Canadians are feeling the rising cost of living, particularly due to rising food and rent prices. While inflation is a global challenge – caused by the COVID-19 pandemic and Russia’s illegal and unjustifiable invasion of Ukraine – we are helping families overcome its impacts by working to put more money back into the pockets of the middle class and those working hard to join it this year.
Prime Minister Justin Trudeau announced today that the government’s first legislative measures introduced in the upcoming session of Parliament will make life more affordable for Canadians who need it most.
The measures contained in these bills would:
- Double the Goods and Services Tax Credit (GSTC) for six months, providing support to approximately 11 million individuals and families who receive the tax credit, including approximately half of Canadian families with children and more than half of Canadian seniors. Single Canadians without children would receive up to $234 more and couples with two children would receive up to $467 more this year. Seniors would receive on average $225 more.
- Offer a Canadian dental benefit to children under 12 who do not have access to dental insurance, starting this year. Direct payments totaling up to $1,300 per child over the next two years (up to $650 per year) would be made for dental care services. This is the first step in the government’s plan to provide dental coverage for families with incomes below $90,000 and will allow children under 12 to get the dental care they need while we are developing a comprehensive national dental program.
- Providing a one-time top-up to the Canada Housing Benefit to provide $500 to 1.8 million Canadian renters struggling with the cost of housing. This more than doubles our commitment in Budget 2022, reaching twice as many Canadians as originally promised. This new, one-time federal benefit will be in addition to the Canada Housing Benefit currently co-funded and delivered by provinces and territories. The federal benefit will be available to claimants with an adjusted net income of less than $35,000 for families, or less than $20,000 for individuals, who pay at least 30% of their income in rent.
These actions build on the strong action we’ve taken since 2015 to make life more affordable and build an economy that works for all Canadians. Whether it’s cutting taxes for the middle class and raising them for the top 1%, providing a Canada Child Benefit and increasing it every year to keep putting more money back into the pockets of nine out of 10 families with children, to cut regulated child care fees in half on average by the end of the year for families across the country, we are supporting the middle class and those who are working hard to be part of it.
“From helping families pay rent, to ensuring people can afford the dental care they need, and putting hundreds of dollars back in the pockets of Canadians, this series of new measures will support families who need it most, when they need it most. As we head into a new parliamentary session, we are working hard to continue delivering results for the middle class and those working hard to join it.
- This targeted support program totals more than $4.5 billion, including $3.1 billion in addition to funding previously allocated in Budget 2022.
- Doubling the Goods and Services Tax Credit for six months will provide $2.5 billion in relief to Canadians who need it most.
- The Canada Dental Benefit would provide over $900 million to support dental health, starting in 2022-23. The Canada Dental Benefit for uninsured children under 12 is the first step in the government’s plan to provide dental care to families with incomes below $90,000 who do not have access to dental insurance . The Canada Dental Benefit would provide direct payments to eligible claimants totaling up to $650 per year per child for dental care services for claimants with a family income of less than $70,000, $390 for those with a family income is between $70,000 and $79,999 and $260 for those with household income below $70,000. family income of $80,000 to $89,999. Parents or guardians of eligible children will need to apply to access payments.
- A new national dental plan is being developed, with the aim of extending dental coverage to under 18s, elderly and disabled in 2023, with full implementation for all families whose income is less than $90,000 by 2025.
- The $500 payment for tenants doubles our commitment made in Budget 2022, providing $1.2 billion in assistance to 1.8 million eligible Canadians.
- In addition to today’s announcement, the following measures will support Canadians this year:
- Improving the Canada Workers Benefit at a cost of $1.7 billion in new support for about three million low-income workers this year, a couple receiving up to $2,400 more this year, and workers singles receiving up to $1,200 more. Most recipients first received this additional support through their 2021 tax refund.
- Cut regulated child care fees on average for families in Canada in half by the end of this year.
- A 10% increase in the Old Age Security (OAS) pension for those aged 75 and over, which began in July 2022, and will provide more than $800 in new support to full-rate retirees over the course of of the first year, and will increase the number of beneficiaries by more than three million seniors.
- Provide more support for students by doubling the amount of the Canada Student Grant until July 2023 and waiving interest on Canada Student Loans until March 2023.
- Here’s how we’ll make life more affordable for Canadians this year:
- A couple in Ontario with an income of $45,000 and a child in child care could receive about $7,800 more than existing benefits this fiscal year.
- A single, recent graduate living in Alberta with an entry-level job and earning $24,000 could receive about $1,300 more in new and improved benefits.
- A disabled senior in Quebec could benefit this year from more than $2,500 more than they received last year.
- Canada has the lowest total public deficit in the G7 this year and, by far, the lowest net debt burden among these countries (32.1% of GDP compared to an average of 97.5% of GDP for the whole group).
- The International Monetary Fund and the Organization for Economic Co-operation and Development predict that the Canadian economy will experience the strongest growth in the G7 this year and next.