Madam Speaker, it is true that we are discussing Bill C-4, which would repeal the consumer carbon tax. I am also referencing a middle-class tax cut that has benefits for Quebec, which is the subject of today's opposition day motion, and that middle-class tax cut would have a positive effect for Quebecers all across the province of Quebec.
We would be able to deliver these tax savings to Canadians on a priority basis with the Canada Revenue Agency updating its source deduction tables for the July to December 2025 period so that employers and pay administrators are able to reduce tax withholdings as of July 1. This means individuals with employment income and other income subject to source deductions could begin to have tax withheld at the lower 14% rate as soon as Canada Day.
However, this is not the only way Bill C-4 would bring savings to Canadians all across our provinces and territories. It would also provide for the elimination of the GST for first-time homebuyers on new homes valued up to $1 million, saving them up to $50,000. It would do so while also lowering the GST for first-time homebuyers on new homes valued between $1 million and $1.5 million. In short, the rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. For example, under this linear phase-out, a new home valued at $1.25 million would be eligible for a rebate of 50% of the maximum first-time homebuyer's GST rebate of $50,000, which still means a savings of up to $25,000, and that is significant.
With the making life more affordable for Canadians act, we would be providing a significant increase to the already substantial federal tax support available to first-time homebuyers through programs such as the first home savings account, which allows people to save tax-free for their first home purchase, the RRSP homebuyers' plan and the first-time homebuyers tax credit.
We all know that a home is more than just a roof over one's head. It is a place to build a family. It is a place to build equity towards priorities, such as retirement. It is the single biggest asset that most families own, and it is the financial security for many families. As such, it is the largest, most important purchase most people will ever make in their lifetimes. By helping people finance that purchase, we are helping more young people and more families achieve one of their most important goals in life.
At the same time, as I made clear at the outset, Bill C-4 would permanently remove the federal fuel charge from Canadian law. With the removal of the federal fuel charge, effective April 1, 2025, eligible Canadians did receive a final Canada carbon rebate payment, starting April 22. Our government decided to provide this final Canada carbon rebate payment to eligible households, but, and this is important, in provinces where the federal fuel charge applied, which does not include Quebec or British Columbia, by the way, it was especially important to us to ensure that families, especially low-income families that had been counting on those rebate checks, would be able to plan their family budgets on the assumption that they would be getting the rebate payment.
The federal fuel charge only applied in provinces that did not have their own systems in place to put a consumer price on pollution, and the majority of proceeds from the federal fuel charge were returned to households in those provinces via the Canada carbon rebate. As we know, Quebec does not have such a system in place. It opted out when it had the chance, and therefore did not contribute federal fuel charges to the federal government.
The Government of Canada continues to believe that a price on pollution is key to meeting our emissions reduction targets, which is specifically why we have kept the large emitter output pricing system in place. In fact, a price on pollution for large emitters will continue to be a pillar of Canada's plan to build a strong economy and a greener future.
Canada's emissions reduction plan contains a comprehensive suite of mitigation measures, strategies and investments, and that includes a price on pollution for large industrial emitters. With the elimination of the consumer fuel charge, we are able to refocus federal carbon pollution pricing standards on ensuring that carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry.
In doing so, we will ensure that we have a system that is fair and effective, and competitive internationally, because of course we know that many of our products are going to be subject to carbon border adjustment mechanisms and that those will essentially penalize us if we do not have an industrial system in place for pricing carbon.
At the same time, we will continue to move forward with measures, such as our middle class tax cut, which will save all hard-working Canadian families hundreds of dollars a year, regardless of where they live. These are measures we have put in place in short order in this new session of Parliament after coming back and receiving a mandate from the people. I know the Conservative slogan was to bring it home, but there is only one party that brought it home, and that was the Liberal Party of Canada.