Enhancement of the GST Rental Rebate


As of September 14, 2023, owners of new purpose-built rental housing will benefit from a complete exemption from the Goods and Services Tax (GST).

The Prime Minister announced that the government is enhancing measures for rental housing, including not only apartment buildings, but also student residences and senior residences built for long-term rental.

Under this new measure, owners will benefit from an increase in their GST Rental Rebate going from 36% to 100% and will see the GST Rental Rebate phase-out thresholds abolished.


This new legislation came into force as soon as it was announced, on September 14, 2023.

Qualifying new residential units

To qualify for the full exemption, a residential building must meet all the following conditions. This enhancement applies to new residential units:

  1. That are already eligible for the GST Rental Rebate;
  2. That are located in buildings:
    • in which 90% of residential units are intended for long-term rental;
    • that contain at least four private apartments or ten private rooms or suites;


  1. whose construction begins between September 14, 2023, and December 31, 2030, and is completed by December 31, 2035.

The concepts of commencement and completion of construction are not currently defined and remain unclear, but we will keep you updated on any new development in this regard.

Eligible conversions

This enhancement targets buildings specifically built for long-term rental, but also includes non-residential buildings that are converted into residential rental properties. For instance, if office building owners change the use of their building from commercial to residential rental purposes, they will be able to benefit from this new legislative measure, provided all the above conditions are met.

On the other hand, buildings that are already used for rental purposes cannot benefit from this measure. This exclusion is intended to discourage renovictions.


This recent measure will, of course, become clearer over the coming months. We will be pleased to support and assist you with any questions you may have regarding this new enhancement.

We welcome the efforts made by the Prime Minister as a first step to alleviate the financial burden on developers to revive the construction industry and to help increase the supply of rental housing in Canada.