The Affordable Housing and Groceries Act, also known as Bill C-56, makes changes to the Excise Tax Act and the Competition Act. The bill was assented to on December 15, 2023.
Part 1 focuses on the Excise Tax Act. It temporarily increases the GST New Residential Rental Property Rebate for new buildings meant for renting. This means that builders of new rental properties may get more money back from the government when they pay GST. To qualify, the construction or major renovation must begin after September 13, 2023, and before 2031, and be mostly done before 2036. These changes are considered to have started on September 14, 2023.
Part 2 deals with the Competition Act. It allows the Commissioner of Competition to start inquiries into markets or industries if they believe it would help the public. The Minister can also instruct the Commissioner to conduct an inquiry. The Commissioner must publish proposed terms of reference for public comment and get the Minister's approval for the final terms. The inquiry must be completed within a period specified by the Minister, generally not exceeding 18 months. The bill also broadens the scope of orders the Competition Tribunal can make, even if the parties involved are not competitors. It also removes some exceptions related to efficiency gains.
Additionally, the Act introduces the ability for the Competition Tribunal to prohibit directly or indirectly imposing excessive and unfair selling prices. The Act also allows the Tribunal to impose administrative monetary penalties for anti-competitive practices.
Inflation and Cost of Living
This bill aims to address the cost of living by amending the Competition Act to allow for inquiries into market competition. These inquiries could uncover practices that lead to higher prices, such as unfair selling prices. The bill also attempts to address affordable housing through amendments to the Excise Tax Act.
Taxation
Part 1 of the bill amends the Excise Tax Act to temporarily increase the GST New Residential Rental Property Rebate for new purpose-built rental housing. This change affects how GST is applied to and rebated for certain residential rental properties.