Hon. Rodger Cuzner: Honourable senators, I rise today to speak on Bill C-4, the government’s bill entitled “Making Life More Affordable for Canadians Act.”
While this bill has been with us for quite some time, I do believe it is an important piece of legislation that will deliver some much-needed relief for many Canadians. As you know, Bill C-4 will first legislate the delivery of the government’s middle-class tax cut, which is targeted at providing tax relief for nearly 22 million Canadians and saving two-income families up to $840 a year.
The bill will also provide for the elimination of the goods and services tax, or GST, for first-time homebuyers on new homes valued up to $1 million, which would save them up to $50,000 on that purchase. It would also lower the GST for first-time homebuyers on new homes valued between $1 million and $1.5 million. On top of that, Bill C-4 would legislate the removal of the consumer carbon price, following its cancellation, effective as of April 1, 2025.
The government is carrying out its commitment to deliver a middle-class tax cut to nearly 22 million Canadians. This is all money that Canadians will then be able to spend where it matters most for them. The government reduced the federal personal income tax rate from 15% to 14% for the lowest bracket, effective July 1, 2025. In 2026, this is the tax rate that will be applied on up to $58,523 of taxable income. This means that virtually anyone who pays federal income tax will benefit from this. Nearly half of the total value of the tax relief is going to those in the lowest bracket.
It is important to note that the Canada Revenue Agency has already updated its source deduction tables. They did this to ensure that employers and pay administrators were able to reduce tax withholdings as of July 1, 2025. This means that Canadians have already begun benefiting from this lower tax rate. This middle-class tax cut is expected to deliver more than $27 billion in tax savings to Canadians over five years, starting in 2025-26, and it is only fair to say that it represents significant support for Canadians facing broad challenges of affordability, especially during these uncertain financial times.
Colleagues, Bill C-4 also brings forward an important measure to make housing more affordable in this country. As some of you may have heard, Desjardins’ economic studies published a report last year concluding that:
Over the past quarter century, the average selling price of a home in Canada has ballooned by more than four times, while the average household disposable income has only slightly more than doubled. Benchmark home prices now consistently exceed what the average household can afford in several provinces.
This is definitely worrisome, and I am of the view that something has to be done to address this housing access issue. The government has already rolled out a number of measures to make housing more affordable.
For example, the government has, in recent years, implemented a series of measures aimed at both increasing the supply of housing and also helping Canadians make that first down payment on a home. Now, Bill C-4 would complement these measures by eliminating the GST for first-time homebuyers on purchases of new homes valued up to $1 million. This new first-time homebuyers’ GST rebate would mean upfront savings of up to $50,000 on the purchase of their first newly built home. Upon receiving Royal Assent, the rebate would also lower the GST on new homes between $1 million and $1.5 million for first‑time homebuyers. In short, the rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million.
Under this linear phase-out, a new home valued at $1.25 million would be eligible for a rebate of 50% of the maximum first-time homebuyers’ GST rebate, which still means savings of $25,000.
The Parliamentary Budget Officer concluded, based on support parameters, that the new first-time homebuyers’ GST rebate included in the legislation would provide an average subsidy of around $27,000 to first-time homebuyers on their purchase of a new home. That is very significant, so by supporting Bill C-4, we would allow the government to lower the upfront cost of buying a new home for young Canadians and spur construction of new homes across this country. By doing so, we would also be helping more young people and families achieve their dream of home ownership and begin investing in their futures, their families, their peace, their comfort and their retirement.
Colleagues, one of the first things Prime Minister Carney did upon assuming his responsibilities last year was to cease the application of the federal consumer fuel charge, effective April 1, 2025. However, it is important to understand that this was effectively accomplished through government regulations. Bill C-4 would now take the next step beyond the regulatory ceasing of the fuel charge by completely removing the federal consumer carbon price from Canadian law. As a result, the fuel charge would be permanently repealed. That being said, the government said this doesn’t change anything about its commitment to fight climate change.
For example, the government has been clear that a price on pollution for large emitters would continue to be a key component of its plan to build a strong economy and a greener future. Industrial carbon pricing is one of the most important greenhouse gas emission reduction policies in the government’s plan to meet Canada’s 2030 greenhouse gas emissions reduction target.
Carbon pricing systems for industry are also designed to keep costs low to protect against competitiveness risks while driving investment in the technologies that will shape the clean economies of the future and create good Canadian jobs.
As many of you know — those who have been following the bill — it also includes some technical provisions to clarify Parliament’s long-established intent that the activities of federal political parties relating to personal information fall exclusively under federal jurisdiction and the Canada Elections Act. This provision would clarify that federal political parties cannot be required to comply with provincial personal information protection laws in keeping with Parliament’s intent that the Canada Elections Act provides for a national, uniform, exclusive and complete personal information protection regime for these parties across Canada. This has been the case since May 31, 2000, which is when the Canada Elections Act was repealed and replaced through a major modernization.
The bill also proposes additional requirements for a federal political party’s personal information policy going forward, including that it be available in both official languages; be written in plain language; state the types of personal information it retains, uses, discloses and disposes of; and explain how the party carries out its activities in relation to personal information using illustrative examples. Eligible and registered federal political parties and persons acting on their behalf would need to ensure that they comply with their personal information protection policies.
While Parliament’s intent on these matters is long established, the explicit inclusion of these measures in Bill C-4 ensures greater clarity of this intent and timely implementation. Ensuring clarity in Canada’s laws and legislation is an important priority for any government, and it’s yet another benefit that would flow from Bill C-4.
In conclusion, colleagues, Bill C-4 is an important piece of legislation that would allow the government to implement, among other things, its middle-class tax cut for hard-working Canadians, saving them hundreds of dollars a year. Bill C-4 would also make the first-time home buyers’ GST rebate a reality. This measure would save eligible first-time homebuyers up to $50,000 on their purchase of a new home valued at up to $1 million and allow savings to extend all the way up to new homes valued at up to $1.5 million. Finally, Bill C-4 would permanently legislate the removal of the federal consumer fuel charge. This would allow the government to refocus and reinforce its carbon pollution reduction efforts in a way that is fair to Canadians and supportive of clean growth.
Taken together, these measures would deliver help to make life more affordable for Canadians during these uncertain times. As you know, the global landscape is rapidly changing, leaving economies, businesses and workers under a cloud of uncertainty. As Canadians continue to feel the impact of these ongoing challenges, including the uncertainties brought about by developments on the trade and tariff front, I believe that the time is right to deliver some tax relief.
As a result, I would invite all of you, esteemed colleagues, to support the passage of Bill C-4 so that the government can deliver this support to Canadians in a timely manner.
Thank you. Meegwetch.