The government of Canada has announced two big measures to provide tax relief to Canadian citizens including international students and foreigners who have permanent citizenship.
The Canadian government has announced that it will be introducing legislation in Parliament that would provide for the delivery of a new $250 Working Canadians Rebate to 18.7 million Canadians in early spring 2025.
Prime Minister Justin Trudeau’s government also announced that it will be introducing legislation in Parliament that would provide for a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries and holiday essentials.
These two measures are aimed to give Canadians more money in their pockets.
Working Canadians will get some cash back, with the new Working Canadians Rebate. That means Canadians who worked in 2023 and earned up to $150,000 will see a $250 cheque in their bank account or mailbox, starting early spring 2025
The tax-free $250 rebate is available to all Canadians who worked in 2023, earned up to $150,000 in individual net income, and filed their 2023 tax return by December 31, 2024.
The Canada Revenue Agency is already working to be ready to automatically deliver the $250 Working Canadians Rebate in early spring 2025, via direct deposit or cheque, to 18.7 million Canadian workers who satisfy the above eligibility requirements.
The government is proposing that the GST/HST be fully and temporarily relieved on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, to February 15, 2025. Businesses are expected to remove the GST/HST on qualifying goods at checkout as of December 14, 2024.
A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would realize GST savings of $100 over the two months.
The expected federal tax relief from removing the GST from these qualified goods for two months is $1.6 billion.
