Summary#

• This bill is called the Making Life More Affordable for Canadians Act. It lowers the federal income tax rate on the lowest tax bracket, creates a temporary GST/HST rebate for first-time buyers of new homes, repeals the federal fuel charge (carbon price on fuels), and updates privacy rules for federal political parties.
• The main goal is to reduce everyday costs, support first-time home buyers, and set a single national privacy framework for political parties.

Key changes

• Lowers the federal tax rate on the lowest bracket to 14.5% in 2025 and 14% from 2026 onward (applies to income up to about $57,000; other brackets stay the same).
• Adds a temporary GST/HST rebate for first-time buyers of new homes, condos, co‑op units, and owner‑built homes. Maximum rebate is up to $50,000, with price limits and a phase‑out at higher prices.
• Repeals the federal fuel charge (the carbon price on gasoline, diesel, natural gas, propane, etc.) and related regulations, with changes starting April 1, 2025 and some parts ending later, including in 2035.
• Requires federal political parties to publish and follow a privacy policy, name a privacy officer, and certify compliance when registering; sets a single federal regime for how parties handle personal information.

What it means for you#

• Workers and taxpayers

  • You will pay a lower federal tax rate on the first part of your income starting in 2025, and a bit more in 2026. This means slightly higher take‑home pay for most people.

• First-time home buyers of new homes

  • You may qualify for an extra GST/HST new housing rebate up to $50,000 on a newly built home, condo, co‑op unit, or an owner‑built home.
  • Key rules include: you must be 18+, a Canadian citizen or permanent resident, and neither you nor your spouse/partner owned and lived in a home as your main home in the last 4 years.
  • The home must be your primary residence. You must be the first occupant after construction or major renovation.
  • Timing: purchase agreements generally must be signed between March 20, 2025 and 2030 (inclusive); construction must start before 2031 and be substantially completed before 2036; transfer/possession before 2036.
  • Amounts: full extra rebate (up to $50,000, limited by the tax paid) if the price is $1,000,000 or less (different limits apply to some cases), with a gradual phase‑out up to $1,500,000. For building‑only and co‑op cases, the phase‑out range is roughly $1,050,000 to $1,575,000.
  • In HST provinces (Ontario, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador), the phase‑out thresholds are set slightly higher to match provincial tax.
  • Only one person in a couple can claim, and you cannot claim more than once. Anti‑avoidance rules block re‑writing contracts just to qualify.

• Home builders and sellers

  • Buyers may be more able to afford new builds because of the rebate. You may need to handle rebate applications submitted through builders in some cases.

• Drivers and households using fossil fuels

  • The federal fuel charge added to gasoline, diesel, home heating fuels, and natural gas will be repealed in stages starting April 1, 2025. This should remove that federal charge from fuel bills as repeal dates take effect.

• Voters and party supporters

  • Federal political parties must have a public privacy policy in plain language, name a privacy officer, explain what data they collect and how, and describe staff/volunteer training.
  • Parties and their candidates, riding associations, staff, and volunteers must follow the party’s policy.
  • Parties are not required to follow provincial privacy laws when doing political activities, unless their own policy says so.
  • You do not gain a right to access or correct your data held by parties under this bill. Parties cannot be required to provide access or corrections unless they choose to in their policy.

Expenses#

No publicly available information.

• The tax rate cut would reduce federal income tax revenue.
• The new housing rebate would increase GST/HST refunds paid to eligible first-time buyers.
• Repealing the federal fuel charge would reduce related revenues and administration/enforcement costs.
• Election-related privacy changes could add small administrative costs for parties and for Elections Canada (annual meeting), but the bill does not state amounts.

Proponents' View#

• Cuts income taxes for most Canadians, letting people keep more of every paycheque.
• Helps first-time buyers afford new homes by reducing the GST/HST burden, with larger support for modestly priced new builds.
• Removes the federal fuel charge to lower costs at the pump and on home heating.
• Sets clear, uniform national rules for how political parties handle personal data, with public policies and a named privacy officer.
• Anti‑avoidance rules keep the housing rebate targeted and prevent gaming the system.

Opponents' View#

• Repealing the fuel charge weakens climate policy and could increase emissions; households may also lose associated carbon price rebates that offset costs.
• The tax cut and rebates reduce federal revenue and could widen the deficit or force spending cuts elsewhere.
• The housing rebate may push up prices for new homes or mainly benefit higher‑priced markets; it excludes resale homes and people who are not first‑time buyers.
• The privacy rules for parties are weaker than provincial standards: people do not get rights to access or correct their data, and parties are exempt from provincial privacy laws when campaigning.
• The rebate rules are complex, with tight timing and occupancy conditions that could confuse buyers.