The GST New Housing Rebate
The GST New Housing Rebate reduces, to some extent, the GST burden on the purchaser of a new residential property, where the house is priced less than $450,000. The maximum New Housing Rebate is $7,560.
For new houses priced $350,000 or less and possession and ownership passes to the purchaser on or after July 1 2006, the rebate is the least of:
a) 36% of GST paid or,
b) $7,560. ($350,000 x 6% x 36% = $7,560)
The New Housing Rebate is still phased out for new houses priced $350,000 to $450,000 and is Nil for new houses priced more than $450,000.
The 6% GST rate change has similarly reduced the New Rental Housing Rebate, the Cooperative Housing Rebate, and the Rebate for Owner-Built Housing Rebate.