Canada Groceries and Essentials Benefit Act

Summary#

• This bill increases the federal GST/HST credit for low- and modest-income people to help with the cost of groceries and essentials.

• It boosts the maximum GST/HST credit by 50% for the 2025–26 benefit year, then by 25% each year for five years starting in 2026–27.

• Key changes:

  • One-time top-up in January 2026 that brings the 2025–26 GST/HST credit up by 50% overall.
  • Extra quarterly top-ups from July 2026 through April 2031 that keep the credit about 25% higher than normal.
  • The extra amounts phase out as income rises, using the same basic eligibility rules as the current GST/HST credit.
  • Shared-custody parents get split amounts, as they do for the regular credit.
  • The five-year top-up amounts are indexed (adjusted) for inflation starting with returns for 2027 and later.

What it means for you#

• General

  • If you qualify for the GST/HST credit and file your taxes, you will get more money automatically. No separate application is needed.
  • The January 2026 top-up is based on your 2024 tax return. Later top-ups use your most recent filed return.

• Individuals and families already getting the GST/HST credit

  • 2025–26: You receive about 50% more than your usual annual GST/HST credit. The extra shows up as a one-time payment in January 2026.
  • 2026–27 to 2030–31: You receive about 25% more than your usual annual credit, paid as quarterly top-ups from July 2026 to April 2031.
  • Example: If your usual annual credit is $600, it would rise to about $900 for 2025–26, then about $750 a year from mid-2026 to spring 2031.
  • The extra amount is larger for couples and parents with children, and smaller for people with no spouse or dependants.

• Income phase-out

  • The top-ups shrink as your family income goes up, similar to today’s rules. People with middle incomes may get a small amount or nothing.

• Parents and shared custody

  • If you share custody of a child, each parent’s top-up is adjusted so the added amount is shared fairly, as with the regular credit.

• Newcomers, students, and seniors

  • If you are 19 or older (or have a spouse/partner or a child) and you file a tax return, you may qualify based on income. Filing on time is important to receive payments.

• What does not change

  • This bill does not change GST/HST tax rates on purchases. It only increases the credit paid to eligible people.

Expenses#

No publicly available information.

Proponents' View#

• Helps with the cost of groceries and other necessities during a period of high prices.
• Targets help to low- and modest-income households, who are most affected by rising costs.
• Uses the existing GST/HST credit system, so payments are automatic for tax filers and admin costs are low.
• Time-limited: provides relief now without making a permanent expansion.
• Indexing after 2026 helps the added support keep pace with inflation.

Opponents' View#

• Increases federal spending and could add to the deficit.
• May be confusing because of multiple top-ups and changing amounts over time.
• Relies on tax filing; people who do not or cannot file may miss out.
• Does not address root causes of high food prices, such as competition, supply chains, or taxes on necessities.
• Some middle-income households may see little or no benefit, raising fairness concerns.