 2025. The rebate must apply to homes that are currently under construction and those that are complete and unsold, to ensure the next round of construction can occur as quickly as possible. Commit to further enhancements. Recognize that even these thresholds may not fully address affordability in high-cost regions or future price growth. Implement threshold increases now and launch consultations on inflation indexing and regional adjustments. Encourage provincial action. Urge provinces to adopt or expand similar rebates, including relief from sales taxes and land transfer taxes on new homes. GST relief was a central part of the Liberal platform, your post-election commitments and addressing the housing affordability crisis facing our country. Acting quickly will complement your middle-class tax cut and show your government's practical, results-driven approach to one of Canada's most urgent challenges. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW We welcome the opportunity to support your team on implementation and look forward to working together to increase housing starts and improve affordability nationwide. We would request the opportunity to meet with you at your earliest convenience to further discuss the impact of these proposals and the need to act with urgency. Sincerely, Dave Wilkes, President & CEO, Building Industry and Land Development Association Kristopher Mathieu, AT., PMP., Executive Director, Canmore Community Housing Kevin Lee, CEO, Canadian Home Builders' Association Pedro Barata, President & CEO, Habitat For Humanity Canada Dr. Mike Moffatt, Founding Director, Missing Middle Initiative Daniel Ger, CEO, Options for Homes Robert Bruno, Executive Vice President, Polygon Homes Ltd. Beau Jarvis, President & CEO, Wesgroup Properties -30- With more than 1,000 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders' Associations. For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@ (416-617-7994)
Toronto Sun
28-05-2025
- Business
- Toronto Sun
OPINION: Carney's ‘very different approach' will further erode Ottawa's finances
Prime Minister Mark Carney listens as King Charles III opens the 45th Parliament of Canada by delivering the Speech from the Throne during an official visit to Canada on May 27, 2025 in Ottawa. Photo by Chris Jackson - Pool / Getty Images This week, after five months off and one federal election, Parliament starts a new session in Ottawa. And federal finances should be a top priority. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Too much of anything can be harmful. In recent years, the size of the Canadian government and the government debt burden have grown too large, harming economic growth and living standards. When the government grows too large, it begins taking over functions and resources that are better left to the private sector. Consider this. From 2014 to 2024 , total government spending in Canada (federal, provincial and local) increased from 38.4% as a share of gross domestic product (GDP) to 44.7% — the second-fastest increase among 40 advanced countries worldwide. Consequently, the total size of government in Canada increased from 25th highest to 17th highest (out of the same 40 countries). Again, this means that government now essentially controls a significantly larger share of our economy. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. During the same 10-year period, Canada's gross government debt (federal, provincial and local) increased from 85.5% (as a share of GDP) to 110.8% — the third-fastest increase among the 40 countries. As such, Canada's debt ranking among the 40 countries increased from 14th highest to 7th highest. Why should Canadians care? A large government debt burden lands squarely on the backs of Canadians. For example, governments and the private sector compete for the limited pool of savings available for borrowing. As governments increase the amount they borrow, fewer savings are available for the private sector. All else equal, this drives up interest costs and makes it more expensive for families to take out a mortgage or businesses to attract investment. This advertisement has not loaded yet, but your article continues below. Moreover, debt accumulation today will likely mean higher taxes in the future. Indeed, a 16-year-old Canadian in 2025 will pay an estimated $29,663 over their lifetime in additional personal income taxes (that they otherwise wouldn't pay) due to ballooning federal debt. In other words, by accumulating debt today, the government is disproportionately burdening younger generations with higher taxes in the future. Of course, when talking about Canada's overall debt load, the federal government plays a big role. The Carney government says it will 'build Canada into the strongest economy in the G7' by employing a 'very different approach' to federal fiscal policy than its predecessor. Yet the Carney campaign platform promises to add to Ottawa's mountain of debt (which currently stands at a projected $2.2 trillion) by running huge annual deficits until at least 2028/29, even outspending the Trudeau government's previous plan . This is not a 'very different approach.' The Carney government plans to table its first budget in the fall. As Parliament resumes, let's hope the new prime minister shows real leadership by charting a clear path towards fiscal sustainability and stronger economic growth. Jake Fuss and Grady Munro are analysts at the Fraser Institute Read More Toronto & GTA Canada Canada Tennis Music
Canada Standard
27-05-2025
- Politics
- Canada Standard
British king visits Canada amid U.S. annexation threats
OTTAWA, May 26 (Xinhua) -- Britain's King Charles III and Queen Camilla arrived Monday for a two-day visit to Canada amid U.S. President Donald Trump's threats to make it the 51st U.S. state. Canadian Prime Minister Mark Carney said in a statement that Charles' first visit as King of Canada is a reminder of the bond between Canada and the Crown to reflect "strength, diversity, and confidence." Carney announced the royal visit in his post-election victory press conference, saying that it "underscores the sovereignty" of Canada. "The presence of Their Majesties at this pivotal moment in our history holds profound significance," said Governor General Mary Simon in a statement, "It reaffirms the enduring constitutional bond that has shaped Canada's journey into a proud and independent nation." As the highlight of his visit, Charles will deliver the Speech from the Throne in the Senate chamber on Tuesday, nearly 70 years after a Canadian sovereign first opened the country's parliament. The visit is widely understood as a support to the Canadian sovereignty, particularly against the backdrop of Trump's repeated annexation threats toward Canada on various occasions, which he said would be a "wonderful marriage". He also called the border between the two countries "artificial". When meeting Carney earlier this month, Trump said it would be best for Canada as the "51st state" of the United States with a lot of advantage, tax cut and free military. Carney jumped in, saying that Canada is "never for sale."
Canada Standard
07-05-2025
- Business
- Canada Standard
The King's speech: The world will be watching when Charles opens Canada's Parliament
Prime Minister Mark Carney has invited King Charles to embark upon a Royal Visit to Canada and open the new session of Parliament on May 27. The visit comes at a significant moment in Canadian history. Carney has just had his first meeting with Donald Trump, pushing back unequivocally against the American president's continuing calls for Canada to become the 51st state. In their Oval Office news conference, Trump once again declared his desire to erase "the artificially drawn line" separating the U.S. and Canada and to annex Canada, as Carney made clear that would never happen. Read more: Mark Carney tells Donald Trump 'Canada is not for sale' in a high-stakes Oval Office meeting At the same time, Trump has been looking to reshape the global economic order through the use of tariffs on imported goods. Even though Canadians are fighting back with consumer and travel boycotts, many are also worrying about the future due to Trump's actions. Amid this turmoil, the King's timely visit could be a powerful show of support for Canadians, whose identity has often wilted in the shadow of its powerful but formerly protective American neighbour. The presence of the King will undoubtedly generate global attention, which could provide reassurances to Canadians that they're not alone. Charles is King of Canada and the country's official head of state. This will be his 20th trip to Canada, but his first since becoming King in September 2022. In day-to-day government business, his duties are carried out by the Governor General. These include opening Parliament and delivering the Speech from the Throne, which outlines the government's agenda. The King's visit will mark the first time the sovereign has personally delivered the Speech from the Throne since Queen Elizabeth did so in 1957. She also opened a session of Canada's 30th Parliament in 1977. Canada has maintained close ties with the United Kingdom. It still uses the Westminster parliamentary system. But Canada has also worked to establish its own national identity. In 1982, Prime Minister Pierre Trudeau repatriated Canada's Constitution. This replaced the British North America Act and established Canada's full political independence, a process that began with Confederation in 1867. Royal Visits are one of the monarchy's most effective tools for promoting international relations. In Charles's recent visit to Italy, he even made a point of honouring Canada. This upcoming visit is expected to highlight Canada's identity separate from the United States. It will give Charles the opportunity to remind everyone of the Crown's place at the heart of Canadian sovereignty and our constitutional relationship with monarchy. This is an image that Charles has been eager to foster since becoming King in 2022 following the death of his mother and amid waning enthusiasm for the monarchy in some Commonwealth countries. The King cannot make political statements - at least, not without the say-so of the prime minister. After meeting with Justin Trudeau in March before he was replaced by Carney as prime minister, Charles signalled his support for Canadian sovereignty through a series of subtle but important gestures. Read more: How King Charles is sending Canada subtle signals of support amid Trump's threats He presented a ceremonial sword to the Usher of the Black Rod - one of the Canadian Senate's senior ceremonial officers. A week later, Charles planted a red maple at Buckingham Palace to commemorate the late Queen Elizabeth's support for international forestry. He even wore Canadian military insignia on his admiral's uniform during a public inspection of a British aircraft carrier. The King's visit could also reinvigorate Canada's ties to the Commonwealth. Canada has long maintained positive relations with the other Commonwealth countries through shared culture, military action and economic support. This Royal Visit could solidify the beneficial role of the Crown and of the Commonwealth for Canada as it seeks to assert its sovereignty and broaden its international economic ties in the face of American tariffs. Many in Canada and around the world will be watching and listening to the King's speech when he opens Parliament on May 27. Read more: King Charles's coronation: Can the British monarchy shed its imperial past? It is unlikely there will be any direct references to Trump's 51st state threats or to the president himself. But its symbolic significance could reaffirm Canada's place on the world stage. It may also help to quell, at least for a little while, the growing calls to reconsider the need for the British monarchy at all in modern-day Canada.
