Ever considered a Grocery Rebate? The Canadian Government has introduced a 2023-2024 Grocery Rebate in Budget 2023 to aid eligible individuals amid rising food prices. Stay tuned for details on who qualifies and when it will be distributed.
Grocery Rebate 2023-2024
As grocery prices continue to surge by 9% compared to last year, despite a slowdown in Canada’s inflation rate to 3.4% in May, the lack of competition in the Canadian supermarket market has been identified by the Competition Bureau as a factor influencing these costs. To address the challenge of rising grocery prices, the Grocery Rebate was incorporated into the federal budget for 2023.
The purpose of introducing the Grocery Rebate by the Canadian government is to assist individuals with lower incomes in navigating the strain of escalating food prices. This new rebate, integrated into the 2023 federal budget, aims to provide relief for the rising cost of living.
To be eligible for the rebate, you need to qualify for the Goods and Service Tax and harmonized sales tax based on your 2021 tax return. Even if you have no income, filing a tax return is necessary to receive the Grocery Rebate for 2023-2024.
The rebate will be distributed quarterly, with the first payment issued on July 5, coinciding with the next quarterly GST/HST credit payment. Approximately 11 million eligible Canadians, with household earnings below or equal to $38,000 or individual income below $32,000, are set to receive the rebate.
How Much Grocery Rebate Will You Get?
The Canadian government has announced that the grocery rebate amount will be twice the sum of the GST/HST credit payment starting from January 2023. The calculation of the rebate is based on your family situation in 2023 and your adjusted family net income. The following payment breakdown provides a clearer view of the maximum amount you can expect to receive from the rebate.
Important to mention is that there is no application process for the Grocery Rebate. Eligible recipients will receive the payment through direct deposit or a cheque. To verify whether the rebate amount has been credited to their account, qualifying individuals must log in to their CRA account.
| Number of Children | Maximum Amount (Single) | Maximum Amount (Common Law Partner) |
| 0 | $234 | $306 |
| 1 | $387 | $387 |
| 2 | $467 | $467 |
| 3 | $548 | $548 |
| 4 | $628 | $628 |
If someone doesn’t receive their rebate, the CRA recommends waiting for at least ten days before reaching out to inquire about the rebate amount.
Who Will Get Canada Grocery Rebate?
To qualify for the grocery rebate, it’s essential to have filed a tax return for 2021, even if you have no earnings to report. Additionally, eligibility requires qualification to receive the GST/HST for January 2023, as the rebate amount will be distributed alongside it.
To be eligible for the rebate, your family income must not exceed $38,000, and for individual income, it must not exceed $32,000. Moreover, both you and your spouse must meet the eligibility criteria for the 2021 base year, which includes being 19 years of age, a Canadian resident for income tax purposes. If you’re under 19, you must either have or had a spouse, or have/are living with your children.
Not Eligible for Canada Grocery Rebate
Now, understanding the eligibility criteria, it’s equally important to be aware of the conditions that make one ineligible to receive the rebate amount.
You are ineligible if:
- You are not considered a Canadian resident for income tax purposes.
- You have served a term of at least 90 days in jail or a comparable institution.
- You are not obligated to pay taxes in Canada because you are an officer or servant of another country or a family member or employee of that person.
- The recipient is deceased.
When Will the Canada Grocery Rebate be Distributed?
The Canada Grocery Rebate is a single, one-time payment slated for distribution to eligible citizens in July 2023. This year’s rebate has already been distributed, and if the program continues, the next rebate is expected to be issued in the same month next year.
As mentioned earlier, eligible taxpayers don’t need to file any application to receive the refund; it will be automatically deposited into their CRA account. However, you can verify the credit status by checking your account.
If you have any lingering questions about the newly introduced rebate by the Canadian government, click here to visit the official site of the Canada Revenue Agency for more information.
