Canada Groceries and Essentials Benefit Act

Summary#

• This bill raises the federal GST/HST credit for low- and modest‑income people to help with the cost of food and everyday needs.

• It gives a one‑time 50% boost for the 2025–26 benefit year and then a 25% boost to the maximum credit for five years after that.

• Key changes:

  • One extra GST credit payment in January 2026 that equals about a 50% top‑up for the 2025–26 year (based on your 2024 tax return).
  • From July 2026 to April 2031, regular quarterly GST credit payments are increased by about 25% of the maximum amount.
  • The 25% boost amounts will be adjusted for inflation after 2026.
  • Shared‑custody parents split the child‑related top‑ups, similar to current GST credit rules.
  • You do not need to apply; if you qualify for the GST credit and file taxes, payments come automatically.

What it means for you#

• Individuals and couples

  • If you already get the GST/HST credit, you will receive:
    • A one‑time extra payment in January 2026.
    • Bigger quarterly payments from July 2026 through April 2031.
  • The amounts still depend on your family income and go down as income rises.

• Parents

  • You get extra amounts for each child, on top of your regular GST credit.
  • If you share custody, the child amounts are split between parents, as with the current GST credit.

• Seniors, students, newcomers, and others with low or modest incomes

  • If you qualify for the GST credit and file a tax return, you will receive these increases automatically.

• If you don’t usually file taxes

  • You must file a tax return to get the GST credit and these top‑ups, even if you had little or no income.

• Timing

  • One extra payment: January 2026 (based on your 2024 tax return).
  • Higher quarterly payments: July and October each year, then January and April through April 2031 (based on your most recent tax return at the time).

Expenses#

No publicly available information.

Proponents' View#

• Provides quick, targeted relief for groceries and essential costs without creating a new program.
• Uses the existing GST credit system, so payments are automatic and simple for families.
• Focuses help on low- and modest‑income households who feel price increases the most.
• Adjusts amounts for inflation after 2026 so support does not erode over time.
• A five‑year increase gives some certainty while remaining time‑limited.

Opponents' View#

• Increases federal spending and could add to the deficit.
• May miss people who are eligible but do not file taxes.
• Temporary boosts do not address the root causes of high food and living costs.
• The phased formulas and timing could be confusing for recipients.
• Some say a broad credit is not as targeted as measures focused only on the lowest‑income households.