Canada’s rental housing providers now face a new challenge because of the October 21 election, and the campaign promise of the Liberal Party and the NDP.
The risk of an increase in the CGIR being decided in the next few months is very small. CFAA has taken steps to mitigate that risk by communicating with our key contacts in the Finance Department and the Office of the Minister responsible for housing.
The risk of an increase being included in Budget 2020 without consultation is minor (say 10%). CFAA will communicate with our key contacts and others to find out whether an increase in the CGIR is being contemplated for the budget, and present the case against such an increase.
The most likely path for a possible increase in the CGIR would be a consultation in keeping the Liberals election promise to review tax expenditures, which would include the CGIR. That could result in an increase in the CGIR at January 1, 2021 or in Budget 2021, or subsequently.
Fighting higher capital gains taxes
Now that the rental housing industry faces the risk of higher taxes on capital gains, it is more critical
than ever that CFAA be properly resourced.