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Canadians getting first GST credit payment of the year today

ByIsabelle Docto

New year, more money: Canadians are getting their first GST credit payments of 2025 today. The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment. According to the government, this credit aims to help families with low and modest incomes offset the taxes they pay. If you’re eligible, you’ll see extra cash in your bank account on Friday, January 3. Who’s eligible for the payment? The government says you’re generally eligible for the payment if you’re at least 19 years old and a Canadian resident for income tax purposes a month before the Canada Revenue Agency (CRA) makes the payment and at the beginning of the month. If you are under 19 years old, the government says you must meet at least one of the following conditions during the same period: You have (or had) a spouse or common-law partner You are (or were) a parent and live (or lived) with your child According to the government, parents in a shared custody situation may be eligible for half of the credit for that child. Additionally, if your income is equal to or exceeds the amounts below, you or your family won’t be eligible for the credit. Government of Canada How much will you get from the GST credit? According to the government, you could get up to: $519 if you are single $680 if you are married or have a common-law partner $179 for each child under the age of 19 Here are some examples of things you could spend this credit on. You don’t need to apply for the credit because you’re automatically considered for it when you file your taxes. In 2022, Ottawa doubled the GST credit for six months during the height of inflation. There are other ways you might get more money from the government this year. From the Canada Child Benefit to the Canada Carbon Rebate, check out the full list here.

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Canada’s GST holiday started Dec 14th. Here’s what you should know

ByIsabelle Docto

Canada’s GST holiday is here. In November, Prime Minister Justin Trudeau announced the two-month GST cut on groceries and other items heading into the busy and costly gift-giving season. “In just a few days, essential items will be tax-free in Canada,” Trudeau shared on Tuesday. “Takeout for dinner. Your morning coffee. Diapers and winter snow pants for your kids. All tax-free for the next two months.” In just a few days, essential items will be tax-free in Canada. Takeout for dinner. Your morning coffee. Diapers and winter snow pants for your kids. All tax-free for the next two months. That’s going to make life cost a little less. — Justin Trudeau (@JustinTrudeau) December 10, 2024 Some of the highlights from the list of products include groceries, beer and wine, restaurant meals (dine-in, takeout, or delivery), essential childcare items, and even Christmas trees. You can find the full list of items eligible for the GST cut here. The tax break started on Saturday, December 14 and will end on February 15. The government estimates that the policy will provide $1.6 billion in federal tax relief. Canadians are grappling with unaffordable housing and high food costs, so much so that this international student has resorted to living in his car instead of renting an apartment. Many Canadians are also skipping meals or cutting back on groceries because they can’t afford food. If you’re wondering how much this could actually shave off your grocery bill, Daily Hive calculated the estimated savings here. Trudeau not providing “substantial” relief This measure comes after the NDP vowed to eliminate the GST from everyday costs like heating, cell phone bills, internet, groceries and children’s needs. The Liberal government’s tax break does not apply to monthly bills. NDP Leader Jagmeet Singh issued a statement after the initial announcement, saying the Liberal government’s decision to pause the GST is in response to their demands. “The NDP is delivering a winter tax holiday to Canadians. The prime minister’s office just informed us that he’s caving to our Tax-Free-Essentials campaign — partly,” said Singh. He added that the policy is “far from the substantial and permanent relief” the party is pushing for. “As usual, the Liberals are letting people down with their choice to make this a short-term tax holiday on only some items,” stated Singh. Despite this, the NDP voted for the GST break. Singh said the party would continue to campaign hard to scrap the tax on daily essentials and monthly bills permanently. Opposition says GST move a “tax trick” Conservative Party Leader Pierre Poilievre also responded to Trudeau’s GST holiday, calling it a “two-month, temporary tax trick.” Poilievre noted that this would not “make up for the permanent quadrupling carbon tax on heat, housing, food, and fuel, and all to save Justin’s job and Jagmeet’s pension.” He added that his party is calling for alternative solutions, like permanently axing the carbon tax and taking GST off of new homes.

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GST relief announcement generates mixed reaction in B.C.

ByAmy Judd

While Canadians no doubt welcome the announcement that the federal government is giving most residents a GST break over the holidays, B.C.’s local small business community has concerns about how this will work during the busy season. “Any time the government wants to cut taxes, that’s a good thing,” Dan Kelly, president, CEO and chair of the Board of Governors of the Canadian Federation of Independent Business told Global News. “At the same time, this comes with a whole bunch of administrative complexity and questions and uncertainty that small business owners will be grappling with.” 1:17 Reaction in B.C. to temporary tax break, $250 rebate cheque Kelly said some businesses will have to reprogram their point of sale machines, twice and navigating the list of products that are part of the exemption could be confusing. Story continues below advertisement “We’re already getting questions about which products are in or out,” he added. “And then, of course, there is the administrative process that most small business owners do themselves. They try to adjust their point-of-sale machines to apply or take off taxes, depending on what is in place.” Get daily National news Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day. On Thursday, the federal government announced it will introduce legislation in Parliament to provide for a two-month GST and HST break for groceries and holiday essentials. If passed, the exemption would last from Dec. 14, 2024 to Feb. 15, 2025. Some of the goods that would qualify include children’s clothing, footwear, diapers, car seats, print newspapers, books, Christmas trees, food or beverages including alcoholic beverages, carbonated beverages, candies, chips, granola products, fruit bars and more. Here is a full list. Trending Now “Will it have a big impact? No, it won’t. Will it have a little impact? Yes, it will,” Ian Tostenston with the BC Restaurant and Food Services Association told Global News. 2:19 Federal government launches multi-billion dollar affordability programs In a statement, Restaurants Canada said it is pleased by the announcement as more than half of restaurants are operating at a loss or just breaking even, up from 12 per cent pre-pandemic. Story continues below advertisement “Today’s announcement restores some much-needed hope to our industry and we are optimistic it will translate to increased spending at local restaurants across the country,” the organization said in a statement. “Today’s announcement by the Prime Minister means that more Canadians will be able to celebrate with loved ones at a restaurant, have lunch with colleagues or treat themselves to a morning pastry on their way to work.” &copy 2024 Global News, a division of Corus Entertainment Inc.