Short-term rental tax changes left out of Freeland's bill to implement fiscal update measures, here's why
Deputy Prime Minister and Finance Minister Chrystia Freeland will be tabling an omnibus bill to pass measures she promised in last week's fall economic statement, framing the incoming legislation to advance "the government's economic plan."
Missing from the package are the government's promised plans to crack down on short-term rentals, while Prime Minister Justin Trudeau's promise to double the carbon tax rural rebate top-up, is included.
On Tuesday, the senior Liberal cabinet minister offered an early preview of what the bill will contain, when she tabled notice of what's known as a "ways and means motion," in the House of Commons.
This motion, spanning 527 pages, outlines all of the tax and legislative measures that the government plans to include in the bill – titled the "Fall Economic Statement Implementation Act, 2023—coming on Wednesday if MPs allow.
Among the economic policies and promises this bill will seek to implement are:
- Expanding Bill C-56's plans to modernize Canada's Competition Act and the Competition Tribunal Act in light of attention on grocery sector competition and price increases;
- Create the new Department of Housing, Infrastructure and Communities, from what currently is Infrastructure Canada;
- Extending Bill C-56 the "affordable housing and groceries" bill's plans to offer a 100 per cent rental rebate off of the GST paid on new purpose-built rental housing, to co-operative housing;
- Introducing a 15-week shareable Employment Insurance adoption benefit as well as a new paid pregnancy loss leave for federally-regulated workers;
- Implementing a suite of carbon capture and clean tech investment tax credits;
- Removing the GST/HST on psychotherapy and counselling therapy services; and
- Developing a "tobacco cost recovery framework."
The bill will also advance Trudeau's pre-fall fiscal update promise to double the rural top-up on the pollution price rebate, from 10 per cent to 20 per cent. Targeted towards Canadians in small and rural communities who face higher energy costs, this Climate Action Incentive Payment boost is to come into effect as of April 2024.
Senior government officials, speaking to Canadians on a background, not-for-attribution basis confirmed that the bill will also look to move on measures first promised in the 2023 federal budget presented in the spring, but until now hadn't been acted on.
An example of this is moving forward on implementing the "Digital Services Tax" aimed at ensuring digital companies "pay their fair share of taxes," in Canada, in absence of an international agreement.
While this measure will still require a cabinet order to see it come into effect, Freeland's intention has been to advance a domestic plan as of Jan. 1, 2024, with the window closing for a multinational agreement to come to fruition by the end of 2023.
"This ways and means motion is the next step in very clear, very direct Canadian action… We've been very clear about our intentions with Canadians. We've been very clear about our intentions with our partners around the world. And this legislation is the next step," Freeland said during a press conference unveiling the incoming legislative package.
SHORT-TERM RENTAL CHANGES LEFT OUT
One major pledge from Freeland's economic update missing from this package is legislation to implement her promised crack-down on income tax deductions related to short-term rentals such as AirBnB and Vrbo properties operating in regions with restrictions, in order to expand the long-term rental supply nationwide.
Officials confirmed Tuesday that while yes this measure will require tax law changes, those proposed tweaks regarding short-term stays are not included in this bill. Asked why, officials suggested it is typical for it to take some time to consult on any tax measures that may not be straightforward, before a bill is presented.
The officials suggested that given the plan is for these short-term rental measures to apply to the 2024 tax year, there's still time for legislation to be advanced and in place before those impacted would be filing next year's tax returns.
Despite the absence of this measure, Housing Minister Sean Fraser still used Tuesday's press conference to tout the promise and the "remarkable degree of success" other jurisdictions have had "very quickly" after advancing similar short-term rental rule changes.
"There are things we can do in the short-term to unlock supply that exists today," Fraser said. "New York is one of the leading examples globally where they had 22,000 units on the market and a little more than a month later, after they put new measures in place, 19,000 of those 22,000 actually found their way on to the market for families to rent."
CALLS FOR MPS TO PASS BILL SOON
While a bill of this size and wide-spanning scope can by definition be considered omnibus, the Liberals have consistently rejected the characterization of their budget bills as being omnibus, citing their central economic theme and focus.
This development comes one week after Freeland presented Canadians with an updated fiscal picture that included a $40 billion deficit and new pledges for fiscal restraint, while vowing to advance measures to "make life more affordable… and build an economy that works for everyone."
With less than three sitting weeks left before MPs adjourn for a month-long holiday hiatus, the pressure will be on the Liberals to pass this bill quickly so all that they've promised can start being acted on.
Speaking to the bill, Innovation, Science and Industry Minister Francois-Philippe Champagne said the Liberals will be pressing "to make sure these changes are adopted quickly."
The Conservatives, though, have already indicated they will be voting against Freeland's latest economic package, with Conservative leader Pierre Poilievre stating the day the fiscal update was tabled it could be summarized as "prices up, rent up, debt up, taxes up, and time is up. Common-sense Conservatives will vote non-confidence on this disgusting scheme."
IN DEPTH
![](https://www.ctvnews.ca/polopoly_fs/1.6922467.1718138898!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
![](https://www.ctvnews.ca/polopoly_fs/1.6850735.1713368648!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6958682.1720639670!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Canada to announce plan to reach NATO target, spend 2% of GDP on defence: sources
After facing months of pressure, senior government sources tell CTV News that Canada will unveil its plan on Thursday on how to reach its NATO commitment to spend two per cent of its GDP on defence.
His brother was found dead, his mother was arrested before this baby was found crawling by a highway
A Louisiana sheriff says a one-year-old 'miracle baby' survived two days of sometimes stormy weather before a truck driver spotted him crawling along a roadside the day after his four-year-old brother was found dead and his mother was arrested in Mississippi.
Coolers seized from Vancouver encampment during heat wave
Rangers seized two coolers from a person living in a tent in Vancouver's CRAB Park Tuesday as a heat wave scorched the city, the park board has confirmed.
Frank Stronach's granddaughter seeks company docs related to misconduct allegations
The granddaughter of billionaire businessman Frank Stronach is asking an Ontario court to order the family business to disclose any documents that might exist related to complaints of sexual misconduct against him and settlements involving complainants.
Video shows police officer taking firefighter's hose, spraying people in East Vancouver
The Vancouver Police Department is defending the actions of an officer who was recorded taking a firefighter's water hose and spraying two people in the head on Canada Day.
Actor George Clooney, a high-profile Biden supporter and fundraiser, asks president to leave race
Movie star and lifelong Democrat George Clooney added his voice to calls for Joe Biden to leave the presidential race on Wednesday, just weeks after headlining a fundraiser that brought in a record single-night haul for the president's reelection campaign.
Ellen DeGeneres is 'done' after her Netflix special
Ellen DeGeneres has reportedly said she's ready to tap out of performing. The former daytime talk show host let that be known during a recent standup show at the Luther Burbank Center for the Arts in Santa Rosa, California.
Costco to increase annual membership fee to $65 this September
Costco is increasing its annual membership fees in Canada and the U.S. this fall to $65.
Family of 3 killed in tragic collision on B.C. highway, RCMP say
A family of three was killed in a tragic head-on collision with a tractor trailer in B.C.'s Fraser Valley this week, authorities have confirmed. The deceased are two adults and an infant.
Local Spotlight
![](https://www.ctvnews.ca/polopoly_fs/1.6958241.1720624905!/httpImage/image.jpeg_gen/derivatives/landscape_800/image.jpeg)
Little free Blockbuster set up in Winnipeg
One man is bringing a blast from the past to a Winnipeg community.
'Her whole future ahead of her': Sask. photographer captures Manitoba graduate posing on iceberg
Some say a photograph is simply a memory frozen in time – and a high school graduation photo taken in Churchill, Man. takes that adage to a completely new level.
'Tears come to my eyes': Track star and family granted extension to stay in Canada after deportation order
A rising track and field star overcame a big hurdle in his dream to represent Canada at the Olympics.
B.C. buyers who backed out of home purchase ordered to pay more than $350K in damages
Would-be homebuyers who backed out of a deal to purchase a B.C. property in a hot real estate market have been ordered to pay the seller the difference between what they offered and what he was able to sell the home for when the market cooled.
Look at this photograph: Ottawa city councillor meets his rock star idols Nickelback
Ottawa city councillor Tim Tierney has waited decades for the chance to meet his rock-star idols Nickelback.
'Incredible honour': Mick Jagger dines at famous Vancouver restaurant
A rock 'n' roll legend made an appearance at a popular Vancouver restaurant over the weekend.
Escaped inmate found south of Edmonton 1 month later
A convict who escaped an Edmonton correctional service more than a month ago has been caught.
Ottawa woman, 49, wins $70 million, plans to help community
An Ottawa woman, who has survived cancer and has overcome addiction, has won $70 million with Lotto Max.
Calgarians allowed to water by hand, some pools open as city eases outdoor restrictions
Calgary is easing outdoor water restrictions as the city continues work to help its water infrastructure recover following a major feeder main break.