The federal government will crack down on short-term rentals, the Toronto Star reported.

Citing an unidentified federal official, the Star reported that Ottawa will no longer allow STR providers to claim their rental-unit expenses against income that they earn. The measures will be introduced in Tuesday’s budget update and take effect in 2024.

Some provinces and municipalities have introduced tighter restrictions on STR to boost permanent rental-housing supply amid a chronic national shortage. Federal Finance Minister Chrystia Freeland has applauded B.C.’s proposed new legislation restricting STRs.

The Globe and Mail previously reported that the feds want to limit STRs. Federal, provincial and local government officials maintain that STRs have taken thousands of long-term rental units off the market.

But Airbnb and the Conference Board of Canada maintain that STRs have minimal impact on multi-residential housing supply. Nathan Rotman, Airbnb’s Canadian leader, called for STRs to be regulated locally in an interview with Connect