On September 14, 2023, the Prime Minister announced that the government will introduce legislation to enhance the Goods and Services Tax (GST) Rental Rebate on new purpose-built rental housing, to incentivize construction of much-needed rental homes for Canadians.

To build more rental housing, the removal of GST will apply to new purpose-built rental housing, such as apartment buildings, student housing, and senior residences built specifically for long-term rental accommodation.

This enhancement increases the GST Rental Rebate from 36 per cent to 100 per cent and removes the existing GST Rental Rebate phase-out thresholds for purpose-built rental housing projects. The enhanced GST Rental Rebate will apply to projects that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.