Summary#

This federal bill changes personal income taxes, creates a temporary GST/HST new‑home rebate for first‑time buyers, repeals the federal fuel charge under the Greenhouse Gas Pollution Pricing Act, and sets a national privacy policy regime for political parties. Most tax and housing measures begin in 2025. The fuel charge repeal is staged in 2025, with some provisions in 2035. The political party privacy rules apply nationally and displace provincial privacy laws for party activities.

• Lowers the federal lowest personal income tax rate to 14.5% in 2025, then 14% in 2026+ (Part 1; ITA s.117(2)).
• Adds a temporary additional GST/HST new‑housing rebate for first‑time buyers, up to $50,000, with price caps and phase‑outs, for agreements after May 26, 2025 and before 2031 (Part 2 — ETA ss.254, 254.1, 255, 256).
• Repeals the federal fuel charge (carbon price on fuels) and its regulations (Part 3 — repeal of GGPPA Part 1 and Fuel Charge Regulations).
• Requires registered/eligible political parties to adopt and follow a privacy policy, while stating parties are not subject to provincial privacy laws for their political activities (Part 4 — new CEA ss.446.2–446.4).

What it means for you#

• Households

  • Federal tax cut on the first bracket: rate is 14.5% in 2025, then 14% from 2026 onward (Part 1). If your taxable income (after deductions/credits) reaches the top of the lowest bracket ($57,375), your annual federal tax drops by up to CAD $287 in 2025 and up to $574 in 2026+ compared to the pre‑bill 15% rate (Part 1; ITA s.117(2)).
  • No change to higher‑bracket rates or thresholds stated beyond those in the bill (Part 1; ITA s.117(2)).

• First‑time home buyers

  • New additional GST/HST new‑housing rebate (on top of existing rebate) for first‑time buyers of newly built or substantially renovated homes, co‑ops, or owner‑built homes (Part 2 — ETA ss.254(2.1), 254.1(2.1), 255(2.1), 256(2.1)).
  • Key conditions: agreement entered after May 26, 2025 and before 2031; construction starts before 2031 and completes before 2036; you are the first occupant and a “first‑time home buyer” under the 4‑year look‑back and spouse/partner test; used as your primary residence (Part 2).
  • Benefit size: up to $50,000, reduced by any regular new‑housing rebate, with full amount available at prices up to $1,000,000; phases down to zero between $1,000,000 and $1,500,000 (different but similar thresholds for HST provinces) (Part 2; ETA s.254(2.1)(f)–(g); s.254.1(2.1); NHVATS Regs ss.42.1, 44.1).
  • Only one person in a purchaser group may claim; spouses/common‑law partners cannot both claim across properties; anti‑avoidance rules block cancelling/re‑signing contracts mainly to qualify (Part 2 — ETA s.262(3); new ETA s.263.3 and related provisions).
  • Effective for qualifying transactions deemed in force May 27, 2025 (Part 2).

• Renters

  • No direct rent relief or credits in the bill. Indirect effects, if any, are not specified.

• Drivers and home energy users

  • The federal fuel charge under the Greenhouse Gas Pollution Pricing Act is repealed; repeal is staged with effective dates in 2025 and some provisions in 2035 (Part 3). This removes the federal charge component on covered fuels once the applicable repeal provisions take effect. Exact amounts per litre or unit are not stated in the bill.

• Businesses and builders

  • Builders can process the additional rebate for eligible first‑time buyers under existing rebate application channels; province‑specific thresholds/rates apply in HST provinces (Part 2; ETA ss.254.1(2.1), 256.2; NHVATS Regs ss.42.1, 44.1).
  • Entities involved in fuel distribution will see Part 1 compliance obligations under the GGPPA and Fuel Charge Regulations end as repeal sections come into force (Part 3).

• Political parties, volunteers, and voters

  • Parties must have a plain‑language privacy policy that identifies a privacy officer, contact info, types of personal information collected, examples of activities (e.g., online/cookies), and training offered to staff/volunteers; parties must certify compliance when filing with Elections Canada (Part 4 — CEA s.407(1)(c); ss.446.2–446.4).
  • Parties, for their political activities, are not required to comply with provincial/territorial privacy laws, and the Act states they cannot be compelled to give access to or correct personal information under their control (Part 4 — CEA s.446.3(1)–(2)).
  • The Chief Electoral Officer must hold at least one meeting per year on party personal information protection (Part 4 — CEA s.446.4).

Expenses#

• Estimated net cost: Data unavailable.

• Key fiscal drivers (no official fiscal note provided in the text):

  • Lower federal personal income tax rate on the first bracket reduces federal revenue starting in 2025 (Part 1). Data unavailable.
  • Additional GST/HST new‑housing rebate for first‑time buyers increases federal outlays/refunds from May 27, 2025 through 2036 completion deadlines (Part 2). Data unavailable.
  • Repeal of the federal fuel charge eliminates related federal fuel charge revenue as repeal sections take effect (Part 3). Data unavailable.
  • Administration/enforcement changes for party privacy policies may have minor administrative costs for Elections Canada and parties. Data unavailable.

• Offsets or new revenues specified in the bill: None.

Proponents' View#

• The tax rate cut gives broad, immediate relief by lowering the lowest bracket from 15% to 14.5% in 2025 and 14% in 2026+, saving up to about CAD $287 in 2025 and $574 in 2026+ per filer whose taxable income reaches the top of the first bracket ($57,375) (Part 1; ITA s.117(2)).
• The added GST/HST new‑housing rebate targets first‑time buyers and is sizable (up to $50,000), with phase‑outs between $1,000,000 and $1,500,000 (or province‑specific equivalents), which can reduce closing costs on new homes (Part 2 — ETA s.254(2.1); s.254.1(2.1); NHVATS Regs ss.42.1, 44.1).
• Clear anti‑avoidance and spouse/partner rules help ensure one household claims one first‑time buyer rebate, reducing abuse (Part 2 — ETA s.262(3); new s.263.3).
• Repealing the federal fuel charge lowers prices of covered fuels by removing a federal levy, easing household and business energy costs once repeal provisions take effect (Part 3).
• A uniform federal privacy regime for political parties sets consistent national rules, with required privacy officers, policies, and annual meetings to improve oversight and transparency (Part 4 — CEA s.407(1)(c); ss.446.2–446.4).

Opponents' View#

• The bill reduces federal revenues without identified offsets. The combined cost of the tax rate cut, the new‑housing rebate, and the loss of fuel charge revenue is not quantified here, creating fiscal risk (Part 1; Part 2; Part 3). Data unavailable.
• The first‑time buyer rebate may inflate new‑home prices within the eligible ranges, diluting benefits for buyers who would have purchased anyway; the bill does not include price‑control or supply‑expansion conditions (Part 2).
• Repealing the federal fuel charge removes a price signal intended to reduce fossil fuel use; the bill does not include replacement measures, transitional supports, or provisions for returning revenues to households previously receiving proceeds (Part 3). Effects on existing related payments are not addressed.
• The political party privacy provisions bar requiring parties to give access to or correct voter data and exclude provincial privacy laws, which may limit individual control and external oversight of party data practices (Part 4 — CEA s.446.3(1)–(2)).
• The staged coming‑into‑force dates, including some in 2035, create uncertainty about timing for parts of the fuel charge repeal (Part 3).