Canada Plans To Double The GST Credit For 6 Months — Here's How It Would Work
Eligible taxpayers could get more money back from the government.💰
Canada Revenue Agency headquarters in Ottawa.
As part of an effort to alleviate the impact of inflation, the Government of Canada has tabled legislation to double the Goods and Services Tax (GST) credit for eligible households.
The GST (TPS in French) credit is meant to "offset the financial impact" of the tax on "low and modest-income people and families," the Department of Finance explains online. In effect, those households get back some of the money they lose through the sales tax.
The idea is that by temporarily doubling the credit, the government can give targeted aid to "those most affected by inflation."
Eligibility for the credit depends on household/family size and income. Currently, families who had a net income of less than $39,826 in 2021 get the maximum value of the credit. The credit value decreases above that amount depending on beneficiaries' living situation. So, for example, the department explains, eligibility is capped at a net income of approximately $49,200 for single people with no children and $58,500 for a couple with two children.
Credit amounts also depend on family size and income. Maximum payments this year (as outlined online) are:
- "$467 for singles without children;
- "$612 for married or common-law partners;
- "$612 for single parents; plus
- "$161 for each child under the age of 19."
The proposed doubling of the GST credit would mean that parent gets another $386.50 for one of those six-month periods, for a total of $1,159.50.
In another example, a married couple with two children eligible for the maximum credit who would normally get $934 for the year ($612 plus $161 for each child) split between two credit periods would get an additional $467.
The measure is currently awaiting passage in Parliament and royal assent.