The 2023 federal budget announced a grocery rebate to help combat the rising cost of food as inflation remains high.Carlos Osorio/Reuters
Starting July 5, Canadians can expect to receive a grocery rebate to help combat the rising cost of food as inflation remains high. The government announced the rebate during the 2023 federal budget, which includes billions in new spending for green technology projects and expanding a national dental care program.
Here’s what we know about the rebate so far.
What is the federal grocery rebate?
The federal government is doubling the one-time GST rebate for lower-income Canadians, a $2.5-billion measure that it’s calling a “grocery rebate.” The money can be used for anything, but the name is a nod to rising food prices.
The maximum rebate for an eligible household of two parents and two kids would be $467, which is equivalent to a bit less than $9 per week.
Single people without kids will get a rebate of up to $234, while a senior will get $225 on average.
The federal grocery rebate is available this week. Who is eligible and how to get it
Who is eligible for the grocery rebate?
The rebate will be eligible to the estimated 11 million Canadians on low and modest incomes to help with increased costs. Finance Minister Chrystia Freeland said in her Commons speech that “vulnerable” Canadians “are still feeling the bite of higher prices.” She said the budget “delivers targeted inflation relief to those who need it most.”
Why did Chrystia Freeland include the rebate in the 2023 budget?
Leading up to Tuesday, Ms. Freeland emphasized that the budget would include various affordability measures aimed at lower-income Canadians at a time when the price of groceries is still high. Statistics Canada said earlier this month that the cost of groceries in February rose 10.6 per cent compared with a year before, slightly down from an 11.4 per cent year-over-year increase in January.
In the month of February, multiple pantry staples increased by nearly double the overall inflation rate for food purchased from stores. Pasta prices rose 23.1 per cent last month compared with a year earlier, flour jumped 22.9 per cent and butter increased 19.7 per cent, according to Statistics Canada.
When will eligible Canadians be able to access the rebate? And how will it be accessed?
The grocery rebate would be delivered through a one-time payment from the Canada Revenue Agency starting July 5.
What other affordability measures are included in the 2023 budget?
- Dental plan: A national dental care plan for lower-income people will get started later this year. Uninsured Canadians with annual family incomes of less than $90,000 will be provided with dental coverage, and there will be no co-pays for families with incomes less than $70,000.
- Expanding student grants: To reflect rising tuition costs, the budget announced the expansion of Canada Student Grants by up to $4,200 for full-time students, and the flexibility to withdraw more money from registered education savings plans. The new Registered Education Savings Plan rule would allow $8,000 in investment earnings and government grant money to be withdrawn from an RESP in the first 13 weeks of enrollment in a full-time program, up from $5,000.
- Credit card charges: The budget announced commitments from Visa and MasterCard to cut credit card processing fees charged to small business by up to 27 per cent from the current average. This savings should help ease the risk of businesses adding surcharges on customers.
With reports from Bill Curry and Rob Carrick