Provincial Budget 2020 – PST Rebate on New Housing a Welcomed Tool to Continued Growth
Media Release>> For Immediate Release
2020-21 PROVINCIAL BUDGET >> PST REBATE ON NEW HOUSING A WELCOMED TOOL TO CONTINUED GROWTH
Saskatoon, SK (March 18, 2020) >> The Government of Saskatchewan delivered a scaled-back version of its 2020-21 budget. This was an expenditure statement without revenue projections. Given the instability of the natural resources sector, coupled with uncertain financial markets and shock to the economy created by the international COVID-19 pandemic, we collectively find ourselves in uncharted territory. This type of budget presentation, while unusual, should be no surprise given this unprecedented instability and uncertainty.
In this presentation, the Government announced a new three-year PST rebate programme for the new housing sector (view a full Q & A document here). The new programme rebates up to 42% of the PST paid on a new home, providing some level of rebate up to a construction value of $450,000.
This programme was not an easy decision for the Government that has significant and unprecedented demands on their financial resources by every sector of the economy. We are very appreciative the Minister of Finance, Donna Harpauer, and her team at the Ministry who have been very welcoming to our professional associations over the past year and a half, listening to our concerns and allowing us to work with them on the development of a solution that would also bring value to our economy.
There is no doubt, with the Canadian economy almost shutting down due to the COVID-19, that this rebate is welcomed news for housing affordability and employment in residential construction. This is a very significant tool for the success of the housing industry.
The Regina & Region Home Builders’ Association (RRHBA) and the Saskatoon & Region Home Builders’ Association (SRHBA) support the Government of Saskatchewan’s response and its 2020-21 budget. The Government’s spending plans will allow municipal, health and other stakeholders to understand their spending allocations as we navigate these uncertain times.
The Government of Saskatchewan made it clear today that they understand that home ownership and a healthy housing continuum are key components to a healthy, growing, and successful society. And to have a healthy housing continuum, Saskatchewan needs a housing sector that can function at its intended potential and be a strong sector that provides jobs for our residents.
“We are quite pleased by the Government’s approach today, amidst the unprecedented challenges we are all experiencing”, comments Chris M. Guérette, CEO of the SRHBA. “Certified builders in this province are ready – when the time is right – to get to work and start contributing to our recovery.”
“Considering the significant headwinds on the new home market over the past 3 years” comments Stu Niebergall, President & CEO of the RRHBA, “we are very pleased this rebate will allow hard working Saskatchewan citizens, especially young families and newcomers to fulfill their dream of homeownership. At the same time providing some much-needed relief for the residential construction industry that as shed thousands of jobs in the last few of years.”
“While our certified builders have shown tremendous resiliency in challenging times, they will need assistance to answer the call to continued growth in our province,” continues Guérette, “and I have no doubt they will answer that call in full force and become an accelerator to the excellent growth plan submitted by our provincial government earlier this year.”
For more information and comments, please contact:
Saskatoon & Region Home Builders’ Association
Chris M. Guérette, CEO
Regina & Region Home Builders’ Association
Stu Niebergall, President & CEO
The Regina & Region Home Builders’ Association (RRHBA) and the Saskatoon & Region Home Builders’ Association (SRHBA) are the professional associations that represent residential construction in Saskatchewan. Together, they serve businesses involved in the housing sector and provide the only certifications available for professional home builders and renovators. They are the expert voices invested in bringing insight to public policy makers on matters that affect affordability, quality and choice of housing in our province, and work collaboratively with stakeholders and governments to get us there.