In an effort to help Canadians cope with the rising cost of groceries and other day-to-day necessities, Finance Minister Chrystia Freeland and Prime Minister Justin Trudeau have introduced a targeted plan to temporarily boost the GST credit. Labeled informally as the “grocery rebate,” this initiative forms part of the federal government’s ongoing inflation relief efforts and was originally announced during the spring federal budget. With the cost of living strained by inflation, the plan aims to provide financial assistance to millions of eligible Canadians.
This one-time payment, reminiscent of the GST credit top-up introduced in 2022, is designed to reach low- and modest-income households through an enhanced GST rebate. While officially titled the temporary “Grocery Rebate,” the support will be dispersed through Canada’s existing GST credit system. Here’s everything you need to know about this initiative, including who qualifies, when payments will be distributed, and how it could impact your household finances.
Grocery Rebate Summary Table
| Category | Details |
|---|---|
| Program Name | Grocery Rebate (GST Credit Top-Up) |
| Announced | Federal Budget, Spring 2023 |
| Payment Date | July 5, 2023 |
| Eligibility | Low to modest-income Canadians already eligible for GST Credit |
| Payment Amount | Up to $234 per individual; up to $467 for a couple with two children |
| Delivery Mechanism | Automatically deposited with GST Credit |
What changed this year
The grocery rebate is essentially an extra one-time payment to help families and individuals with their cost of living in the wake of surging inflation. While food inflation has moderated slightly, it still outpaces overall inflation. In response, the federal government targeted the same income brackets as the GST/HST credit recipients from the 2021 tax year, with no application needed on the recipient’s end.
The 2023 measure mirrors the 2022 top-up, but is adapted for current inflationary challenges. Budget documents estimate that over 11 million Canadians will receive the rebate, amounting to $2.5 billion in total federal spending for the relief.
Who qualifies and why it matters
Eligibility for the grocery rebate is tied directly to recipients of the GST/HST credit. This means if you were eligible based on your 2021 tax return, you should automatically receive the top-up on July 5, 2023. The Canada Revenue Agency (CRA) handles disbursements via direct deposit or cheque, depending on your setup for previous credits.
The initiative stands to provide relief especially for families with children, seniors, and individuals with disabilities — all groups who have been disproportionately affected by higher grocery bills and utility costs. If you received the GST credit in January 2023, chances are you qualify for this rebate. The income thresholds for eligibility remain consistent with those used for previous GST credit assessments.
“This grocery rebate puts money back in the hands of families who need it most — a tangible response to everyday challenges.”
— Finance Minister Chrystia Freeland
How much you could receive
The exact amount varies based on net income and family size. On average:
- Single Canadians without children may receive up to $234.
- Couples with two children may receive up to $467.
- Single seniors may expect around $225.
The amount is calculated based on previous GST credit entitlements, so not everyone will receive the maximum. However, these top-up funds are non-taxable and will not impact eligibility for other federal programs.
Payment dates and delivery method
The grocery rebate will be delivered alongside the July GST credit payment on July 5, 2023. There’s no need to apply—eligible recipients will see it either automatically deposited into their bank accounts or receive a cheque by mail. For those with direct deposit already set up for other CRA benefits, the process remains seamless.
It’s critical to ensure your CRA account details and direct deposit info are up-to-date to avoid delays.
Winners and losers of the rebate plan
| Group | Impact |
|---|---|
| Low-income families | Direct benefit of up to $467; significant relief for food costs |
| Single adults with low income | Relief of up to $234; helps with general living expenses |
| Seniors with limited income | Receive meaningful support of up to $225 |
| High-income households | No benefit; above income threshold for GST credit |
| Those who didn’t file 2021 taxes | Miss out unless retroactive filing is completed |
How to apply step-by-step
There is no separate application for the grocery rebate. The Canada Revenue Agency automatically reviews past GST credit eligibility. Follow these steps to ensure you qualify and receive it:
- Ensure your 2021 income tax return was filed. The CRA uses this data to assess eligibility.
- Log into your CRA My Account to confirm if you received GST credit in January 2023.
- Update your direct deposit information if needed to ensure prompt payment.
- Wait for July 5, 2023 to see the payment reflected in your account.
If you believe you’re eligible but haven’t received the payment, you may contact CRA after July 5 to inquire or amend your tax information.
Responses from economists and experts
While the rebate has been praised for its targeted nature, experts suggest it remains a short-term solution amid long-term affordability issues.
“It’s a helpful step — it won’t solve inflation, but it does offer cushion for households feeling the squeeze.”
— RBC Economist (placeholder)
“The design leverages existing tax infrastructure, which keeps administrative costs low and ensures timely delivery.”
— Public Policy Expert (placeholder)
Looking ahead: Will there be more relief?
While no new top-up payments have been officially announced beyond July 2023, the government has indicated that it remains open to future supports tied to inflation and budget conditions. Economists underline the importance of addressing root causes such as food prices, housing, and transportation instead of relying solely on one-time rebates.
Short FAQs
What is the Grocery Rebate?
The Grocery Rebate is a one-time top-up of the GST credit to help low- and modest-income Canadians cope with rising grocery prices and inflation pressures.
Who qualifies for the Grocery Rebate?
Anyone who received the GST/HST credit based on their 2021 tax return is eligible. No new application is required.
When will the Grocery Rebate be paid?
Payments are scheduled for July 5, 2023, and will be delivered either via direct deposit or cheque along with the regular GST credit.
How much money will I get?
Individuals could receive up to $234; couples with two children may receive up to $467. Exact amounts vary by income and household size.
Do I need to apply separately for this rebate?
No. The payment is automatic for those eligible under the 2021 tax year.
Will the payment affect other benefits?
No, the rebate is non-taxable and will not impact other federal or provincial benefit programs.