Canada’s 2023 Budget: What You Need to Know About the Grocery Rebate for Low- to Modest-Income Canadians

The Grocery Rebate announced in Canada’s 2023 budget aims to provide relief to low- to modest-income Canadians who are struggling with rising food prices due to the impact of global inflation. Despite the fact that the country’s economy is recovering from the pandemic, many Canadians are still facing financial difficulties due to the cost of living.

The new benefit, which is a one-time payment, is intended to be rolled out through the GST/HST rebate system once a bill implementing it passes in the House of Commons. This move essentially re-ups and re-brands the recent GST rebate boost, and the benefit will be automatically rolled into the GST/HST credit system. This means that eligible Canadians will not have to do anything besides file their tax return in order to receive the payment. While no specific date for the payments has been announced, upcoming GST/HST credit payment dates for 2023 include April 5, July 5 and Oct. 5.

The Grocery Rebate is targeted at 11 million low- to modest-income Canadians who are facing the greatest financial challenges. It will provide eligible couples with two children with up to $467, single Canadians without children with up to $234 and seniors with $225 on average. Although the budget does not provide specific information about the eligibility brackets based on income, it outlines hypothetical scenarios where a couple earning $38,000 per year and an individual earning $32,000 both received the maximum rebate.

It is worth noting that the eligibility criteria for the GST/HST credit might provide some insight into who will be eligible for the maximum Grocery Rebate amounts. The GST/HST benefit is reduced as income rises and is phased out entirely once income reaches just over $49,000 for a single person, $50,000 for a couple without children, and more than $60,000 for a couple with four children.

Overall, the new Grocery Rebate is expected to provide much-needed financial relief to many Canadians who are struggling with rising living expenses. As Minister of Finance Chrystia Freeland explained, “Our more vulnerable friends and neighbours are still suffering from higher prices… That’s why our budget contains targeted, temporary relief from the effects of inflation for those who need it.”