Legislation to put more money in your pocket receives Royal Assent

News release

December 12, 2024 - Ottawa, Ontario - Department of Finance Canada

Today, Bill C-78, the Tax Break for All Canadians Act received Royal Assent, making essentially all food and many holiday essentials tax-free for two months.

Specifically, this legislation removes the GST/HST on holiday essentials, like groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts, from December 14, 2024, until February 15, 2025.

During this period, the Tax Break for All Canadians Act will provide real relief at the cash register by making the following items tax-free:

  • 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, and cider;
  • 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 and similar decorative trees.

By effectively making purchases of these holiday essentials tax-free, the measure will put between $100 and $300 more in workers’ pockets on a basket of $2,000 in purchases over the next two months.

This pragmatic tax relief will make life easier for Canadians during the holiday season—when they tend to face higher than usual costs—and help workers start the new year with more money in their pockets.

Quotes

“Inflation is back down to 2 per cent and interest rates have been cut five times this year. At the same time, the holiday season is when expenses are highest for many Canadians and their families. Making essentially all food and many holiday essentials tax-free will leave Canadians with a little more money in their pockets—helping offset the cost of the things they need to celebrate the season with family and friends.”

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

Quick facts

  • The federal government’s tax break for all Canadians fully relieves the GST/HST 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 realize GST savings of $100 over the two-month period. 

  • In provinces where the provincial portion will be removed from qualifying goods (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), additional savings will be realized.  

    • For example, a $2,000 basket of qualifying purchases would realize HST savings of up to $260 in Ontario and up to $300 in Newfoundland and Labrador.
  • The government is focused on making life more affordable for Canadians, with actions that are already saving them thousands of dollars a year, including:

    • A new National School Food Program, with $1 billion over five years to provide meals for up to 400,000 more kids each year, ensuring all children have the food they need to have the best start in life, regardless of their family circumstances. The Program is expected to save the average participating family with two children $800 per year in grocery costs, with lower-income families benefitting the most.
    • More money through the Canada Child Benefit, to help with the costs of raising children and make a real difference in the lives of children in Canada. The Canada Child Benefit, which is providing up to nearly $8,000 per child in 2024-25, is indexed annually to keep up with the cost of living and has helped lift hundreds of thousands of children out of poverty since its launch in 2016.
    • Saving families up to $14,300 per child, per year, with the Canada-wide $10-a-day child care system, which has already cut fees for regulated child care to an average of $10-a-day or less in over half of all provinces and territories and by 50 per cent or more in all others.
    • Saving eligible Canadians about $730 per year with the Canadian Dental Care Plan, which is already available for children under 18, people with disabilities, and seniors, with family incomes under $90,000, because no one should have to choose between taking care of their teeth and putting food on the table.

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

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