Get ready for a grocery rebate supplement! The Extra GST Payment is coming to lend a hand to Canadian families and individuals during these times. The Canada Revenue Agency is stepping in to help with the rising cost of living, particularly with inflation on the rise. This additional payment will assist taxpayers with those extra expenses. Keep an eye out for relief on various taxes, including income tax and property tax, tied to the Consumer Price Index.
Paying taxes is a part of life for Canadians, and one of them is the Goods and Services Tax (GST), which applies to goods and services across the country. Starting January 2024, the Federal Government of Canada has bumped up the GST to 9%. Registered individuals or businesses will need to file their GST returns to claim exemptions and receive assistance.
Payment Amount
The Extra GST Payment you receive hinges on your family’s adjusted net income and the number of kids under 18 in your household. Singles eligible for the payment will get $496, while married or common-law couples will receive $650. Plus, each child under 18 gets $171.
However, if your annual net income tops $35,000, the base amount decreases by 2% for every dollar over that threshold. So, the higher your income, the smaller your Extra GST Payment.
Keep in mind, federal GST rates also vary by province, and the government has announced increases based on these provincial differences.
The grocery rebate assistance, part of the federal budget, targets inflation relief. These Extra GST Payments are here to assist low-income taxpayers and their families in tackling the rising cost of living and inflation. To qualify, taxpayers must file their income tax return with the Canada Revenue Agency.
Your eligibility depends on meeting the federal income threshold, which considers your income and family size. Subtract your child care benefits and disability saving plan income from your adjusted family net income. If you’re registered and qualify under the Canadian Act, you’ll receive a portion of the payment based on your income. The aim of the Extra GST Payment is to ease families’ living expenses, with the government imposing taxes on GST for taxable, exempt, and zero-rated supplies.
