Start of Canadian Government “Grocery Benefits”

The Canadian government has started paying a “grocery benefit” for low- and middle-income earners. Eligible citizens will be paid on July 5.

This benefit, effectively doubling the GST/HST tax credit, was approved in this year’s federal budget. This is called a “grocery rebate” because it aims to deal with rising food prices, but it is up to you whether you use it for food. There are no restrictions on how it can be used.

$2.5 billion has been earmarked by the government which will cover over 11 million people. Due to its position as a GST/HST tax credit, the tax return for 2021 must be filed in 2022 to be eligible for benefits.　The amount received will be determined by family composition as of January 2023 and household income for tax returns for 2021, the Canadian government website explains.

There is no need to apply to receive the benefits, and the refunds will be automatically paid to those eligible using the refund method (bank transfer or mailed check) registered with the Canada Revenue Agency (CRA).