Cut GST on new homes
Petitioners ask the Government of Canada to cut GST on new homes under $1.3M, end capital‑gains tax on reinvestments in new Canadian housing, and slash red tape. The government responds it enacted a GST rebate (100% to $1M, partial to $1.5M), notes capital‑gains rules are already favourable, and funds programs to cut red tape and boost supply.
Why we would sign this petition
- Reduces upfront costs for buyers: cutting GST on new homes under $1.3M could lower purchase costs, potentially saving eligible families up to $65,000.
- Encourages reinvestment and building: eliminating capital‑gains tax on reinvested proceeds aims to unlock private capital for new housing development.
- Speeds housing delivery: slashing regulatory red tape could accelerate approvals and construction, increasing supply where it is constrained.
Why we wouldn’t sign this petition
- Large fiscal cost and fairness concerns: cutting GST and exempting capital gains could reduce federal revenue and may disproportionately benefit higher‑priced purchases.
- Existing tax rules already favour capital gains: the government notes current capital‑gains and principal‑residence treatments may already provide similar incentives, so the change could duplicate benefits without boosting supply.
- Implementation and jurisdiction limits: zoning and permitting are municipal responsibilities, so federal tax changes may not resolve local bottlenecks that slow housing delivery.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
PETITION TO THE GOVERNMENT OF CANADA WHEREAS: • Over 46,000 Edmontonians currently can't afford to live in the city and are spending more than 30 per cent of their income on housing. • According to 2024 numbers, approximately 5,000 people are homeless in Edmonton. • Affordable house for residents that earn under $38,000 is increasing scarce. • Housing prices have doubled, and the dream of owning a home has never been more out of reach for young professionals. WE, THE UNDERSIGNED, Citizens of Canada, CALL UPON THE Government of Canada to: 1. Cut the GST on all new homes under $1.3M. Save families up to $65,000 and unleash new building. 2. End capital gains tax on reinvestments in new housing in Canada and unlock billions of dollars of investments in the country's homebuilding sector. 3. Slash costly and lengthy red tape that ties up new development projects for years.
Government response
Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne 1. The government is focused on lowering costs for Canadians and making homeownership a reality. On March 12, 2026, legislation to amend the Excise Tax Act to introduce a new Goods and Services Tax (GST) rebate for first-time home buyers received royal assent. The rebate provides 100 percent GST relief on new homes up to $1 million—saving first-time home buyers up to $50,000 in GST—and partial relief on new homes between $1 million and $1.5 million. The rebate generally applies to agreements of purchase and sale entered into on or after March 20, 2025. The first-time home buyers GST rebate is just one part of a broad suite of actions that the government is taking to address the housing crisis. Other significant steps include launching Build Canada Homes and introducing Bill C-26, the Improving Housing Supply Act. Currently before Parliament, Bill C-26 would provide $1.7 billion to support provinces and territories to implement measures to increase new housing supply. 2. Capital gains realized on the sale of assets, including those gains that are reinvested in new housing in Canada, are already afforded favourable tax treatment in the income tax system. Only 50 percent of a capital gain is included in income for tax purposes. In addition, capital gains are taxed on a realization basis when property is disposed rather than on an accrual basis as property values appreciate. Allowing capital gains to grow tax-free until disposition, coupled with the 50-percent inclusion rate, provides a significant advantage to taxpayers. The principal residence exemption applies to all capital gains realized from the sale of a principal residence. These tax-free capital gains can be reinvested in new housing in Canada. Response by the Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada Signed by Jennifer McKelvie, M.P. The Government of Canada thanks the petitioners for sharing their concerns about housing affordability in Canada. Housing in Canada is a shared responsibility among different levels of government, each with its own legislative responsibilities. Provinces and territories are typically responsible for identifying local priorities, planning, and development, while municipalities are generally responsible for zoning and permitting. The Government of Canada is committed to working with provinces and territories, regional governments, municipalities, and Indigenous communities to cut red tape, reduce obstacles, and increase the supply of affordable housing for Canadians. The Housing Accelerator Fund provides incentive funding to support communities in cutting red tape and implementing lasting housing initiatives to build more housing. These include actions like increasing local housing supply faster than the historical average, boosting densification, speeding up approval times, establishing inclusionary zoning bylaws, and encouraging public transit-oriented and climate-resilient community development. Launched in March 2023, and with a current total funding allocation of $4.4 billion until 2027-28, over 200 agreements have been signed with communities nationwide under the Housing Accelerator Fund. These agreements are expected to fast-track permits for at least 112,000 housing units over the life of the program and lead to the creation of an estimated 750,000 permitted homes over the course of the next decade. To date, communities across Canada have issued 160,585 residential building permits, exceeding the originally established target. The City of Edmonton is receiving $192 million in federal support through the Housing Accelerator Fund to reduce barriers to development and create vibrant, affordable, and transit-oriented neighbourhoods. At this time, Edmonton is on pace to complete all agreed-upon targets and initiatives and remains on track to achieve its overall three-year target of nearly 36,000 permitted homes. On September 14, 2025, the Government of Canada launched Build Canada Homes, a new federal agency with a mandate to scale up the supply of affordable housing across Canada. By leveraging public lands, deploying flexible financial tools, and acting as a catalyst for modern methods of construction, Build Canada Homes is driving a more productive and innovative homebuilding sector. Build Canada Homes serves as the Government of Canada’s single window for non-market housing. With an initial capitalization of $13 billion, it operates as a one-stop shop for proponents at every phase of the development process and works with key partners, including builders and developers, co-operatives, community housing organizations, Indigenous communities, industry representatives, and provinces and territories, to develop projects nationwide and get homes built faster. Build Canada Homes will also partner directly with municipalities to ensure that housing solutions are inclusive, equitable, and responsive to individual regional realities. As outlined in the Investment Policy Framework, Build Canada Homes works with municipalities and regional governments to help identify and advance priority projects by contributing land, expediting approvals, waiving fees, and streamlining permitting and construction processes to accelerate the delivery of the housing Canadians need—faster, smarter, and more affordably. To speed up the delivery of affordable housing and development projects, Build Canada Homes is leveraging surplus and underused federal lands that are suitable for housing. These include the six initial Build Canada Homes sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton that were announced in September 2025. These developments represent only the beginning of Build Canada Homes’ plan to increase the supply of affordable housing across the country. In the City of Edmonton, Build Canada Homes has prioritized two parcels in the northeast corner of the Village at Griesbach property for a Direct Build approach using modern construction methods to help accelerate affordable housing delivery. Build Canada Homes will build a maximum of 355 residential units at the Village at Griesbach with a minimum of 40% of homes below-market value that will be affordable to households with moderate and median incomes. Launched in April 2026, the new Build Communities Strong Fund is providing $51 billion over the next ten years to support public infrastructure projects and priorities that drive economic growth, improve productivity, enhance resilience, and strengthen communities. The Fund includes three funding streams: A Provincial and Territorial stream that is providing $17.2 billion to support provincial and territorial infrastructure projects and priorities in areas such as water and wastewater infrastructure, transit, roads, health care, education, climate adaptation, and community infrastructure. The Government of Canada will also leverage these funds to help reduce the impact of development charges and other barriers to construction to encourage housing development. A Direct Delivery stream that is providing $6 billion to support regionally significant projects, climate adaptation, and community infrastructure. A Community stream that is providing $27.8 billion for local roads, bridges, water systems, and community centres to ensure that municipalities can build the infrastructure that they need to grow. The Government of Canada remains committed to working with all levels of government to cut red tape and reduce obstacles to development to get more homes and infrastructure projects built faster.