On September 13, 2022, the Federal Government announced new measures as part of its Affordability Plan, with the intention of helping Canadians impacted by the effects of inflation.
Crowe MacKay's tax advisors provide a brief overview of the new measures. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
The Government proposes to double the GST Credit for six months. Single Canadians without children would receive up to an extra $234, couples with two children would receive up to an extra $467, and seniors would receive an extra $225 on average. The proposed extra GST Credit amounts would be paid to all current recipients through the existing GST Credit system as a one-time, lump-sum payment before the end of the year, pending Parliamentary approval and Royal Assent of enabling legislation. Recipients should file their 2021 tax return if they have not done so already to receive both the current GST Credit and the additional payment.
The Canada Workers Benefit has been increased to help support low-income workers. Those with modest income could receive up to $2,400 in support this year.
Those who are 75 years and older should see a 10% increase in their Old Age Security (OAS) which began in July 2022. In total, those eligible will see over $800 in new support to full pensioners over the first year.
With the Government of Canada’s new affordable, universal early learning and child care system, Canadian families should see their fees reduced by an average of 50% by the end of this year.
Families can see savings of up to $6,000 in British Columbia and $5,610 in Alberta.
Benefits that will be indexed to help keep the cost of living affordable include the Canada Child Benefit, the Goods and Services Tax Credit, the Canada Pension Plan, OAS, and the Guaranteed Income Supplement.
With the Government’s price on pollution, in the provinces where the federal system applies, a family of four will receive $1,079 in Alberta in Climate Action Incentive payments for the 2022/23 fuel charge year.
Eight out of ten families should receive additional Climate Action Incentive payments, getting more back than they will pay as a result of the price on pollution, with low-and middle-income families benefitting most.
Learn more about the Affordability Plan
Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article. Contact your Crowe MacKay advisor for more information.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.
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