Trudeau govt announces tax break for all Canadians and the Working Canadians Rebate
SJ Singh/ Diaspora Correspondent/ November 21,2024
“The past few years have been challenging. It feels like the price of everything has gone up. And while inflation is cooling and interest rates are dropping, we know that Canadians aren’t feeling that in their household budgets yet” said Canadian Prime Minister Justin Trudeau
Trudeau said “Our government can’t set prices at the checkout, but we can give Canadians more money in their pocket – to help them afford the things they need and save for the things they want.”
Trudeau added “Starting December 14, 2024, we’re giving a tax break to all Canadians. With a GST/HST exemption across the country, Canadians will be able to buy essentials like groceries, snacks, and kids clothing – all tax-free”.
This new tax break will apply to:
- Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches.
- Restaurant meals, whether dine-in, takeout, or delivery.
- Snacks, including chips, candy, and granola bars.
- Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV.
- Children’s clothing and footwear, car seats, and diapers.
- Children’s toys, such as board games, dolls, and video game consoles.
- Books, print newspapers, and puzzles for all ages.
- Christmas trees.
This tax break is projected to last until February 15, 2025. By making essentially all food GST/HST free, this will deliver meaningful savings for Canadians, with real relief at the cash register.
Working Canadians will also get some cash back, with a new Working Canadians Rebate. That means Canadians who worked in 2023 and earned up to $150,000 will see a $250 cheque in their bank account or mailbox, starting early spring 2025. With the Working Canadians Rebate, we are putting money directly into the pockets of the middle-class – those who have worked hard to beat inflation. This will give 18.7 million Canadians that extra help to buy what they need.
We encourage Parliament and all parties to get this legislation passed quickly and unanimously so workers and working families get more money in their pocket.
Families will be spending quality time together over the coming weeks. Some will light Christmas trees and buy gifts. Some will share a meal with family and friends. Some might just make hot chocolate, order some takeout, and stay in for a movie night. With today’s announcement, we’re making life a bit easier, so Canadians have more money in their pocket for the things they want.
“Our government can’t set prices, but we can give Canadians, and especially working Canadians, more money back in their pocket. With a tax break for all Canadians and the Working Canadians Rebate, we’re making sure you can buy the things you need and save for the things you want” said Justin Trudeau, Prime Minister of Canada
“The holiday season is when expenses are highest for many Canadians and their families – even with inflation back down to 2 per cent and interest rates being cut four times this year. With new tax relief on groceries and seasonal expenses and a rebate for working Canadians, we are reducing costs when they are highest for Canadians. This is about helping you celebrate with family and friends and start 2025 with a little extra money in your bank account” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Quick Facts
- The GST/HST would be fully relieved on the supply or importation of qualifying goods for a period beginning on December 14, 2024, and ending on February 15, 2025. Further implementation details, including all qualifying goods, are available here.
- Canadians who have claimed tax credits for Canada Pension Plan/Quebec Pension Plan contributions or for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those who reported income from EI or QPIP benefits, with individual net income below $150,000 in 2023, would be eligible for the Working Canadians Rebate. Eligible Canadians would begin receiving the payments starting in spring 2025. More information on the rebate is available here.
- The government is focused on making life more affordable for Canadians, with actions that are already saving families and individuals thousands of dollars a year, including:
- A new National School Food Program, with $1 billion over five years to provide meals for up to 400,000 more kids each year, ensuring all children have the food they need to have the best start in life, regardless of their family circumstances. The Program is expected to save the average participating family with two children $800 per year in grocery costs, with lower-income families benefitting the most.
- More money through the Canada Child Benefit, to help with the costs of raising children and make a real difference in the lives of children in Canada. The Canada Child Benefit, which is providing up to nearly $8,000 per child in 2024-25, is indexed annually to keep up with the cost of living and has helped lift hundreds of thousands of children out of poverty since its launch in 2016.
- Saving families up to $14,300 per child, per year, with the Canada-wide $10-a-day child care system, which has already cut fees for regulated child care to an average of $10-a-day or less in over half of all provinces and territories and by 50 per cent or more in all others.
- Saving families about $730 per year with the Canadian Dental Care Plan, which is already available for children under 18, with family incomes under $90,000, because no one should have to choose between taking care of their kids’ teeth and putting food on the table.
The Working Canadians Rebate
The government can’t set prices at the checkout, but we can give Canadians more money in their pockets. To help them buy the things they need and save for the things they want, the government announced that it will be introducing legislation in Parliament that would provide for the delivery of a new $250 Working Canadians Rebate to 18.7 million Canadians in early spring 2025.
Eligible for the tax-free $250 rebate are all Canadians who worked in 2023, earned up to $150,000 individual net income, and meet the following requirements:
- Filed their 2023 tax return by December 31, 2024, and:
- claimed the tax credit for Canada Pension Plan or Quebec Pension Plan contributions on employment or self-employment earnings;
- claimed the tax credit for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums on employment or self-employment earnings; or,
- reported income from EI or QPIP benefits;
- Are a resident of Canada on March 31, 2025;
- Are not incarcerated for a period of at least 90 days immediately prior to April 1, 2025; and,
- Are not deceased on April 1, 2025.
The Canada Revenue Agency is already working to be ready to automatically deliver the $250 Working Canadians Rebate in early spring 2025, via direct deposit or cheque, to 18.7 million Canadian workers who satisfy the above eligibility requirements.
- Filed their 2023 tax return by December 31, 2024, and:
