Double GST credit payment amounts will be temporarily provided to eligible Canadians, according to a news release from the Department of Finance Canada.
With this change, families with low and modest incomes will receive a bit of relief from the strain of inflation.
Let’s take a look at the finer details of this announcement and what it means for Canadians.
- The double GST credit amounts
- Double GST payment dates
- Why is double GST being offered?
- More news to come
So what will the new double GST amounts be?
The amount that an individual receives as a double GST payment depends on the size of their family:
- Individuals with no children will receive up to an extra $234 on each payment.
- Families with 2 children will receive up to $467 more on each payment.
- Senior citizens will receive an average of $225 extra on each payment.
This means that the following maximum amounts will be possible:
- Individuals without children – $467
- Married or common-law partners – $612
- Single parents – $612
On top of these amounts, parents will receive $161 for each of their children under the age of 19.
Overall, the new double GST credit will provide $2.5 billion extra to approximately 11 million families and individuals throughout Canada.
When will these double GST credit payments be made?
Any Canadians who already receive this credit can expect to automatically receive a double GST payment, starting in early November.
While there aren’t any more GST credit payments scheduled for 2022 (the final payment for 2022 was made on October 5), recipients can expect their January 5, 2023, payment to be double the typical amount.
Why is double GST being offered?
Put simply, the Canadian government is trying to alleviate some of the financial stress caused by inflation. We’ve been hearing a lot about inflation lately and how it’s affecting the everyday lives of Canadians, and it’s nice to know that the government is taking note of these struggles.
When discussing this double GST solution, Deputy Prime Minister and Finance Minister Chrystia Freeland called this a “pipe” that allows the Department of Finance to help vulnerable citizens.
Of course, the point is to help those families and individuals who need it the most. The GST credit is specifically for those with low and modest incomes. The maximum amount is only provided to those with family net incomes under $39,826 (for the 2021 tax year).
Net incomes higher than this may still receive GST credit payments, but the amount is lowered as the income increases. When a single person reaches a net income of $49,200 and/or a couple with 2 children reaches $58,500, the benefit is fully phased out.
And there’s more to come
The temporary double GST payment is only 1 of 3 new policies proposed by the Liberal government aimed at helping Canadians deal with the rising cost of living.
The 2 bills are:
- Bill C-30, the Cost of Living Relief Act, No. 1 (Targeted Tax Relief), and
- Bill C-31, the Cost of Living Relief Act, No. 2 (Targeted Support for Households)
It’s Bill C-30 that deals with the double GST, and Bill C-31 deals with a few other issues. Bill C-31 is still under review, and it has 2 parts to it:
- The Canadian Dental Benefitwould provide parents with funds to cover dental care for any children under 12 years old. They could receive up to $650 per year, per child, to cover these expenses.
- The one-time top-up to the Canada Housing Benefit of $500 would be offered to renters as a means of alleviating the soaring costs of housing in Canada. The intended recipients are families with net incomes under $35,000 and individuals with net incomes under $20,000.
What do you think of this temporary double GST announcement?
Many Canadians will benefit from this additional government funding.
Are you someone who will receive double GST amounts? How will this extra money help you and your family?
Feel free to share your thoughts on this by leaving a comment in the section below.
Leave a comment
Comments