Federal government starts rolling out grocery rebate payments | CBC News (2024)

CBC News

· Posted: Jul 05, 2023 4:00 AM EDT | Last Updated: July 5, 2023

Grocery rebate payments from the federal government areexpected to start landing in eligible Canadians' bank accounts today.

The government has billed the one-time payment as targeted inflation relief for some 11 million low- and modest-income households.

It repeats the temporary boost to the GST rebate the government offered last year to address growing cost-of-living concerns. Those eligible for the GST rebate as of January 2023 will be eligible for the one-time top up; no application is required.

The payment amounts are based on net incomefor the 2021 tax year.Single Canadians withoutchildren are no longer eligible for the rebate if they earn more than $49,166 a year, while families with four children continue to receive the payments until they earn more than $64,946.

The federal government has published a chart detailing the Grocery Rebate income cut-offs on its website.

Eligible families of four could receive up to $628by direct deposit or cheque from the Canada Revenue Agency. Single people without children will get up to $234. The rates depend on income and the number of children in a household.

The GST rebate is issued four times a year, the 2023 payment dates areJan.5,April 5,July 5, 2023 and Oct.5.

The Canada Revenue Agency has said some Canadians may be eligible for the July GST rebate but not for the grocery rebate, and vice versa. That's because the grocery rebate is calculated using 2021 income tax returns, while the GST rebate is based on 2022 tax returns.

The amount Canadians will get from the GSTrebate annually depends on the level of family income and make up of the family. The federal government has published a chart detailing the different GST payments.

WATCH |What you need to know about the grocery rebate:

Speaking at a press conference Wednesday, Finance Minister Chrystia Freeland acknowledged that the one-time payment won't fully address the rising cost of living. Shesaid it will still have an impact for those who need it most.

"[The rebate] is real, meaningful support, and for the people who need it the most it's going to make a difference," she said. "Is it going to cover everything? No, and we have to be honest about that."

Freeland added that offering more financial help to more Canadians likely would only push inflationhigher.

"It was really important for us not to make things worse," she said.

Canada's inflation rate droppedto 3.4 per cent in May, Statistics Canada said last week. That's the lowest the country's inflation rate has been since June 2021.

Despite the overall slowdown, the price of food continued to rise at a fast pace in May. Grocery prices went upalmost nine per cent on a year-over-year basis— barely lower than the 9.1 per cent rateclocked in Apriland still almost three times the overall inflation rate.

WATCH | The grocery rebate promised in the budget is here. CBC's About That looks at how it will work and who gets it:

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