Just in time for the busy holiday season, the federal government has announced some temporary measures around GST. There's a list of items that you won't pay GST/HST on from December 14, 2024 to February 15, 2025.
But there's more – the government will give another lump sum rebate to anyone who was employed in 2023.
Here are the full details on both. Just note that legislation needs to be passed before these can be implemented, but it appears as though there is sufficient support for these measures in the House Of Commons.
Save the GST/HST on some essentials
The first big measure is you won't pay the GST or HST (depending on where you live) for some goods. This measure will start on December 14, 2024 and run until February 15, 2025.
How much you save will actually depend on where you live. If you live in a province that has HST, you'll save on the provincial portion of the sales tax too (these provinces are Ontario, New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland). If your province charges PST separately, you'll save the 5% GST.
Now, onto the items. You can view the full list of items that will see this benefit on this government page.
It basically comes down to food purchases and items for kids.
Some food at grocery stores does get taxed, typically food prepared in-store and junk food, while if you visit a restaurant you'll get taxed on your meal.
Under these measures, you won't pay the sales tax anymore.
As for kid’s items, the full list includes a lot of basics, but also some things that may surprise you. Here's a partial list:
- Footwear
- Diapers
- Car seats
- Books
- Toys
- Puzzles
- Video games (consoles, controllers, physical media)
You can consult the government page for a full listing of eligible items.
Working Canadians rebate
The federal government is also going to introduce legislation for a one-time rebate of $250 for any working Canadian who earned up to $150,000 in net income in 2023.
The full details on this benefit can be found here. There are some eligibility criteria, but these are the basics:
- Filed a 2023 tax return and reported a net income of less than $150,000
- Resident of Canada as of March 31, 2025
These rebates will be delivered in early spring 2025, either by direct deposit or cheque. The government estimates 18.7 million Canadians will be eligible.
What are your thoughts on these announcements?
These are temporary measures, but for just about everyone it's easy savings.
Any thoughts to add about these measures?
Leave them in the comments below.
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