Federal Government Announces Canada Dental Benefit and Temporary GST Credit Increases
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The federal government has introduced its first two pieces of legislation for this Parliamentary sitting, which are aimed at financially supporting Canadians who need it most.
Bill C-30, the Cost of Living Relief Act, No. 1, would double the Goods and Services Tax Credit for six months. Doubling the GST credit would provide $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the tax credit, including about half of Canadian families with children and more than half of Canadian seniors. Single Canadians without children would receive up to an extra $234 and couples with two children would receive up to an extra $467 this year. Seniors would receive an extra $225 on average.
Bill C-31, the Cost of Living Relief Act, No. 2, would enact two important measures: the Canada Dental Benefit and a one-time top-up to the Canada Housing Benefit.
The Canada Dental Benefit would be provided to children under 12 who do not have access to dental insurance, starting this year. Direct payments totalling up to $1,300 per child over the next two years (up to $650 per year) would be provided for dental care services. This is the first stage of the government’s plan to deliver dental coverage for families with adjusted net income under $90,000, and will allow children under 12 to receive the dental care they need while the government works to develop a comprehensive national dental care program.
The one-time top-up to the Canada Housing Benefit would deliver a $500 payment to 1.8 million renters who are struggling with the cost of housing. This more than doubles the government’s Budget 2022 commitment, reaching twice as many Canadians as initially promised. The federal benefit will be available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for individuals, who pay at least 30 per cent of their adjusted net income on rent.