The Canadian Government announced the introduction of a Grocery Rebate as part of the 2023 Budget. Its primary purpose is to provide financial assistance to low and modest-income Canadians during rising living costs, especially for groceries.
The Grocery Rebate was established under Bill C-46, known as the Cost of Living Act, No. 3, which received Royal Assent on May 11, 2023. The Grocery Rebate was issued on July 5, 2023, along with the next quarterly GST/HST credit payment.
What is the Canada’s Grocery Rebate?
A Grocery Rebate is a financial refund given to citizens as a part of a support program. The Canadian government’s 2023 initiative refers to one-time financial assistance aimed at helping eligible Canadians compensate for the increased living cost due to inflation.
Despite Canada’s inflation rate dropping to 3.4% in May, grocery prices rose rapidly, up 9% yearly. In a report released last month, the Competition Bureau ruled that the lack of competition in the Canadian grocery sector influences food prices. The Grocery Rebate was included in the federal budget for 2023 to deal with rising grocery prices.
Who Gets Grocery Rebate in 2024?
Eligibility for this rebate depends on whether an individual was entitled to receive the GST/HST credit for January 2023. Additionally, filing a tax return for 2021 is necessary, even if you have no income. One might be eligible for the Grocery Rebate but not for the July GST/HST credit or vice versa, as they are calculated based on different tax years.
The beneficiary must be 19 years old and qualify as a resident for tax purposes. To get the rebate amount, a family’s net income should not be more than $38000 and $32000 for an individual. Payments will be reduced if the net income on the 2021 tax return is more than $39,826.
How much will you Receive in Grocery Rebate?
The Rebate amount varies based on the individual’s family situation as of January 2023 and the 2021 adjusted family net income. The rebate amount is given to 11 million families with low or modest net income.
The payment was made through direct deposit or cheque, facilitated by the Canada Revenue Agency. The people were informed to wait 10 business days if they did not receive the amount in their account. To check the credited amount, eligible beneficiaries were asked to log in to their CRA account to confirm it.
| Category | Net Income | Rebate Amount | GST Credit of 2023 |
|---|---|---|---|
| Single mother | $30,000 | $386.50 | $821 |
| Single senior citizen | $20,000 | $233.50 | $496 |
| Couple with 2 children | $35,000 | $467 | $992 |
The payment also varies for the single mother and for married or have a common-law spouse, depending on the number of children she or they have:
| Number of children | Single Mother | Common Law partner |
|---|---|---|
| 0 | CAD 234 | CAD 306 |
| 1 | CAD306 | CAD 306 |
| 2 | CAD 467 | CAD 467 |
| 3 | CAD 548 | CAD 548 |
| 4 | CAD 628 | CAD 628 |
Who will not receive the Payment?
- The people who are not citizens of the country for income tax purposes.
- The person has spent at least 90 days in jail or a similar institution.
- If the individual is an officer or servant of another country, they are not required to pay tax in Canada.
- The recipient is no longer alive.
How to apply for grocery rebate Canada?
The one-time Grocery Rebate program in Canada ended in July 2023. There is currently no announcement of a grocery rebate for 2024.
Here’s how the Grocery Rebate worked in 2023:
- You didn’t need to apply separately.
- Canadians who qualified for the GST/HST credit payment in January 2023 automatically received the Grocery Rebate alongside it.
- Eligibility was based on your 2021 tax return, so filing a tax return for 2021 was crucial, even if you had no income to report.
If you’re interested in similar programs to help with the cost of living, you can explore these options:
- GST/HST credit: This is an ongoing benefit from the federal government to help low and middle-income Canadians offset sales tax. You can find out more and see if you’re eligible here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html
- Provincial/Territorial Benefits: Some provinces and territories offer their own benefits and programs to assist residents with living costs. You can find the relevant website for your province or territory through a search engine.
Will there be another Grocery Rebate Payment in 2024?
It is important to remember that the 2023 Grocery Rebate was implemented as a one-time financial assistance in the Canadian federal budget. As a result, there are currently no formal plans or announcements for distributing a Grocery Rebate in 2024.
However, if the Canadian Government decides to implement a similar rebate in the future, based on the example set in 2023, such a payment would likely be distributed around July 2024. We will keep you informed on this.
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