B.C. announces tax credit increases, rent hike cap amid 'unprecedented inflation'

The British Columbia government will provide temporary increases to two provincial tax credits and impose a cap on rent increases in an effort to ease the pain of "unprecedented inflation," the premier announced Wednesday.

John Horgan was joined by B.C. Finance Minister Selina Robinson to announce the affordability supports, as the premier cited the COVID-19 pandemic and Russia's invasion of Ukraine as other contributors to the high cost of living in the province.

"Everyone is feeling the squeeze of global inflation, which is driving up the cost of groceries, gas, and other goods and services," Horgan said. "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."

TAX CREDITS

The province will boost the next Climate Action Tax Credit payment in October for low- and moderate-income British Columbians by up to $164 per adult and $41 per child.

The government has also renamed the B.C. Child Opportunity Benefit to the B.C. Family Benefit. Payments of the credit in January, February and March of next year will increase by $58.33 per child per month.

"People with lower incomes and people raising children are the most affected by the cost increases we're seeing around the world," Robinson said. "These measures are our next steps in helping to support those who need it most."

The province estimates the two enhancements will contribute up to $1,500 for a family of four.

The increased tax credits will be applied automatically for those whose income tax filings are up to date.

RENT HIKE CAP

British Columbia will place a two per cent cap on rent increases next year, rather than allowing increases to track with the rate of inflation.

"Our government has saved families thousands of dollars by capping rent increases to inflation by eliminating the old government’s automatic two per cent rent increase on top of inflation,” Murray Rankin, B.C.'s Attorney General and Minister Responsible for Housing, said in a statement Wednesday.

"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 two 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 hinted at more relief to come in the form of a benefit for BC Hydro customers.