The shortage of affordable housing and increased defense spending highlight Canada’s proposed federal budget for 2022-23, tabled by Finance Minister and Deputy Prime Minister Chrystia Freeland on April 7.
Acknowledging that “Canada does not have enough homes. We need more of them, fast” Freeland outlined multiple measures to build more homes through co-operative efforts with provincial and municipal governments, private and non-profit participants to “build the homes that Canadians need.”
These measures included many outlined in the mandate letters given to ministers earlier this year, such as commitment to prohibit foreign companies and non-Canadian, non-residents from acquiring non-recreational residential property for two years. Properties held for less than 12 months before resale would be subject to full taxation on profits as business income (with some exceptions for life circumstances).
A $4-billion, five-year Housing Accelerator Fund will target an increased supply of 100,000 new units of affordable housing. A new tax-free savings account would allow prospective first-time home buyers to accumulate up to $40,000, with tax-free contributions and withdrawals. Other measures would expand a rapid housing initiative, expanding the first-time home buyers credit, a new credit for construction of house expansions for senior family members, and a one-time $500 payment to those facing housing affordability challenges.
Still, Freehand noted that there was “no silver bullet which will immediately, once and forever, make every Canadian a homeowner in the neighbourhood where they want to live.”
The budget proposes funding dental care for Canadians, beginning with those under age 12 in 2022, then expanding to other groups over subsequent years, and eventually full coverage by 2025 for families with household income less than $90,000, and no “co-pays” for those under $70,000.
The dental coverage was a long-time priority of the New Democratic Party, which agreed to support the minority Liberal Government. Along with many of the budget’s defense and Ukraine supports were budget commitments not originally included in the Prime Minister’s mandate letters to ministers circulated earlier this year. Mandate letters highlight priorities for the upcoming legislative session.
While most of the housing elements of the budget were originally outlined in the mandate letters, other consumer protection priorities were not mentioned in the budget. This includes some priorities that may not require additional spending, such as implementation of the Healthy Eating Strategy or Right to Repair initiatives, or a commitment to lower lending rates.
The budget affirmed the government’s intention to establish a single non-profit external complaints body to address bank consumer complaints. However, no mention was made of the mandate letters’ commitment to establish a single point of access to a wide range of government services and benefits for seniors.