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grocery rebate

Canadian grocery prices are getting costlier, and Montrealers are certainly feeling it. In fact, it has become scarily expensive to be able to feed a family in Montreal nowadays, making it clear that saving where you can, when you can is a top priority for many.

A study done by the Montreal Diet Dispensary indicated how food prices have increased significantly for many essential products, with staples like pasta and white flour experiencing staggering jumps in cost. Over the past year, pasta prices surged by a remarkable 116%, while white flour saw an even more alarming increase of 225%.

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A rebate intended to offset the rising cost of groceries will grant eligible single Canadians up to $234 and families up to $467 when it goes out on Wednesday, July 5. Seniors are eligible for up to $225.

The Grocery Rebate is a one-time payment intended for inflation relief, targeting "11 million low- and modest-income Canadians and families who need it most," according to a government press release.

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Government money, here we come! The 2023 Canadian federal budget includes plenty of money for government things, but it also provides a little relief from the inflation and cost-of-living crises that have been shaking the country all year. One such move is the new Grocery Rebate. Let's get into it.

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After a year of teasing new Tax-Free First-Home Savings Accounts, the federal government has announced the option will finally launch on April 1, 2023. The benefits are pretty straightforward. Aspiring first-time homebuyers will be able to put money into their accounts and deduct those contributions from their income tax. Then, when they're ready to actually purchase a home, they can take money from the account without paying taxes on the withdrawal, either. Earned interest is tax-free, too.

There are limits though.

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The Canadian federal government's 2023 budget includes a one-time boost to the Goods and Services Tax Credit (GST Credit or GSTC) that it's terming the "Grocery Rebate." This rebate would provide a maximum of $153 per adult, plus $81 per child and $81 for single adults without children, adding up to a maximum of $234 per qualifying Canadian adult living alone.

The new Grocery Rebate is intended to "help make up for higher prices at the checkout counter — without adding fuel to the fire of inflation," according to Finance Minister Chrystia Freeland.

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CBC News reports the Government of Canada will announce a new payment for residents to counter high grocery costs due to inflation. The payment, which CBC's unnamed government source called a "grocery rebate," would reportedly mean an extra $234 for eligible individuals living alone and $467 for a family of four.

Details are few, but the CBC source says the rebate will be tied to the GST Credit, which gives back some of the money low-income residents pay in federal sales tax. Taxpayers are automatically considered for the GST Credit when they file. For payments in the 2022-2023 period, a given household had to have an income under $39,826 in 2021 to receive maximum credit amounts.

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