Inflation is currently eating away at many Canadian's savings. Whether it's utility bills, gym memberships, groceries, or gasoline, we're all feeling it.
With inflation impacting grocery prices by significant margins, Canadians are looking for additional ways to save money. Fortunately, the Government has put into place the Canadian grocery rebate. In this article, we're going to talk about it and what you can expect.
What is the grocery rebate in Canada?
The grocery rebate in Canada was first introduced in the 2023 budget. This one-time rebate will provide lower and middle-class Canadians with targeted relief due to the impacts of inflation.
The one-time payment grocery rebate was introduced in Bill C-46, called the Cost of Living Act. It will help Canadians reduce the burden of grocery costs and strengthen public health care with a $2B Canada Health Transfer (CHT) top-up to help reduce hospital backlogs and wait times.
The Government expects the grocery rebate to have over 11 million recipients, over 25% of Canada's total population.
Why did they introduce the grocery rebate?
Due to rising inflation, the grocery rebate was introduced in the federal budget to help Canadians mitigate the rising cost of food. With food inflation being in the double digits for quite some time due to the impacts of the pandemic, groceries have increased materially, making it very hard for low to modest-income Canadians to survive.
The Federal Government hopes this one-time grocery rebate will provide some inflation relief for many currently struggling Canadians.
Who is eligible for the grocery rebate in Canada?
The grocery rebate is available to individuals with a net income of less than $32,000 and families who earn less than $38,000.
Remember that to qualify for the rebate, you also need to have filed your 2021 tax return. This is because your rebate eligibility will be based on this tax year.
How to apply for grocery rebates in Canada?
There is no need to apply for the grocery rebate in Canada. Suppose the Government determines you fit within the criteria of eligibility. In that case, you will receive a large GST/HST credit cheque in July. As mentioned, ensure you have filed your 2021 taxes, even if you have made no income. The ability for you to get paid the grocery rebate depends on it.
When can we expect the grocery rebate in Canada?
The grocery rebate will be delivered to eligible Canadians on July 5th, 2023. The cheque will be mailed to you if you have not signed up for direct deposit through the Canada Revenue Agency. Expect at least a few weeks for the cheque to hit your inbox.
Your grocery rebate payments will be combined with your July GST credit payment.
What is the Canadian grocery rebate?
Single Canadians could receive a maximum payment of the following:
- $234 (no children)
- $387 (with 1 child)
- $467 (with 2 children)
- $548 (with 3 children)
- $628 (with 4 children)
Eligible couples can receive a maximum payment of the following:
- $306 (no children)
- $387 (with 1 child)
- $467 (with 2 children)
- $548 (with 3 children)
- $628 (with 4 children)
Will the grocery rebate help Canadians?
There is no doubt this one-time payment will help Canadians. However, the question is always whether or not it is enough.
With the rising cost of living in Canada and grocery bills for families often hitting the four-digit figure every single month, a single mother receiving $467 for her and her two children no doubt helps but may not move the needle in terms of reducing the pressure on Canadian when it comes to survival.
Overall, the grocery rebate is excellent news. Still, the ultimate goal should be for Federal Governments to bring down the rate of food inflation to make it more affordable for Canadians to live.