441-01669 (Taxation)

Since taking office in 2015, the government's focus has been investing in the middle class, growing the economy, strengthening Canada's social safety net, and making life more affordable for Canadians. Key measures include:

• Reversed the Conservative policy and restored the age of eligibility for Old Age Security (OAS) and Guaranteed Income Supplement (GIS) to 65, from 67, preventing 100,000 seniors aged 65 and 66 from plunging into severe poverty each year.

• Increasing support for families and low-income workers through programs such as the Canada Child Benefit and the Canada Workers Benefit, which have helped lift over 1 million Canadians out of poverty since 2015.
• Across Canada reduction of fees for regulated childcare of 50 percent on average, with six provinces and territories reducing childcare fees to $10 a day or less by April 2, 2023. In Saskatchewan, this amounts to an estimated savings of up to $6,900 per child.
• Increasing the GIS top up benefit for low-income single seniors, enhancing the GIS earnings exemption, and increasing Old Age Security for approximately 3.3 million Canadians in July 2022.
• Reducing taxes for the middle class from 22 percent to 20.5 percent, while raising taxes on the wealthiest Canadians. 
• Increasing the basic personal amount – i.e., the basic amount of income that Canadians can earn before paying federal income tax – to $15,000, while phasing out the benefits of the increased basic personal amount for wealthy individuals.

In addition, the Government of Canada has provided targeted inflation relief to Canadians struggling with the impacts of global inflation, which has made the cost of living a real challenge. This includes direct, tax-free payments of up to $1,300 per child over two years to eligible families to cover dental expenses for their children under 12 and a doubling of the GST credit in the fall of 2022.

Furthermore, the new onetime Grocery Rebate provided targeted inflation relief for 11 million low- and modest-income Canadians and families who need it most, with up to an extra $467 for eligible couples with two children; and up to an extra $234 for single Canadians without children. The Grocery Rebate was delivered to eligible Canadians on July 5, 2023, by direct deposit or cheque through the Canada Revenue Agency.

Climate action is critical to Canada’s long-term- health and economic prosperity. Pollution pricing is widely recognized as effective and the most efficient means of reducing greenhouse gas emissions, which is why the Government of Canada has made sure that it is no longer free to pollute in Canada.

The federal price on pollution is revenue neutral for the government of Canada; the direct proceeds from the federal pollution pricing system remain in the province or territory where they are collected. Put simply, every dollar collected from the pollution price is returned.

In provinces where the federal fuel charge applies, 90 percent of direct proceeds are returned to residents of those provinces through Climate Action Incentive (CAI) payments. Most households receive more in CAI payments than the costs they face from the federal price on pollution, with low- and middle-income households benefitting the most, on average. The other 10 percent is used to support small and medium sized businesses and Indigenous groups.  Proceeds relating specifically to the use of natural gas and propane by farmers are returned directly to farmers via a refundable tax credit.

This year, through quarterly payments, a family of four will receive: $1,544 in Alberta, $1,056 in Manitoba, $976 in Ontario, and $1,360 in Saskatchewan. Starting in July 2023 when federal carbon pricing begins to apply in Atlantic Canada, a family of four will receive 3 quarterly payments totaling: $984 in Newfoundland and Labrador, $744 in Nova Scotia, $720 in Price Edward Island, and $552 in New Brunswick (double payment in October). Residents of small and rural communities are entitled to a 10 per cent supplement beyond the base amount. Future years will contain 4 quarterly payments.

On October 26, 2023, the government announced its intent to double the CAI rural top-up, from 10 to 20 percent, with increased payments to rural residents starting in April 2024. It also announced a proposed temporary, three-year pause of the fuel charge on deliveries of light fuel oil exclusively for use in providing heat to a home or building until the end of 2026-27.

The government will continue to take action to support the middle class and make life more affordable for Canadians.