Federal Budget 2022 – Highlights for CCI Members
The federal budget was released last week, with the key themes of growing the economy and improving affordability for Canadian families. There are a number of initiatives that could impact condominiums and homeowners as a whole.
Highlights relevant to condominium owners and business partners include:
- A number of changes to make it easier for first time home-buyers including a new TSFA, increased tax credits, and grants to prospective home-buyers.
- New rules in residential real estate to try and address price inflation:: any person who sells a property they have held for less than 12 months would be subject to full taxation on their profits as business income, applying to residential properties sold on or after January 1, 2023. Exemptions would apply for Canadians who sell their home due to certain life circumstances, such as a death, disability, the birth of a child, a new job, or a divorce. There are also new restrictions coming on foreign ownership of residential properties.
- Accelerating housing starts: $4 billion over five years to launch a new Housing Accelerator Fund.
- New clean technology incentives, including consumer incentives for electric vehicles and business and investment incentives for renewable energy and green electricity.
- On the tax side, changes to the small business taxation that will reduce taxes for growing small business, and the Canada Recovery Dividend: a one-time 15 percent tax on taxable income of banks and life insurance providers over $1 billion in the 2021 tax year.
Our Government Advocacy Committee will be monitoring the impacts of these announcements on the condominium community in northern Alberta. Full details of the budget are available on the Government of Canada’s website.