Chamber
commons
Stage
3rd Reading
Introduced
Jan 28, 2026
Progress
This bill temporarily boosts the GST/HST credit by 50% in early 2026 and 25% annually for five years after that.
Key Changes
- Increases the maximum GST/HST Credit by 50% for the benefit year covering January 2026 (based on 2024 tax returns)
- Increases the maximum GST/HST Credit by 25% for each quarterly payment from July 2026 to April 2031 (a five-year period)
- Sets specific dollar amounts in the GSTC formula: approximately $1,047 per adult and $552 per child for the January 2026 boost, and $445 per adult and $234 per child for the ongoing 25% increase
- Includes special calculation rules for shared-custody parents to ensure both parents receive a fair share of the increased benefit
- Adds an indexation provision so the new 25% top-up amounts (from 2026–2027 onward) are adjusted for inflation annually
- Includes coordinating amendments to align with Budget 2025 Implementation Act (Bill C-15) if that bill also receives royal assent
Gotchas
- The 50% boost is a one-time payment in January 2026 only, while the 25% increase runs for a fixed five-year period ending April 2031 — neither change is permanent beyond those timeframes
- Eligibility and payment amounts are based on previously filed tax returns (2024 taxes for the January 2026 payment), meaning Canadians who have not filed taxes may not automatically receive the benefit
- The income phase-out thresholds mean that individuals earning above approximately $45,521–$46,432 will see reduced benefits, and higher earners may receive nothing
- The bill includes coordinating amendments that adjust its text depending on whether the separate Budget 2025 Implementation Act (Bill C-15) also passes, creating a dependency between two pieces of legislation
- The fiscal cost of the increased payments is not stated within the bill text itself
Who's Affected
- Lower- and middle-income Canadians who currently receive the GST/HST Credit
- Families with children, who receive additional amounts per dependent child
- Single individuals with low incomes
- Shared-custody parents, who have a specific calculation method applied
- Seniors and others on fixed incomes who qualify for the GSTC
Vibes
0 responses
Gotchas
- The 50% boost is a one-time payment in January 2026 only, while the 25% increase runs for a fixed five-year period ending April 2031 — neither change is permanent beyond those timeframes
- Eligibility and payment amounts are based on previously filed tax returns (2024 taxes for the January 2026 payment), meaning Canadians who have not filed taxes may not automatically receive the benefit
- The income phase-out thresholds mean that individuals earning above approximately $45,521–$46,432 will see reduced benefits, and higher earners may receive nothing
- The bill includes coordinating amendments that adjust its text depending on whether the separate Budget 2025 Implementation Act (Bill C-15) also passes, creating a dependency between two pieces of legislation
- The fiscal cost of the increased payments is not stated within the bill text itself
Summary
Bill C-19, called the Canada Groceries and Essentials Benefit Act, changes the Income Tax Act to increase the GST/HST Credit (GSTC) — a tax-free payment the federal government sends to lower- and middle-income Canadians to help offset the cost of sales taxes. The bill provides a one-time 50% boost to the GSTC for the 2025–2026 benefit year, with a payment issued in January 2026. After that, it increases the regular GSTC amounts by 25% each year from July 2026 through April 2031, a period of five years. The GST/HST Credit is already paid quarterly to eligible Canadians based on their income and family size. This bill increases the dollar amounts used in the formula to calculate those payments, meaning eligible individuals, couples, and families with children would receive larger quarterly cheques. The benefit phases out as income rises above certain thresholds. The bill was introduced to help Canadians cope with the rising cost of groceries and everyday essentials. It targets lower- and middle-income households who are most affected by higher prices for food and basic goods.
Automatically generated from bill text using Claude
Vibes
0 responses