Federal Government to Boost GST Credit

Good news for cash-strapped Canadians.

The Federal Government has announced a suite of affordability measures that they say will help Canadian families struggling to cope with the rising cost of living.

The new measure is the Canada Groceries and Essentials Benefit, which the government says will boost what families and individuals receive through their GST rebate over the next five years. 

The government says it is using the GST rebate, designed for Canadians with low and modest incomes, because groceries and other essentials make up a larger share of their family budgets. 

Eligible recipients will see their GST credit increase by 25 per cent for five years, beginning in July. They will also receive a one-time 50-per-cent top-up in June.

Currently, an individual without children needs an income below $56,181 for the 2024 tax year to qualify for the credit. Higher thresholds apply for couples and families.

The rebate is adjusted for inflation annually, with payments recalculated every July based on information from taxpayers’ previous year’s tax return.

A family of four stands to receive up to $1,890 this year, and about $1,400 a year for the following four years.