{"id":246264,"date":"2025-05-18T22:25:31","date_gmt":"2025-05-18T22:25:31","guid":{"rendered":"https:\/\/som2nypost.com\/accounting\/enhanced-gst-rental-rebate-rlb\/"},"modified":"2025-05-18T22:25:31","modified_gmt":"2025-05-18T22:25:31","slug":"enhanced-gst-rental-rebate-rlb","status":"publish","type":"post","link":"https:\/\/som2nypost.com\/?p=246264","title":{"rendered":"Enhanced GST Rental Rebate\u00a0 – RLB"},"content":{"rendered":"


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On September 14, 2023, Prime Minister Justin Trudeau announced plans to introduce new legislation to enhance the GST Rebate<\/a> on new rental apartments. The new legislation is intended to incentivize construction of new rental homes and improve housing affordability for Canadians.<\/span>\u00a0<\/span><\/p>\n

The enhancement increases the GST rental rebate from 36% to 100% of GST paid on the sale of a new residential rental property. It also removes the current phase-out thresholds beginning for units valued greater than $350,000 and fully eliminated when the value exceeds $450,000.<\/span>\u00a0<\/span><\/p>\n

Currently this change only applies to the 5% GST. It is currently unclear whether harmonized provinces such as Ontario may extend these rules to the provincial portion of HST.<\/span>\u00a0<\/span><\/p>\n

When does the enhanced rebate apply?<\/span><\/b>\u00a0<\/span><\/h4>\n

Although draft legislation has not yet been released, the enhanced GST Rental Rebate will apply to projects that:<\/span>\u00a0<\/span><\/p>\n

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  • Begin construction on or after September 14, 2023, and on or before December 31, 2030; and<\/span>\u00a0<\/span><\/li>\n
  • Complete construction by December 31, 2035.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

    Which units qualify for the rebate?<\/span><\/b>\u00a0<\/span><\/h4>\n

    Qualifying new residential units would be those that qualify for the existing GST Rental Rebate and are in buildings with at least:<\/span>\u00a0<\/span><\/p>\n

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    • Four private apartment units (i.e., a unit with a private kitchen, bathroom, and living areas), or at least 10 private rooms or suites (e.g., a 10-unit residence for students, seniors, or people with disabilities); and,<\/span>\u00a0<\/span><\/li>\n
    • 90% of residential units designated for long-term rental.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

      For clarity, the enhanced GST Rental Rebate will not apply to individually owned condominium units, single-unit housing, duplexes, triplexes, housing co-ops, and owned houses situated on leased land and sites in residential trailer parks. However, these units may still qualify for the existing GST Rental Rebate.<\/span>\u00a0<\/span><\/p>\n

      As the new legislation is intended to increase the housing supply, the enhanced GST Rental Rebate will not apply to substantial renovations of existing residential complexes.<\/span>\u00a0<\/span><\/p>\n

      For assistance with GST\/HST, contact us and ask to speak to a member of our HST team.<\/span>\u00a0<\/span><\/p>\n<\/p><\/div>\n