BC Budget 2007 - Building a Housing Legacy

February 20, 2007

Balanced Budget 2007 is dedicated to housing.

It delivers a comprehensive range of new supports for British Columbians to help address the housing challenges created by a growing economy.

Lower income taxes. New supports for the homeless. More options for seniors and those with special needs. Expanded rental assistance. Improved benefits for first-time homebuyers. Balanced Budget 2007 takes a major step towards ensuring every British Columbian has access to a safe, appropriate and affordable place to call home.

Tax Relief to Help Every Taxpayer With Their Housing Costs

10% personal income tax reduction for individuals earning up to $100,000.

 Taxable Income

B.C. tax before
2001 tax cuts 

 B.C. tax after
2007 tax cuts

Reduction
in B.C. tax 

Per cent change
in B.C. tax 

 $15,000

 $56

 $0

 $56

 -100%

 $20,000

 $823

 $256

 $567

 -69%

 $40,000

 $2,585

 $1,679

 $906

 -35%

 $60,000

 $4,950

 $3,299

 $1,651

 -33%

 $80,000

 $7,888

 $5,210

 $2,678

 -34%

  • This latest personal income tax reduction builds on the 25% tax cut introduced in 2001 and the BC Tax Reduction introduced in 2005.
  • As a result, 250,000 British Columbians now pay no provincial income tax, others have seen reductions of up to 70%, and most have seen reductions of between 30 and 35%.
  • A family of four with both parents working, earning a combined $70,000, will now save more than $1,800 a year compared to 2001.

Housing Endowment for Future Generations

  • The economy was strong in 2006, and British Columbia will finish 2006/07 with a significant surplus. It is prudent, when times are good, to put aside a portion of that surplus and create a legacy for our children.
  • Balanced Budget 2007 sets aside $250 million to establish a new Housing Endowment Fund. The fund will generate approximately $10 million a year to support innovative housing solutions.

More Supports for the Homeless

  • An additional $27 million over three years to increase the number of year-round shelter beds by almost 30% and provide related support services.
  • An additional $38 million is dedicated to housing and support services for people who are homeless or at risk of being homeless.
  • Transition houses for women and children fleeing domestic violence will receive an additional $6 million over three years.

New Supports for Home Owners

  • The First Time Home Buyers' Program is enhanced to exempt first-time buyers across British Columbia from paying the Property Transfer Tax on homes valued up to $375,000. This will save first-time buyers up to $5,500.
  • Low-income seniors will be eligible for the Home Owner Grant, regardless of their home's assessed value.

Higher Income Assistance Rates

  • The shelter allowance for people on income assistance will increase by $50 a month. British Columbia now has the highest shelter assistance rates in Canada for employable singles, couples and single-parent families.

Expanded Rental Assistance

  • The Rental Assistance Program will expand so more lower-income working families qualify for benefits. An additional 5,800 families — more than 20,000 in total — will now be eligible to receive up to $563 a month to help with their housing costs.

Upgrading our Social Housing

  • The Province will provide $45 million over four years to convert up to 750 social housing units to supportive housing, to make them more accessible for seniors and others with special housing needs.

Increased Funding for Health Care

  • Budget 2007 increases funding provided for the Ministry of Health and health authorities by $885 million with overall health funding now reaching $13.1 billion.
  • Health spending has increased by over 50% since 2000/01.

Increased Funding for Education

  • The average per pupil funding for 2007/08 is estimated at $7,910, the highest in history, an increase of 4.1% over 2006/07. Budget 2007 fully funds the negotiated settlements reached earlier this year with employees in the K-12 school system.

Action on the Environment

  • The BC Liberal government is committed to initiatives that protect the environment and support the objective of leading the world in sustainable environmental management.
  • Budget 2007 includes $103 million to support environmental initiatives, including upgrading parks, extending support for hybrid vehicles, purchasing new hydrogen buses, creating an environmental secretariat, and establishing the Green City Awards.
  • Next year's budget will build upon these improvements, and directly support the climate change plans that will be developed in the coming year.

We want to ensure all British Columbians share in the benefits of our thriving economy.  Balanced Budget 2007 will help make housing more affordable and accessible for just about everyone in our province — today and for generations to come.

More highlights from Budget 2007 are available online at www.bcbudget.gov.bc.ca.