Moving on up - Proposed GST rental rebate increase

Recently, the federal government announced plans to propose an increased GST rebate for new residential rental buildings. The rebate will apply to apartment buildings, senior residences and student housing constructed for long‑term residential rental purposes. These changes apply to projects started on or after Sept. 14, 2023, but before Dec. 31, 2030, and completed by Dec. 31, 2035.  The rebate does not apply to residential developments currently under construction.

The proposed changes include an increase to the new residential rental property rebate from 36 per cent of the 5 per cent GST to 100 per cent of the 5 per cent GST. The changes also eliminate the existing GST phase‑out thresholds for qualifying purpose‑built rental housing projects. For rebate eligibility, rental buildings must have at least four self‑contained apartment units, or at least 10 units for student housing and senior residences, with 90 per cent of residential units designated for long‑term rental.

If you think you may qualify for this increased GST rebate, or have any questions or concerns, simply contact your Baker Tilly advisor.