More money in your pocket

From: Department of Finance Canada

News release

November 25, 2024 - Ottawa, Ontario - Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, alongside the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant, and the Honourable Rechie Valdez, Minister of Small Business, announced progress delivering new action to put more money in the pockets of Canadians and small businesses.

First, the Deputy Prime Minister and Minister of Finance laid out the details of the draft legislation to deliver the federal government’s tax break for all Canadians. Starting December 14, the GST/HST will be removed on groceries and other holiday essentials. This new tax break will make essentially all groceries, including restaurant meals and prepared foods, tax-free through February 15, 2025. Specifically, the GST/HST will not apply to:

  • Prepared foods, including vegetable trays, pre-made meals and salads, and sandwiches;
  • Restaurant meals, whether dine-in, takeout, or delivery;
  • Snacks, including chips, candy, and granola bars;
  • Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV;
  • Children’s clothing and footwear, car seats, and diapers;
  • Children’s toys, such as board games, dolls, and video game consoles;
  • Books, print newspapers, and puzzles for all ages; and,
  • Christmas trees.

Second, the Deputy Prime Minister and Minister of Finance laid out the details of the draft legislation to deliver the new $250 Working Canadians Rebate. In early spring 2025, Canadians who worked in 2023 and earned up to $150,000 will receive a $250 payment—either through a direct deposit in their bank account or cheque in their mailbox. The federal government is putting money directly into the pockets of the middle class, of those who have worked so hard to beat inflation. The Working Canadians Rebate will give 18.7 million Canadians, including an estimated 965,000 working seniors, the extra support to buy what they need.

Third, the Minister of Small Business announced that eligible small- and medium-business owners will receive tax-free Canada Carbon Rebate for Small Businesses payments early. Starting today, November 25, direct deposits from the Canada Revenue Agency (CRA) will begin appearing in small businesses’ bank accounts. For businesses not signed up for direct deposit, the CRA has cut your cheques and put them in the mail early, for delivery when possible. The Canada Carbon Rebate for Small Businesses is delivering over $2.5 billion in tax-free payments to about 600,000 Canadian businesses by returning fuel charge proceeds from 2019-20 through 2023-24. Small businesses that have filed their tax return and are in jurisdictions where the federal fuel charge applies will automatically receive direct deposits from the CRA.

Putting more money in the pockets of Canadians and small businesses is a key part of the federal government’s economic plan. This holiday season, a little bit more money in Canadians’ pockets will help them afford the things they need and save for the things they want.

Quotes

“The holiday season is when expenses are highest for many Canadians and their families—even with inflation back down to 2 per cent and interest rates being cut four times this year. With new tax relief on groceries and holiday expenses and the $250 Working Canadians Rebate, we are reducing costs for Canadians. This is about helping you celebrate with family and friends, and starting 2025 with a little extra money in your bank account.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Canada’s small- and medium-sized businesses keep main streets flourishing across the country, create jobs, and deliver the dream of entrepreneurship. It is essential that these businesses thrive so they can continue being the bedrock of our communities and our economy. And with Canada Carbon Rebates for Small Businesses now going out three weeks early, over $2.5 billion will be delivered to around 600,000 small- and medium-sized businesses to help them focus on what is most important: growing and investing in their business.”

– The Honourable Rechie Valdez, Minister of Small Business

“With the rising cost of living putting an extra burden on Canadians, the federal government is introducing a tax break on groceries and everyday essentials, plus a $250 rebate for working Canadians in the spring. These measures are going to provide middle-class families the relief they need and deserve by keeping more money in their pockets.”

– The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant

Quick facts

  • With the federal government’s tax break for all Canadians, the GST/HST would be fully relieved on the supply or importation of qualifying goods for a period beginning on December 14, 2024, and ending on February 15, 2025. Further details on the qualifying goods are available here.

    • A family spending $2,000 on qualifying goods, such as children’s clothing, shoes and toys, diapers, books, snacks for the house, or restaurant meals would pay $100 less GST over the two-month period.
    • In provinces where the HST will also be removed from qualifying goods (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), further savings would be realized. In Ontario, the same $2,000 basket of qualifying purchases realize HST savings of $260 over the two-month period.

  • Canadians who have claimed tax credits for Canada Pension Plan/Quebec Pension Plan contributions or for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those who reported income from EI or QPIP benefits, with individual net income below $150,000 in 2023, would be eligible for the Working Canadians Rebate. Eligible Canadians would begin receiving the payments starting in spring 2025. More information on the rebate is available here.

  • Businesses will not have to apply for the Canada Carbon Rebate for Small Businesses. The CRA will determine and automatically issue the rebate amounts to eligible businesses based on the payment rates of each applicable province for the corresponding fuel charge years, as specified by the Minister of Finance.

Associated links

Contacts

Media may contact:

Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Stay Connected

Page details

Date modified: