20 Sep 2022
New Federal Government Measures
“Making life more affordable for Canadians this year” - Updates by the Federal Government of Canada.
On September 13, 2022, the Federal Government announced the following government measures to help “make life more affordable for millions of Canadians” including:
- Doubling the GST/HST Credit for 6 Months
- Canada Dental Benefit
- One-Time Top-Up to the Canada Housing Benefit Program
These new government measures are pending Parliamentary approval and Royal Assent.
Doubling the GST/HST Credit for 6 Months
A one-time, lump-sum payment of up to $467 is to be paid to all current recipients through the existing GST/HST credit system. The amount received will depend upon the family size and family income.
An application is not required but the 2021 personal tax return is required to be filed to be eligible. Payments are expected before the end of 2022.
The Canada Dental Benefit
The Canada Dental Benefit would provide up-front tax-free payments of up to $650 per child per year to cover dental expenses for children under 12 in 2022. This benefit will only be provided to families without dental coverage and adjusted combined net earnings of under $90,000 (the benefit amount increases as the income decreases).
This proposed government measure is expected to be implemented on December 1, 2022, but will cover dental expenses incurred on or after October 1, 2022. Details on the application process have not yet been communicated.
One-Time Top-Up to The Canada Housing Benefit Program
The one-time tax-free payment of $500 would be provided to low-income renters (renters with an adjusted net income below $35,000 for families or $20,000 for individuals), proposed to be implemented by the end of 2022.
Eligibility for this new government measure will be determined based on the 2021 personal tax return required along with other prescribed information for all eligible renters.
Need Help from Our Tax Experts?
These are trying times and we are here for you. If you have and questions about these new federal government measures to make life more affordable for Canadians, please reach out to our tax experts or contact us through one of our Manning Elliott branches.
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NOTE: Tax laws are complex and are subject to frequent change. The contents of this article are not intended to represent legal or tax advice. Please consult your tax adviser before employing any strategies discussed here.