Canada's new one-time grocery discount: everything you need to know

Eva Homicio

Grocery store in Toronto

Grocery store in Toronto / ©, Dyllon Kidd

The Canadian federal government announced a one-time grocery rebate to offset the impact of inflation on the cost of groceries, set to be distributed as early as July 5th. 

This rebate is an integral part of the recently approved Bill C-46, the Cost of Living Act, and the recipients will be selected based on their income level and family size.

This financial relief will be delivered via direct deposit or cheque through the Canada Revenue Agency. 

The amount of the rebate varies based on the household setup: couples with two children will receive up to $467, single Canadians without children will get $234, and seniors will receive on average $225.

The Bill C-46 legislation, which received Royal Assent on Thursday, encompasses more than just the grocery rebate. It also includes a $2 billion Canada Health Transfer (CHT) top-up, aimed at reducing medical backlogs and wait times.

Introduced as a part of the 2023 federal budget, the grocery rebate aims to compensate Canadians for the higher grocery prices they've been experiencing due to inflation. 

However, the government has made it clear that the rebate money can be spent freely, without any specific restrictions.

Finance Minister Chrystia Freeland expressed her satisfaction with the unanimous approval of Bill C-46 by the House of Commons and its receiving of Royal Assent.

The government plans to issue the rebate automatically to about 11 million Canadians whose household income is $38,000 or less, as well as individuals earning $32,000 or less. 

There's no need for eligible recipients to apply for this rebate, as it will be delivered along with the July GST Credit payment. The only requirement is that recipients must have filed their 2021 tax return to receive the payment.

This initiative is a part of the broader strategy of the Canadian government to help citizens cope with the rising cost of living, while also taking steps to improve the healthcare system.

Earlier we reported: Crab price standoff: FFAW's final counter proposal to ASP

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