The federal government is looking to implement new rules to crack down on Canadians profiting from short-term rentals like Airbnb.
According to the Toronto Star, Finance Minister Chrystia Freeland is set to lay out the new measures during Tuesday’s fall fiscal update.
The tightened rules will prevent property owners in areas that already restrict short-term rentals from claiming their rental expenses against the income they make, a senior official told the Star.
The decision comes as Canada is grappling with a severe housing-supply shortage.
According to a September report from the Canada Mortgage Housing Corporation (CMHC), 3.45 million additional homes will still be needed by 2030 in order to restore affordability levels Canada-wide.
On Tuesday, November 21st I will be presenting the 2023 Fall Economic Statement – the next step in our economic plan focused on building more homes and delivering for the middle class. pic.twitter.com/nR4QJ7ledc
— Chrystia Freeland (@cafreeland) November 9, 2023
Freeland said in a November 9 post on X that the 2023 Fall Economic Statement will focus on building more homes and “delivering for the middle class.”
It is widely anticipated that Canada’s cost of living crisis, including housing affordability, will be a significant focus of the fiscal update.
“The Fall Economic Statement will provide information on the state of the Canadian economy and update on the government’s economic plan to help create good jobs, to build more homes, and to make life more affordable,” reads a media release from the federal government.
Over the past year, there were several measures taken by the Bank of Canada (BoC) and the federal government to attempt to slow spending and address the cost of living.
In 2022, the BoC hiked its interest rate seven times. Then, in January 2023, another increase followed, bringing the key rate to 4.5%. The rate was raised again to 4.75% in June. In July, it saw another increase to 5%, and the BoC has held that rate since September.
“In Canada, there is growing evidence that past interest rate increases are dampening economic activity and relieving price pressures,” the BoC said in its October 25 update.
The federal government introduced its grocery rebate program and created an action plan to stabilize high food costs. The plan included establishing a Grocery Task Force, a Grocery Code of Conduct, and introducing targeted legislative amendments to the Competition Act, with Bill C-56.
According to Canada’s latest Consumer Price Index update, the nation’s inflation rate continues to slow, thanks to lower prices on some travel-related services, durable goods, and grocery items.
Daily Hive has contacted the offices of Freeland and Sean Fraser, the minister of Housing, Infrastructure and Communities of Canada, for further comment.