Madam Speaker, our government is relentless in its efforts to make life more affordable for Canadians. Many hard-working Canadians continue to face affordability pressures as the cost of essential goods, housing and everyday expenses remains high. This is why our actions have been focused on ensuring Canadians keep more of their hard-earned money in their pockets.
The spring economic update, “Canada Strong for All”, which our government delivered on April 28, includes the next steps toward meeting our objective of building a stronger, more resilient and more affordable country. We recently introduced Bill C-30, an act to implement certain provisions of the spring economic update tabled in Parliament on April 28. It is a key piece of legislation to help ease the sting of higher prices.
Let us begin with the rising cost of food, which is a major concern for Canadians. On June 5, more than 12 million Canadians will receive additional support through the new Canada groceries and essentials benefit. The spring economic update, via Bill C-30, is proposing additional measures to support Canadians even more as they deal with the financial squeeze of food bills. The passage of Bill C-30 would help growers supercharge domestic food production in Canada with tax changes that would allow the immediate expensing of greenhouse buildings. The measure is projected to provide $41 million of tax relief over six years.
The government is also committed to developing a national food security strategy. The strategy would make it easier for Canadians to access affordable and nutritious food and build Canada's resilience and capacity to meet domestic needs. Bill C-30 would amend the Canadian Food Inspection Agency Act and the Pest Control Products Act to include the consideration of food security and the cost of food.
Bill C-30 also promises to help address housing affordability concerns. It is clear: The high cost of housing is putting significant pressure on household budgets, especially for younger Canadians. Our government recognizes that many Canadians who have recently purchased their first home or are planning to do so could benefit from a boost to their cash flow. That is why Bill C-30 proposes extending the grace period during which homebuyers are not required to start repaying their homebuyers' plan withdrawals from their RRSPs. The proposed extension is from two years to five years. This change would deliver cash flow relief of up to $4,000 per individual per year over three years, during which time they would not be required to repay the amount into their RRSP.
There is more in Bill C-30. The legislation proposes an important change to the Canada pension plan to ensure Canadians keep more of their money in their bank accounts. The CPP is the cornerstone of Canada's retirement income system, providing stable and predictable pension income to millions of Canadians. To help address affordability pressures faced by so many households, Canada's ministers of finance unanimously agreed in April to reduce the contribution rate for the CPP. The change would lower the contribution rate in the base CPP from 9.9% to 9.5%, effectively January 1, 2027. This 40-basis points reduction to the CPP contribution rate would translate into annual savings of up to $133 for an employee earning $70,000 a year, with equivalent savings for their employer. The change would do this while ensuring the long-term sustainability of the CPP.
As members can see, our government is moving swiftly to improve affordability. We have already accomplished so much, and these are only the latest examples of how we are working hard to lift some of the barriers off Canadians.