Canada

11 million Canadians on low or moderate incomes will receive a one-time discount on groceries on July 5

Millions of low- and modest-income Canadian households will receive a one-time grocery discount from the federal government this week.

The Grocery discount will be delivered 11 million eligible Canadians on July 5, by direct deposit or check through the Canada Revenue Agency (CRA), along with the next quarterly GST/HST credit payment.

For couples with two children and $35,000 in net income, this could mean an additional $467, and for single Canadians with no children, this could mean an additional $234. Seniors can expect an additional $225 on average.

The benefit is part of it Bill C-46, the Cost of Living Relief Act, No. 3, which was part of the federal government’s 2023 budget. The discount was passed on May 11. The discount is equal to double the amount of GST/HST credit a household received in January. The amount is calculated based on a household’s family situation in January 2023 and the adjusted net household income for 2021.

Recipients did not have to apply for the grocery discount. It is automatically calculated and delivered as a July GST/HST credit increase. However, taxpayers must have filed a 2021 tax return in order to receive the payment.

The government notes that it is possible that households are entitled to the grocery discount, but not the July GST/HST credit payment or vice versa, because the grocery discount is calculated based on the 2021 tax return, while the July GST/HST credit credit payment in July is calculated based on the 2022 tax return.

If there is an amount due to CRA, the discount can also be applied to an outstanding balance.

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The CRA gives a number of examples of the payment of the discount depending on the composition of the household. For example, a single parent with one child could receive up to $387, as could a married parent with one child, while a single parent with four children would receive $628, as well as a married parent with four children.

If you are single, you can receive a maximum benefit of:

  • $234 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

If you are married or have a common partner, you can get up to:

  • $306 (no children)
  • $387 (with 1 child)
  • $467 (with 2 children)
  • $548 (with 3 children)
  • $628 (with 4 children)

Anyone who does not receive the grocery rebate by the expected date is advised to wait 10 business days before contacting the Canada Revenue Agency at 1-800-267-6999.

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