Thursday, May 23, 2024

How does Canada’s 2023 Budget affect you and your family under the current inflationary climate?

Canada’s 2023 Budget has introduced some new proposals intended to help you and your family combat rising inflation. Issues such as a grocery rebate, changes to registered accounts, and a national dental care plan. We are here to summarize the key points that should interest you.

The federal government’s yearly budget speech marks the introduction of new policies, tax measures and fiscal updates intended to help Canadians. Here’s a summary of key points from Canada’s 2023 Budget that could impact you and your family’s personal finances during this high-inflation economic climate. You can expect most if not all of them to be implemented before the next budget is tabled.

Finance Minister Chrystia Freeland

Finance Minister Chrystia Freeland

Canada’s 2023 Budget introduces a one-time grocery rebate

Due to the current high inflation and its impact on many Canadians at grocery stores, Canada’s 2023 Budget will introduce a one-time grocery rebate that would be payable to recipients of the goods and services (GST) tax credit. The quarterly GST credit—the remaining payments for 2023 are in April, July and October—is payable to low-income and modest-income taxpayers based on their previous year’s tax return.

The new grocery rebate would be issued as soon as the legislation has passed. The rebate would provide couples with two children with up to $467, single Canadians without children up to $234, and seniors with an average of $225. Although the rebate is tax-free, it