How The 2024 Federal Budget Aims To Boost Housing And Target Top Earners
Deputy Prime Minister and Finance Minister Chrystia Freeland unveiled the 2024 Federal Budget on Tuesday with a focus on addressing housing affordability and generational fairness. The budget outlines over $8.5 billion in new spending over the coming years for housing supply initiatives alongside plans to raise taxes on capital gains for the highest earning Canadians.
A central part of the budget is a commitment to build 3.9 million homes by 2031 through various measures. This includes a $15 billion expansion to the Apartment Construction Loan Program and $6 billion for a new Canada Housing Infrastructure Fund. The budget also details a $1.5 billion Canada Rental Protection Fund and $400 million more for the Housing Accelerator Fund to support new construction.
Additional Measures To Support Younger Canadians
On the revenue side, the budget proposes increasing the capital gains inclusion rate, the portion subject to tax, for individuals realizing over $250,000 per year. This is projected to impact about 12% of corporations and those with an average income of $1.42 million. The government estimates this will generate $19.3 billion over five years. Freeland framed this as pursuing “tax fairness”.
The 2024 Federal Budget also included several initiatives aimed particularly at younger generations. It provides $207.6 million more for a Student Work Placement Program and extends increased student grants and interest-free loans. Housing costs will also be better accounted for in determining student financial need calculations. The budget is part of the Liberals’ goal of helping ensure a “fair chance at middle class life” for Canadians.
