The impacts of the federal budget on your wallet
Juan Monino Getty Images The federal government tabled its budget on Tuesday, and several measures in it will impact your wallet.
Help to cope with inflation, dental care coverage plan, support for students… The federal government tabled its budget on Tuesday and several measures in it will have an impact on your wallet. Here are a few.
One-time amount for inflation
To help Canadians deal with the rising cost of living, Ottawa proposes to introduce a single amount “for groceries”, which is equivalent to a doubling of the tax credit payment for the goods and services tax (GST).
The people who will benefit from this measure are those who already receive the GST credit. How much could you receive if you qualify?
- A couple with two children could receive up to $467.
- A single person with no children could receive up to $234.
- And a senior would receive $225 on average.
When will this amount be paid? It all depends on when legislation is passed and signed to implement this measure – which will cost a total of $2.5 billion, and which will benefit 11 million low- and modest-income Canadian households.
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New dental coverage plan
In addition, Ottawa is proposing a new dental coverage plan.
This plan will be for Canadians who are not already covered by dental insurance and whose annual household income is less than $90,000. Additional specificity: those with a family income of less than $70,000 would not have to pay a copayment.
The plan, which is expected to be available by the end of 2023, “will be administered by Health Canada, with the support of a third-party benefit administrator.”
Details regarding eligibility requirements will be known later this year. However, Minister Freeland has already warned that the introduction of this plan will be done in “phases”.
According to the agreement between the New Democratic Party and the Liberal Party, children under 18, seniors and people with disabilities should have first access to the plan.
Amendment to the Registered Education Savings Plan
The federal government is also proposing to increase the withdrawal limits for the Registered Education Savings Plan. The limit applicable to certain RESP withdrawals would increase from $5,000 to $8,000 for full-time students and from $2,500 to $4,000 for part-time students.
Also new, divorced or separated parents could soon open a joint RESP for their children.
Additional help for students… If Quebec wants it
The budget also includes a series of measures to help students cope with the rising cost of living. Among other things, Ottawa is increasing Canadian scholarships by 40%, allowing full-time students to receive up to $4,200.
However, students from Quebec will not benefit from this improvement since the province administers its own loans and bursaries program. Ottawa nevertheless indicates that Quebec could receive federal funding to provide comparable assistance.
- Leave for miscarriage Ottawa is working on establishing a leave to help Canadians bereaved by a miscarriage. However, this would only apply to federally chartered employers. Details regarding the number of days off or the entry into force of this measure are not yet known.
- Hunt down unwanted costs The government announces that it will hunting down hidden charges (e.g. high telecommunications roaming charges or cloudy concert and hotel fees) by strengthening collaboration with regulators, provinces and territories.
- Lower credit card fees Government secured commitments from Visa and Mastercard “to lower fees for small businesses, while protecting Canadian consumer rewards points offered by major Canadian banks” . Will it lower consumer bills? The government hopes so, but cannot guarantee it.