Canada Groceries and Essentials Benefit Act

Summary#

This bill raises the federal GST/HST credit (a tax‑free quarterly payment to help with sales taxes) for low- and modest‑income people. It boosts the credit by 50% for the 2025–2026 benefit year, then keeps it 25% higher for five years starting in 2026–2027. Payments continue to go out in July, October, January, and April. You must file your tax return to get it.

• 2025–2026: maximum annual GST/HST credit amounts rise by 50%.
• From 2026–2027 to 2030–2031: maximum amounts are 25% higher than before, with annual inflation adjustments.
• A special top‑up is built into the January 2026 payment so the full 50% boost is delivered for that year.
• Shared‑custody parents split the child amounts.
• The credit still phases out as family income rises, starting around the mid‑$40,000s.

What it means for you#

• Individuals and families who already get the GST/HST credit

  • Your quarterly payments go up.
  • For the 2025–2026 year, the total annual maximums increase by 50%.
  • From July 2026 to April 2031, the annual maximums are 25% higher than before and will be indexed to inflation each year.

• Examples of maximum annual amounts (before income phase‑out)

  • 2025–2026 (50% boost):
    • Up to about $1,047 for you.
    • Plus up to about $1,047 for a spouse or common‑law partner (or for a single parent claiming an eligible dependant instead).
    • Plus about $552 per child.
    • Single parents also get an extra $552.
  • 2026–2027 through 2030–2031 (25% boost, indexed):
    • Up to about $445 for you.
    • Plus up to about $445 for a spouse or common‑law partner (or for a single parent claiming an eligible dependant instead).
    • Plus about $234 per child.
    • Single parents also get an extra $234.
  • What this could look like:
    • Couple with two children: up to about $1,358 per year (after July 2026), paid quarterly.
    • Single parent with one child: up to about $1,124 per year (after July 2026), paid quarterly.
    • Actual amounts are lower if your family income is over about $46,000, and go to zero at higher incomes.

• Timing and how to get it

  • Payments come in July, October, January, and April.
  • January 2026 will include a top‑up to deliver the 50% increase for the 2025–2026 year.
  • You must file your tax return to receive the credit, even if you had little or no income.

• Parents with shared custody

  • The child amounts are split between parents who share custody.

Expenses#

No publicly available information.

Proponents' View#

• Helps families cope with high prices for groceries and other essentials by boosting a proven, targeted benefit.
• Delivers help fast and automatically through the existing GST/HST credit system—no new application needed.
• Focuses on low‑ and modest‑income households, where need is greatest.
• Indexing after 2026 helps the benefit keep up with inflation.
• Time‑limited 25% increase provides multi‑year stability while keeping long‑term costs in check.

Opponents' View#

• Increases federal spending and could add to the deficit.
• Cash benefits may not address root causes of high food prices, like supply chain issues or lack of competition.
• Some middle‑income households will see little or no increase due to the income phase‑out.
• The changing amounts (50% for one year, then 25% for five years) may confuse people expecting steady payments.