Mr. Speaker, I will be sharing my time with the member for Berthier—Maskinongé.
I am very pleased to participate in today's debate. Our government is well aware of the fact that many Canadians are struggling to make ends meet. They have a lot of bills to play, housing is expensive and it costs a lot to buy groceries to feed their families.
However, this is something that is happening around the world. We understand this reality and we are looking at all the issues. That is why we are proposing many measures to help Canadians keep more money in their pockets.
Canada's new government is focused on delivering a plan to address the cost of living challenges impacting Canadians across the country. That is what we are interested in, not cherry-picking data.
Let me give a few examples.
Very early on, the government delivered a middle-class tax cut to allow hard-working Canadians to keep more money in their pockets. Nearly 22 million Canadians are already benefiting from our middle-class tax cut. This tax cut will save two-income families up to $840 in 2026. Going forward, it is expected to deliver over $27 billion in tax savings to Canadians over the next five years. This rate reduction will benefit Canadians across the country. The bulk of the middle-class tax cut will go to those with incomes in the two lowest tax brackets, including nearly half to those in the first bracket of $57,375 and below in 2025.
With this middle-class tax cut, the lowest marginal personal income tax rate was reduced from 15% to 14% effective July 1. Now this tax cut is helping hard-working Canadians keep more of their paycheques to spend where it matters most.
Our government is also well aware that there is a housing crisis in Canada. Although we have seen improvements recently in some cities, too many Canadians, especially young people, are having a hard time finding housing that they can afford. That is why our government is implementing an ambitious new approach to increase Canada's housing supply.
For example, the government is moving forward to eliminate the goods and services tax for first-time homebuyers of new homes at or under $1 million and to reduce the GST for first-time homebuyers of new homes between $1 million and $1.5 million. We need the support of the budget to do that. We are talking about significant support, as first-time homebuyers can save up to $50,000. Altogether, it is expected that this tax cut will deliver $3.9 billion in savings to Canadians over five years. With this targeted support measure, the government is allowing more young Canadians to enter the housing market and, by doing so, realizing the dream of home ownership. Through this GST relief, we are ensuring that first-time homebuyers have lower upfront housing costs and more money in their pockets for related expenses.
In addition, there are a number of measures to increase the supply of housing. I am delighted to note that this GST relief will also have a dynamic effect on increasing supply, spurring the construction of new homes across the country.
Our commitment to helping build more homes from coast to coast to coast does not stop there. We recently launched Build Canada Homes, a brand new federal agency tasked with building affordable housing at scale. This is wonderful, and it has been too long in coming.
Build Canada Homes will quickly build affordable, prefabricated housing on federal land. The agency will also help fight homelessness by building supportive and transitional housing in collaboration with provinces, territories, municipalities, and indigenous communities. In my riding of Guelph, we have had great success in recent years in creating essential supports to combat homelessness, and we need to see much more of this across Canada. This program will help maintain very affordable community housing for low-income households.
In short, Build Canada Homes will accelerate housing construction and give private builders the certainty they need to build even more homes. With Build Canada Homes, our government is transforming public-private partnership. The program has been very well received by everyone in the sector. Our approach is to use modern construction methods while fostering the emergence of a whole new Canadian housing industry.
The government also cancelled the consumer carbon price to refocus carbon pricing on large emitters.
In Guelph, the child care support program this year saw daily child care costs reduce from $35 to $22 per day. That means thousands of dollars in savings for people who have children in child care.
With all of these measures, the government is delivering lower taxes, bringing down costs, putting money back in the pockets of Canadians and supporting them through a number of initiatives like trades retraining and investing in industries that are struggling right now, in order to make sure we keep those jobs. However, it is important to understand that to continue supporting Canadians, we need to manage Canada's fiscal finances carefully. When I was on a city council, I brought in value-for-money audits and went line by line through the budgets. I really care about this.
We on this side of the House are guided by fiscal discipline. We will spend less and invest more. We are going to balance the government's operating spending with revenues over the next three years by cutting waste, capping the public service, ending duplication and deploying technology to improve public sector productivity. The Minister of Finance and National Revenue will deliver the details of the new government's plan on November 4 by presenting budget 2025 in the House. It will be a comprehensive, effective, ambitious and prudent federal budget that will focus on growth, productivity and long-term prosperity.
I will also add an additional point with respect to housing.
As announced by the Minister of Finance and National Revenue earlier this week, the updated fall budget cycle will more closely align with construction season and provide increased certainty and predictability for developers and investors.
As you can see, our government has already invested and will continue investing to help Canadians weather challenges associated with the high cost of living and to support our industries. We have lowered taxes and are supporting new housing construction. However, we are also aware of the need to manage public funds prudently.
With budget 2025, our government will lay the groundwork for building a new industrial strategy that will transform our economy. I am a member of the industry committee, and we are looking at that right now. We have to go from an economy of reliance on specific trade partners, such as our neighbours to the south, to one that is more resilient to global shocks; the new Canadian economy will be built on a solid foundation of strong Canadian industries and bolstered by international trade partners. I believe that is exactly what our country needs now. This is what Canadians need.