Mr. Speaker, it is always a privilege to stand in the House and to contribute to the debate today on Bill C-69, the budget implementation act for budget 2024, which is focused on ensuring fairness for every generation. It is another building block to help future generations and is based on supporting the promise that all Canadians should have a fair chance to build a good, middle-class life and to do as well as their parents, if not better.
Today, too many young Canadians feel as though the deck is stacked against them, and the reward of secure, prosperous, comfortable middle-class life remains out of reach. Budget 2024 presents our plan to fix that. We will build a Canada that works better for everyone, no matter where or when they were born, and we are going to do that by building more affordable homes. We will make life cost less, and we will grow the economy in a way that is shared by all because our country works best when our economy is growing and when more opportunities exist for every generation.
Today, I would like to talk about the housing pillar of budget 2024 and the elements of Bill C-69 that support the effort to make homes more affordable to more Canadians.
For generations, one of the fundamental, foundational promises of Canada's middle-class dream was that if one worked hard and saved money, one could afford a home. However, for today's young adults, this promise is under threat. Rising rents are making it hard to find an affordable place to call home, and rising home prices are keeping homes out of reach for many first-time buyers, especially in my home province of British Columbia, and in Richmond, B.C.
On April 12, the government released our ambitious housing plan, “solving the housing crisis: Canada's housing plan”, which is supported by new investments from the budget. Budget 2024 and Canada's housing plan lay out the government's bold strategy to unlock 3.87 million new homes by 2031, which includes a minimum of two million net new homes beyond what was already expected to be built. The plan will enable more apartments and affordable housing to be built across the country, while protecting the stock of affordable housing and protecting renters from unfair practices.
When it comes to Bill C-69, the federal government is taking action to help Canadians buy and stay in their homes while also curbing investor activity that drives up the cost and decreases the availability of housing. Homes are for Canadians to live in, not speculative assets for investors, so we would crack down on non-compliant short-term rentals. The operation of non-compliant short-term rentals is helping to keep too many homes off the market. The 2023 fall economic statement proposed tax changes to incentivize the return of non-compliant short-term rentals to the long-term market and to support the work of provinces and territories that have restricted short-term rentals.
Bill C-69 proposes those amendments to the Income Tax Act, which would deny income tax deductions for short-term rentals operated in provinces and municipalities that have prohibited such activities or where short-term rentals operators are not compliant with the applicable provincial or municipal orders. This measure would induce owners of short-term rentals to return their properties to the long-term market and would unlock more housing supply for Canadians to live in.
The extension of the foreign buyer ban on Canadian housing now is to address increasing affordability concerns in cities across the country due to foreign money coming into Canada to buy up residential real estate. The government introduced a two-year ban on the purchase of residential property by foreign investors, which went into effect on January 1, 2023, to help further curb speculative foreign investments that reduce the supply of homes for Canadians to live in.
The government announced that it intends to extend the ban on foreign buying of Canadian homes by an additional two years. As confirmed in budget 2024, Bill C-69 proposes to amend legislation to extend the restrictions on foreign investment in Canadian housing, established under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, to January 1, 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents would continue to be prohibited from purchasing residential property in Canada.
Regarding the issue of underused housing tax refinements, as part of the 2023 fall economic statement, the government proposed several changes to the underused housing tax, or the UHT. Canadians and other stakeholders were invited to share their views on these proposals, and the amendments included in Bill C-69 take into account the feedback received. These changes would do the following: eliminate the UHT filing requirement for entities that are substantially or entirely Canadian; reduce the minimum non-filing penalties from $5,000 to $1,000 for individuals, and from $10,000 to $2,000 for corporations; introduce a new employee-accommodation exemption that would be available in areas of Canada that are rural or otherwise not densely populated; and, finally, make several technical changes to ensure that UHT applies in accordance with the policy intent. These proposed amendments aim to facilitate compliance while ensuring that the tax continues to apply as intended, and that is to discourage having non-resident, non-Canadian-owned residential property sitting vacant and off the market.
When it comes to enhancing the home buyers' plan to help Canadians buy their first home while at the same time we increase supply, the federal government is also enhancing the tax-free savings plans that help young prospective buyers save for a down payment. Support to help first-time buyers save must keep pace with market prices. That is why the government launched the tax-free first home savings account in 2023. To great success, more than 750,000 Canadians have already opened an account to save for their first down payment.
That is also why, through budget 2024, we propose to enhance the home buyers' plan. To effect that enhancement, Bill C-69 proposes to amend the Income Tax Act to increase the home buyers' plan withdrawal limit from $35,000 to $60,000, enabling first-time homebuyers to use the tax benefits of an RRSP to save up to $25,000 more for their down payment or, if they are in a partnership, $50,000 and almost $120,000 toward their first down payment. The newly increased limit would be effective since the budget was tabled on April 16. Bill C-69 also proposes to temporarily extend the grace period, during which homeowners are not required to repay their home buyers' plan withdrawals to their RRSP by an additional three years.
Of the two million net new homes I mentioned earlier, we estimate that the recent policy actions taken in Canada's housing plan in budget 2024 and in fall 2023 would support a minimum of 1.2 million net new homes. Budget 2024 investments for increasing the supply of affordable homes are necessary and timely, and they are part of the investments we are making for the prosperity of every generation. We will build more homes. We will make life cost less. We will invest in our small businesses. We will grow our economy in a way that works for everyone, and I encourage all hon. members to support this bill.