Carney’s new GST rebate receives royal assent, promising top-up this spring

More than 12 million families in Canada will be getting a little extra money through their GST rebate this year to help with buying groceries.

Federal legislation was fast-tracked through parliament and received royal assent.

The law increases the rebate by 25 per cent for the next five years and offers a one-time top-off for low-income Canadians; the amount depending on their living arrangement.

One economist says many people in our area will be eligible.

“Here in the local Hamilton area we are going to see an additional 2,000 people eligible for the tax credit, and that’s going to go a long way to help with the rising cost of living,” says Colin Mang, assistant professor of economics at McMaster University.

The Canada Groceries and Essentials Benefit announced last month is now law, which means eligible families of four will receive up to $1,890 this year and about $1,400 annually for the next four years.

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An eligible single person will receive up to $950 this year, and about $700 annually for the next four years.

Prime Minister Mark Carney says the benefit is to help people afford groceries.

“This is money that goes to individuals, directly to individuals. It’s not based on what they spend, it’s not tied here. They can spend that money on anything they want, Canada is a free country, they can spend it on whatever they want,” the prime minister said at a press conference last month.

“Right now for a family of four. You can earn up to $76,000 and receive at least some of the HST tax credit. With the government’s new expanded program, that will increase to about $83,000 in household income and that’s going to allow a lot more families to be able to take advantage of this benefit,” Mang says.

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Shoppers say groceries are getting too expensive and that the GST rebate will help families, but only a little bit.

“Not when you’re paying on average about $200 for groceries. They give and they just take more back anyways.”

“It’s a step in the right direction. It’s getting out of hand now, it’s getting astronomical. You can barely afford to feed your family anymore.”

“It will help this year, it’s a struggle for anybody. We’re seniors and we’re on a fixed income. I don’t know how people with families do it.”

According to the federal government — since 2020 food prices have risen faster than overall inflation — costing the average household $782.

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