In an effort to help British Columbians deal with the rising costs of living, the province has announced two enhanced tax measures and a cap on rent increases for 2023.
The B.C. Government is increasing the next Climate Action Tax Credit payment, boosting the BC Family Benefit and capping rent increases below inflation.
Premier John Horgan and Finance Minister Selina Robinson made the announcement on the heels of the Bank of Canada’s fifth consecutive interest rate hike Wednesday.
Horgan estimates the three initiatives combined could help a family of four save up to $1,500.
“Everyone is feeling the squeeze of global inflation, which is driving up the cost of groceries, gas, and other goods and services,” Horgan.
“Our next support measures will help bring down costs for renters, put money back into people’s pockets and offer families a cushion during challenging times.”
Climate Action Tax Credit:
In October 2022, the maximum amount for the Climate Action Tax Credit for low- and moderate-income British Columbians will be enhanced by up to an additional $164 per adult and $41 per child. The provincial government says this means a family with two children can receive up to an additional $410.
“One time enhancement to the Climate Action Tax Credit for low and moderate income families, that means when the climate action tax credit comes out in early October, they will be four times as large as they would have been without this investment,” said Horgan.
BC Family Benefit:
In January, February and March 2023, the BC Family Benefit will rise by as much as $58.33 per child, for each month. A family with two children will receive up to $350 from this top-up.
2023 Rent Cap:
Instead of allowing rent increases equivalent to inflation, government is placing a 2 per cent cap on rent increases for 2023.
The province says for a renter paying $2,000 in rent, this would save them up to $816 next year.
Murray Rankin, Attorney General and Minister Responsible for Housing says the BC Government the cap on rent increases will put money in back in the pockets of renters.
“Our government has saved families thousands of dollars by capping rent increases to inflation by eliminating the old government’s automatic 2 per cent rent increase on top of inflation,” said Rankin.
“But right now, Canada is seeing the highest levels of inflation in decades – especially when it comes to housing costs. By setting the maximum annual allowable rent increase for 2023 at 2 per cent, we’re helping renters keep more money in their pocket. We also recognize that landlords are facing the same inflationary pressure, and we are committed to ensuring that landlords can make the necessary repairs and upgrades to their rental units so they can provide housing for years to come.”
Horgan also announced the province is working with BC Hydro on an additional cost of living measure to help residents further reduce their expenses.
