Stephanie Lane
Executive Director, Legislative Governance, Department of the Environment
Opening remarks
Hello. I'm Stephanie Lane, executive director of legislative governance at Environment and Climate Change Canada.
Meeting 4 · October 1, 2025 · 16:29–18:36 (2h 7m)
45-113 witnesses · 210 interventions · 14,632 words
The House of Commons Finance Committee met to study Bill C-4, An Act respecting certain affordability measures for Canadians and another measure, which includes a personal income tax rate cut, a GST rebate for first-time homebuyers, the repeal of the federal fuel charge, and a clarification of federal jurisdiction over political parties' use of personal information. Appearing were officials from the Department of the Environment, the Department of Finance, the Canada Revenue Agency, and the Privy Council Office, as well as witnesses Kim G. C. Moody, Isabelle Demers, and Mike Moffatt.
Stefania Bartucci of Finance Canada explained that Part 1 of Bill C-4 lowers the first personal income tax rate from 15% to 14% effective July 1, 2025, resulting in a full-year rate of 14.5% for 2025 and 14% thereafter, with maximum savings of $420 per individual in 2026 and up to $840 for two-income families, benefiting nearly 22 million Canadians. Gervais Coulombe of Finance Canada detailed Part 2, which introduces a GST rebate of up to $50,000 for first-time homebuyers on new homes priced up to $1 million, phasing out linearly for homes between $1 million and $1.5 million, and applying to contracts entered into on or after May 27, 2025, as a temporary measure until 2031. Coulombe also outlined Part 3, which repeals the federal fuel charge in four phases, retroactively to April 1, 2025, with full repeal of all provisions by April 1, 2035. Cathy Hawara of the Privy Council Office described Part 4, which clarifies that federal political parties' activities involving personal information fall exclusively under the Canada Elections Act, retroactive to May 31, 2000, and adds new privacy policy requirements for parties.
Kim G. C. Moody, a fellow chartered professional accountant, testified that Bill C-4 does not live up to its title as an affordability measure, arguing that the average tax savings of $110 to $200 per year is immaterial—less than the cost of a daily coffee—and that the government's messaging that the tax cut is already in effect is misleading, as it undermines parliamentary process. He recommended more meaningful tax reform, such as eliminating the highest personal tax bracket to improve productivity and competitiveness, and criticized the GST rebate for being restricted to first-time homebuyers, which he said unnecessarily limits access for other buyers facing affordability challenges.
Isabelle Demers of the Association des professionnels de la construction et de l'habitation du Québec welcomed the GST rebate for first-time homebuyers but called for the effective date to be moved from May 27, 2025, back to March 20, 2025, the date of the original announcement, to avoid penalizing buyers who signed contracts in good faith after the announcement. She estimated that this change would cost the government $53 million but help nearly 2,000 additional households, and she also recommended relaxing mortgage stress test rules and improving access to CMHC programs to boost housing supply.
Mike Moffatt of the Missing Middle Initiative argued that the GST rebate should be expanded to all buyers of primary residences, not just first-time homebuyers, to address the broader housing crisis, noting that taxes on new homes have increased 600% in 20 years and that limiting the rebate reduces its effectiveness. He warned that falling housing starts—with preconstruction condo sales down 89% in the GTA—could cost the federal government over $3 billion annually in lost tax revenue and lead to 100,000 job losses, and he urged the committee to consider the cost of inaction alongside the fiscal cost of the rebate.
During questioning, officials confirmed that the GST rebate cannot be administered until the bill receives royal assent, and that only eight claims have been received so far, while the income tax rate cut has been implemented through updated withholding tables since July 1. The committee also heard that the Parliamentary Budget Officer estimated average savings from the tax cut at under $200 per year, which witnesses and some members argued is insufficient to meaningfully address affordability for seniors, single parents, or families facing rising costs. No procedural debate, motions, or votes were recorded during this meeting.
AI-generated summary — may contain errors; verify against the official evidence.
Stephanie Lane
Executive Director, Legislative Governance, Department of the Environment
Opening remarks
Hello. I'm Stephanie Lane, executive director of legislative governance at Environment and Climate Change Canada.
Judy Meltzer
Associate Assistant Deputy Minister, Environmental Protection Branch, Department of the Environment
Opening remarks
I'm Judy Meltzer, associate ADM of the environmental protection branch at Environment and Climate Change Canada.
Luisa Rizzo
Director General, GST/HST Rulings Directorate, Canada Revenue Agency
Opening remarks
I'm Luisa Rizzo from the GST/HST rulings directorate at the Canada Revenue Agency.
Amanda Riddell
Director, Real Property and Financial Institutions, Sales Tax Division, Department of Finance
Opening remarks
I'm Amanda Riddell, director of the real property and financial institutions section at Finance Canada.
Gervais Coulombe
Director General, Legislation, Sales Tax Division, Department of Finance
Opening remarks
Gervais Coulombe; director general; legislation, sales tax division; Department of Finance.
Nina Gormanns
Director, Excise Policy, Sales Tax Division, Department of Finance
Opening remarks
I'm Nina Gormanns, director of excise policy at the Department of Finance Canada.
Stefania Bartucci
Director, Strategic Projects, Personal Income Tax Division, Department of Finance
Opening remarks
I'm Stefania Bartucci, director of strategic projects in the personal income tax division at Finance Canada.
Lindsay Gwyer
Director General, Legislation, Tax Legislation Division, Tax Policy Branch, Department of Finance
Opening remarks
I'm Lindsay Gwyer, director general of the tax legislation division at the Department of Finance.
Cathy Hawara
Assistant Secretary to Cabinet, Democratic Institutions and Machinery of Government, Privy Council Office
Opening remarks
I'm Cathy Hawara, assistant secretary to cabinet, machinery of government and democratic institutions at the PCO.
Isabelle Brault
Director General, Legislative Policy Directorate, Legislative Policy and Regulatory Affairs Branch, Canada Revenue Agency
Opening remarks
Isabelle Brault, director general, legislative policy directorate, legislative policy and regulatory affairs branch, Canada Revenue Agency.
Kim G. C. Moody
Fellow Chartered Professional Accountant, As an Individual
Opening remarks
Thank you, Mr. Chair. Good afternoon, committee members. My name is Kim Moody. I am appreciative of the opportunity to speak before you today. I have a long history of serving the Canadian tax profession with a variety of significant leadership positions, and I continue to do that. I'm a prolific writer on taxation matters, including writing a weekly column for the Financial Post. Today I'd like to briefly comment on whether or not Bill C-4 lives up to its title, “An Act respecting certain affordability measures for Canadians and another measure”, and offer some suggestions for improvement. Before I do, all committee members and witnesses who have appeared before this committee obviously know that Bill C-4 is not yet law. That's why we're here to discuss and allow the parliamentary process to run its course. If you believe the messaging from the government, this bill is indeed law with respect to the proposed 1% tax cut for the lowest personal tax bracket. In my view, such messaging is misleading. It's only possible because of the CRA's current policy on the provisional administration of tax proposals, which I wrote about in one of my recent articles. Canadians' overall…
Isabelle Demers
Vice-President, Strategic Development, Public Affairs and Innovation, Association des professionnels de la construction et de l'habitation du Québec
Opening remarks
All right. Thank you so much, Mr. Chair. Mr. Chair, members of the Standing Committee on Finance, on behalf of our association, thank you for having us here today as part of the study of Bill C‑4. Please note that our intervention today will be limited to the portion of the bill related to the GST rebate measures. My name is Isabelle Demers. I'm vice-president of strategic development, public affairs and innovation at the Association des professionnels de la construction et de l'habitation du Québec, or APCHQ. Founded in 1961, the APCHQ represents more than 28,000 businesses in the residential construction and renovation industry. It is the largest voluntary membership association in the construction industry in Canada. First of all, the APCHQ welcomes the introduction of Bill C‑4, one of the key measures of which, announced by the Prime Minister on March 20, is the full or partial GST rebate for first-time homebuyers under $1.5 million. This measure, which the APCHQ has been proposing for a number of years, represents a concrete step towards affordability and home ownership. This measure has generated enthusiasm among many households aspiring to become homeowners. However,…
Mike Moffatt
Founding Director, Missing Middle Initiative
Opening remarks
Thank you for having me here today. I will speak to the first-time homebuyers' GST rebate in Bill C-4. While it is a step forward, it should be expanded to match the existing GST rebate and apply to all buyers of primary residences. Taxes on new homes have priced the middle class out of the market. In 2004, I bought a new home in London, Ontario, for $168,000. Back then, development charges, PST and GST totalled under $16,000 after rebates. Today, those same charges exceed $110,000 on a similar home—a 600% increase in 20 years. If we add in other fees, land transfer taxes and interest on development charges, the tax bill on a home today approaches the entire cost of the home I bought in 2004. In the GTA, that alphabet soup of taxes can top $300,000 on a new home. The golden rule is that a middle-class family shouldn't buy a home that's worth more than three times their income. For a $100,000 household, that's $300,000. When the taxes alone on the new home are that high, we've priced the middle class out of home ownership. Sales prove it. In the GTA and greater Golden Horseshoe areas, preconstruction condo sales are down 89% and ground-oriented home sales are down 70%. If…