On July 5, 2023, the Canadian government introduced a one-time Grocery Rebate program. Eligible Canadians, including low- and modest-income individuals and families, can expect to receive this one-time grocery rebate from the Canada Revenue Agency (CRA) through direct transfers or cheques on July 5, 2023.
On May 11, 2023, the new one-time grocery rebate bill c-46, also known as the Cost of Living Act, officially became legislation after receiving royal assent.
Designed to provide financial relief to eligible Canadians struggling with the rising costs of groceries, this initiative will offer a rebate that doubles the GST/HST credit amount received in January 2023.
What is the Grocery Rebate Program?
The Canada Grocery Rebate Program is designed to ease the financial burden of rising food costs by offering a rebate on eligible grocery purchases. This program aims to provide financial support to Canadian families.
Who Can Get the Payment?
Approximately 11 million Canadians, with either a household income of $38,000 or less or an individual income of $32,000 or less, are expected to receive the rebate.
You will get the grocery rebate if:
- You were entitled to receive the GST/HST credit for January 2023.
- You filed a tax return for 2021, regardless of your income for that year.
Who is Eligible?
To be eligible for the Canada Grocery Rebate Program, both you and your spouse or common-law partner, if you have one, need to satisfy the criteria set for the base year 2021.
You can get the grocery rebate if you qualified to receive the GST/HST credit in 2021
A married or common-law couple with an annual income of $52,066 and no children, as well as individuals earning up to $49,166 per year, are eligible for a one-time grocery rebate payment. This payment will be automatically distributed to qualifying Canadians on July 5, 2023.
Grocery Rebate Payment Details
The Grocery Rebate payment will double the amount of your GST/HST credit from January 2023. The specific amount you receive is based on your family situation in January 2023 and your 2021 adjusted family net income.
Here are the maximum payment amounts you could receive based on your family situation:
|Family Situation||Rebate Amount|
|Single (no children)||$234|
|Single (with 1 child)||$387|
|Single (with 2 children)||$467|
|Single (with 3 children)||$548|
|Single (with 4 children)||$628|
|Married/Common-law (no children)||$306|
|Married/Common-law (with 1 child)||$387|
|Married/Common-law (with 2 children)||$467|
|Married/Common-law (with 3 children)||$548|
|Married/Common-law (with 4 children)||$628|
Even if you received your GST/HST credit as a lump sum in July 2022, you can still benefit from the Grocery Rebate. Remember, your benefits, tax refunds, and credit payments may be used to pay off outstanding balances.
The Canada Revenue Agency (CRA) will automatically distribute the rebate via direct deposit or cheque on July 5, 2023.
The amount you will receive as the rebate will be double the amount of your GST/HST credit payment from January 2023 and is based on your family situation and 2021 adjusted family net income.
What if I still need to get the rebate on July 5?
If you were expecting to receive the rebate on July 5 but have yet to get it, the government advises waiting for 10 days before contacting the CRA about the payment. Sometimes there may be delays, so giving it extra time is recommended.
To check the status of your benefits, you can log in to your CRA account. By accessing your account online, you can see if there are any updates or changes to your benefits, including the rebate payment. It’s a good way to stay informed about your eligibility and payment status.
Benefits of the Canada Grocery Rebate Program:
- Financial Relief: The rising costs of groceries can strain household budgets. By participating in the program, you can significantly reduce your grocery expenses and experience financial relief.
- Savings Opportunities: The program provides an excellent chance to save money on your grocery purchases. Over time, these savings can add up, providing you with more financial flexibility.
- User-Friendly Application Process: The program offers a user-friendly online portal with step-by-step instructions, making it accessible to everyone, regardless of technical expertise.
- Flexibility in Spending: You have the freedom to use the rebate amount received through the Canada Grocery Rebate Program as you wish. Whether you want to cover other essential expenses or treat yourself, the choice is yours.
The Canada Grocery Rebate Program is an invaluable initiative to help Canadian families save money on grocery purchases. The program aims to provide some financial relief from rising grocery costs. By following the eligibility criteria and understanding the payment details, you can effectively benefit from this initiative.
So, make sure you complete your 2021 tax return and keep an eye out for the rebate alongside your next GST/HST credit payment. Financial relief is just around the corner!