The oakville beaver: Oakville MP says fall economic statement tackles issues residents care about
By David Lea
From action on housing to counselling services, Oakville’s MP says there’s plenty for local residents in fall economic statement
Oakville MP Anita Anand says there’s plenty that should interest residents in the federal government’s 2023 fall economic statement.
The economic overview and spending forecast was presented by Deputy Prime Minister Chrystia Freeland on Nov. 21.
It noted a group of private sector economists surveyed by the Department of Finance expect Canada will avoid a recession despite slowing economic growth.
The country is also expected to run a deficit of $40.1 billion in 2023-24.
Anand noted housing and affordable housing continues to be an issue in Oakville and across the country. “What we are doing is unlocking financing to build thousands of new homes faster,” she said.
“We’re also going to be cracking down on short-term rentals and making housing more affordable across the country.”
Some of the housing-related announcements in the fall economic statement include.
• $15 billion in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program. This program is intended to boost the construction of rental housing by providing low-cost financing to builders and developers.
• the removal of GST on new rental housing provided by co-operative housing corporations.
• $1 billion over three years, starting in 2025-26, for an affordable housing fund. This investment is intended to support non-profit, co-op and public housing providers to build more than 7,000 new homes by 2028.
• $309.3 million for the co-operative housing development program, which provides grants dedicated to emerging and expanding co-operative housing projects.
• the denial of income tax deductions for expenses incurred to earn short-term rental income, including interest expenses in provinces and municipalities that have prohibited short-term rentals.
• the denial of income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting or registration requirements.
• $50 million over three years, starting in 2024-25, to support municipal enforcement of restrictions on short-term rentals.
Anand said the federal government also introduced a new Canadian Mortgage Charter that details the relief Canadians can expect from their banks if they are in financial difficulty.
“This includes waiving fees and costs that would have otherwise been charged for relief measures,” said Anand.
Some of the other Canadian Mortgage Charter changes include: allowing temporary extensions of the amortization period for mortgage holders at risk; not requiring insured mortgage holders to requalify under the insured minimum qualifying rate when switching lenders at mortgage renewal; and not charging interest on interest in the event mortgage relief measures result in a temporary period of negative amortization.
Anand said the government is also cracking down on junk fees.
“We’re definitely now looking at air passenger protection regulations. Right now, if you are over five and under 14 you don’t have a guarantee of sitting with your parents on an airplane without being charged an extra fee,” she said.
“We want to make sure kids can sit with their parents on planes … Similarly we’re looking at non-sufficient funds charges by banks. They can be as high as $50 and there is no limit to how many times they can be applied. That disproportionately impacts Canadians with low-income or those who may not have access to overdraft protection.”
The Oakville MP said the government is also providing residents with some support for their mental well-being by removing the GST/HST from psychotherapy and counselling services.
Journalism across the country will also get some help from an enhancement to the Canadian journalism labour tax credit.
Effective for labour costs incurred on or after Jan. 1, 2023, at eligible news organizations, the federal government proposes to increase the yearly limit on labour costs that can be claimed per eligible employee from $55,000 to $85,000, and temporarily increase the tax credit rate from 25 per cent to 35 per cent for a period of four years.
This measure will cost an estimated $129 million over five years, starting in 2024-25, with $10 million per year ongoing. “That extended tax credit is aimed at helping newsrooms that have been forced to make staff cuts,” said Anand.
“Hopefully that will be of benefit in Oakville and across the country.”
For more information on the fall economic statement, visit budget.canada.ca/fes-eea/2023/report-rapport/FES-EEA-2023-en.pdf.
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