When the government tabled the 2023 federal budget earlier this year, one of the most talked-about measures was the so-called Grocery Rebate, designed to help offset the rising cost of food and other groceries in Canada.
Several months on, Canadians may be wondering when the Grocery Rebate payments will land in their bank accounts — or if they even qualify for the money at all.
There is some good news for those eagerly awaiting news on the rebate though, as on Wednesday, Bill C-46, also known as the Cost of Living Relief Act, No. 3, passed its second reading in the Senate.
The bill is now slated for an expedited finance committee study, raising hopes that the benefit could soon become a reality for those who need it.
According to a report from CTV News, Bill C-46 is on track to receive royal assent by May 12, marking the last step in the process of transforming the bill into law.
Although it would likely still take a number of weeks after this date for the payments to start rolling out to eligible Canadians, if approved, it does mean that the rebate would arrive in Canuck bank accounts before the end of the summer.
According to a spokesperson for Senator Marc Gold's office, per CTV, if the bill receives royal assent as planned, the Canada Revenue Agency will be able to start administering the Grocery Rebate as of July 1.
The budget says the Grocery Rebate will be distributed as a one-time payment from the CRA, with the aim of delivering the funds "as soon as possible" after the legislation has been passed.
The government plans to facilitate the payments via the Goods and Services Tax Credit (GST Credit) mechanism, which means eligible Canadians could receive the funds along with their next scheduled GST tax credit payment on July 5.
The one-time affordability measure is expected to benefit around 11 million low-and modest-income Canadians, although specific eligibility criteria are yet to be announced.
While the budget doesn't lay out income-based eligibility criteria, it does outline an example scenario in which a couple earning $38,000 per year and an individual earning $32,000 both receive the maximum amount.
Canadians could also look to the GST/HST credit for some insight into who may qualify for the maximum amount, as the Grocery Rebate will be administered via the GST/HST credit.
The GST benefit is reduced the higher an individual's income is, and is phased out entirely when an individual or household earns above a certain amount.
For single individuals with no children, this amount is $50,000, for couples without children it's $55,000 and for couples with four children or more, it's $65,000.
If the rebate is approved, it will offer up to $234 for a single person with no children, up to $467 for a couple with two children and around $225 for senior citizens.
The cost of implementing the Grocery Rebate is expected to be around $2.5 billion.
This article's cover image was used for illustrative purposes only.
