On March 28, 2023, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, tabled the 2023 federal budget.
Demers Beaulne presents its executive summary of tax measures affecting the real estate and construction sectors.
Launch new tax-free savings account for first-time home buyers
In the 2022 budget, the federal government committed to creating a tax-free savings account for first-time home buyers. This is a new registered plan that would allow potential first-time homebuyers to save $40,000 tax-free. One year later, the 2023 budget announced that financial institutions would begin offering Canadians the Tax-Free Savings Account for First-Time Home Buyers (TFSA) on April 1, 2023.
Introducing the Code of Conduct to protect Canadians with mortgages
High interest rates make paying off a mortgage more difficult than ever for some people.
That’s why the federal government, through the Financial Consumer Agency of Canada, is issuing a guideline to protect Canadians with mortgages who find themselves in exceptional circumstances. More specifically, the government is taking steps to protect Canadians and to ensure that federally regulated financial institutions provide Canadians with fair and equitable access to the relief measures appropriate to their particular circumstances. For example, the budget mentions extending the amortization period, adjusting payment schedules or authorizing lump-sum payments.
Building more affordable housing
With rising interest rates and construction costs, it’s now more expensive to build housing. The federal government is taking steps to ensure that Canada’s National Housing Strategy programs continue to provide access to new affordable homes across the country, with a focus on the most vulnerable.
Budget 2023 announces that the government intends to support the reallocation of funding from the repair component of the National Housing Co-Investment Fund to its construction component, where appropriate, to encourage the construction of new affordable homes for Canadians who need them most.
Double the deduction for tradespeople’s tools
Our economy depends on skilled tradespeople. From electricians to painters to plumbers, supporting Canada’s skilled tradespeople is essential to attracting more Canadians to the trades, and to ensuring that Canada has the skilled workforce needed to build a clean economy and double the number of new homes built in Canada by 2032.
To help tradespeople invest in the equipment they need, Budget 2023 proposes to double the maximum employment deduction for tradespeople’s tool expenses from $500 to $1,000.
This change would take effect for the 2023 tax year.
Redeveloping the Bonaventure Expressway and supporting Montreal’s transportation infrastructure
For nearly 20 years, the transformation of the Bonaventure Expressway into an urban boulevard has been part of the vision for the redevelopment and revitalization of Montreal’s coastline. The federal section of the highway is soon to be replaced, allowing the road to be modernized in line with this vision and restoring public access to the area.
- The 2023 budget proposes to pay $47.8 million over nine years, starting in 2023-2024, and $225.5 million in remaining amortization to The Jacques Cartier and Champlain Bridges Incorporated for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
- The 2023 budget also proposes to pay $576.1 million over five years, starting in 2023-2024, and $192.3 million in remaining amortization to The Jacques Cartier and Champlain Bridges Incorporated for the operation, maintenance and repair of its infrastructure in the Greater Montreal area.
Carrying out the Lac-Mégantic rail bypass project
Canadians will forever remember the 47 victims of the tragic train derailment in Lac-Mégantic, Quebec, in July 2013. Completion of the Lac-Mégantic rail bypass project remains a priority for the federal government, as the community continues to recover from the tragedy.
The government continues to take important steps to move the project forward, including working closely with the Quebec government to make the project a reality. In December 2022, the Prime Minister and Premier of Quebec committed to funding the project in the same proportions as initially announced in 2018.
We suggest you read our complete summary of the measures in the 2023-2024 federal budget.
