As the holiday season approaches, the Canadian government is taking steps to ease the financial strain on Canadians with a pair of initiatives aimed at making life more affordable. Prime Minister Justin Trudeau has unveiled plans for targeted Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief and a one-time Working Canadians Rebate, offering crucial financial support during the festive period.
Temporary GST/HST Relief: What You Need to Know
The government has proposed a temporary GST/HST relief period from December 14, 2024, to February 15, 2025. During this time, Canadians can expect a reduction in GST/HST on a variety of essential goods and services, easing the cost of holiday purchases.
Here’s a breakdown of the items eligible for the temporary relief:
- Prepared foods: This includes items like vegetable trays, pre-made salads, sandwiches, and other similar offerings.
- Restaurants: Relief will apply to dine-in meals, takeout orders, and food delivery services.
- Children’s clothing and accessories: The relief will cover clothing, footwear, car seats, and diapers for children.
- Toys: Certain toys, including board games, dolls, and video-game consoles, will be eligible.
- Books and newspapers: Print newspapers and books will benefit from the GST/HST relief.
- Christmas trees: Christmas trees and similar decorative trees will also qualify for the reduction.
- Snacks: Items like chips, candy, and granola bars will be included in the list of qualifying products.
- Alcoholic beverages: Beer, wine, cider, and pre-mixed alcoholic beverages with an alcohol by volume (ABV) below 7% will see the temporary tax break.
While these changes are subject to parliamentary approval, the Canada Revenue Agency (CRA) plans to implement the relief starting December 14, 2024, once the proposed legislation is tabled. Detailed information about the qualifying goods will be available through a backgrounder accompanying the announcement.
The Working Canadians Rebate: A One-Time Financial Boost
In addition to the GST/HST relief, the government is introducing the Working Canadians Rebate, a one-time payment aimed at helping approximately 18.7 million Canadian workers. The rebate, valued at $250 per individual, is designed to provide financial support for those facing the pressures of inflation and rising costs.
To qualify for the rebate, individuals must meet the following criteria:
- Filed a 2023 tax return by December 31, 2024, and reported a net income of up to $150,000.
- Have claimed tax credits for Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions on employment or self-employment earnings OR have claimed credits for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums on earnings OR have reported income from EI or QPIP benefits.
- Be a resident of Canada on December 31, 2023, and remain a resident until at least March 31, 2025.
- Not be incarcerated for at least 90 days immediately before April 1, 2025.
- Not be deceased as of April 1, 2025.
The rebate is set to be delivered in spring 2025, with further information on the program to be shared in the coming weeks.
What’s Next?
While both initiatives are still subject to legislative approval, the Canadian government is committed to supporting workers and families through the upcoming holiday season. The Canada Revenue Agency (CRA) is already working to provide resources to businesses, ensuring they are prepared to correctly apply the GST/HST relief.
For more details on these proposed measures, Canadians are encouraged to refer to the backgrounders provided with today’s announcement or visit official government resources for updates in the coming days.
These measures are part of the government’s ongoing efforts to help reduce the cost of living and ensure that Canadians can enjoy the holiday season with less financial stress.
Stay tuned for more details as the legislation progresses through parliament.