Yesterday, the BC Government announced the details of their budget for the 2024/25 fiscal year. In the new budget, the government opted for spending over restraint with an emphasis on building housing, support for families, a clean economy, and First Nations economic reconciliation. The Honorable Katrine Conroy, Minister of Finance for British Columbia, stated the government did not want a “deficit of services”. Overall spending is expected to rise to $89 billion, a 7.4% increase in year-over-year expenditures.
Housing
Through the BC Builds initiative, the government is hoping to improve access to housing for the middle class. Premier Eby’s oft mentioned “Flipping Tax” comes into effect, which imposes a tax on the sale of any home if it is resold within two years of purchase. Exceptions apply when a home is being sold as a result of employment changes or other personal circumstances. Additionally, the threshold for paying the new home tax has risen from $500,000 to $835,000, which will help new home buyers at the lower end of the market.
Renters will benefit from a new tax credit of approximately $400 per year and a cap on rental increases.
Family Expenses
A one-year increase in the BC Family Benefit bonus of 25% will be available to 66,000 more families than the previous benefit program. A BC Electricity Affordability Credit of $100 per year and an increase in the Climate Action Tax are intended to put more money in the pockets of more citizens. Parents will see help with day care costs up to $145 per month and help with first-time expenses with IVF treatments.
Businesses will see some relief with an increase in the Employer Health Tax threshold from $500,000 to $1 million and a 4.6% savings on the Electricity Affordability Credit.
Climate and the Economy
The budget commits $325 million a year ($1.3 billion over 4 years) to fight climate change and build “a cleaner economy”. Of that, $405 million is dedicated to climate emergency preparedness and $435 million goes to the CleanBC climate plan which is dedicated to the reduction of carbon emissions by 40% by 2030. Families will be able to apply into the $40 million fund for heat pumps and other home retrofits.
First Nations Economic Participation
The First Nations Equity Financing Framework was included in the Budget in response to calls for support for access to capital for First Nations. This fund will begin with a $10 million inaugural balance and lead to the ultimate loan guarantee fund of $1 billion. Nations will be able to ask the provincial government to provide loan guarantees for projects in a broad range of sectors. The First Nations Major Projects Coalition cites the program as a significant game-changer and important step in economic reconciliation by allowing Nations to financially participate in projects like the Tu Deh-Kuh Geothermal Project.
Overall, this budget reflects the same trends we’ve seen from the BC Government over the last few years and seems purposefully designed to appeal to a broad base of voters in this election year.
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For more information and insights about what these developments mean for the political landscape in British Columbia, please reach out to our experts:
Richard Feehan – Senior Strategy Advisor
feehan@prairieskystrategy.ca
780.940.8956
Bronte Prosser – Strategy Advisor
bronte@prairieskystrategy.ca
306.270.7405
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