Summary#

This bill temporarily increases the federal GST/HST credit for lower- and modest‑income Canadians. It adds a one‑time top‑up equal to 50% of a person’s annual GST/HST credit for the 2022-2023 benefit year, paid using 2021 tax return data (Bill Summary; Bill s. 122.5(4.2)). The government stated this is to give quick cost‑of‑living relief through the existing system.

• Doubles the GST/HST credit for six months by adding a lump‑sum top‑up equal to half of the annual credit (Bill Summary).
• Uses 2021 income to calculate eligibility and amount; no application needed if you filed your 2021 return (Bill s. 122.5(4.2)).
• Phases out the benefit at 15% of income over $39,826 (Bill s. 122.5(3.002)(B)).
• Shared‑custody parents split the top‑up according to set rules (Bill s. 122.5(3.03)).
• Government cost estimated at about CAD $2.5 billion, reaching about 11 million recipients (Department of Finance Backgrounder, September 2022; PBO, October 2022).

What it means for you#

• Households

  • If you already receive the GST/HST credit, you get an extra payment equal to 50% of your annual GST/HST credit for 2022-2023. This is on top of regular quarterly payments (Bill Summary; Bill s. 122.5(3.002)).
  • The amount depends on family status and income. The top‑up mirrors the same formula used for the GST/HST credit, including amounts for a spouse/partner and each child (Bill s. 122.5(3.002)(a)-(f)).
  • The credit begins to phase out when family net income exceeds $39,826, at a rate of 15% of income above that level (Bill s. 122.5(3.002)(B)).
  • You do not need to apply. Filing a 2021 tax return is required for payment. Late filers will receive it after they file (Bill s. 122.5(3.002), (4.2)).
  • Payment was delivered as a lump sum through the GST/HST credit system before the end of 2022 (Department of Finance Backgrounder, September 2022).

• Parents and caregivers

  • If you have children who qualify for the GST/HST credit, your top‑up is larger because it includes the dependent amounts used in the regular credit formula (Bill s. 122.5(3.002)(d)).
  • In shared custody, the one‑time top‑up is split between eligible parents under the shared‑custody rule (Bill s. 122.5(3.03)).

• Seniors

  • Seniors who receive the GST/HST credit get the same 50% top‑up based on their 2021 income and family status (Bill s. 122.5(3.002), (4.2)).

• Workers and students

  • Low- and modest‑income workers and students who qualify for the GST/HST credit receive the one‑time top‑up. Those whose 2021 income was too high will not (Bill s. 122.5(3.002), (4.2)).

• Businesses

  • No direct effect on businesses. This bill only changes a personal tax credit (Bill Summary).

Expenses#

Estimated net cost: CAD $2.5 billion (FY2022-2023).

• Government estimate: About $2.5 billion in one‑time cost, reaching about 11 million individuals and families (Department of Finance Backgrounder, September 2022).
• Independent estimate: Parliamentary Budget Officer estimated a similar one‑time fiscal cost in 2022-2023 (PBO, October 2022).

Proponents' View#

• Targets relief to lower- and modest‑income Canadians by using the existing GST/HST credit system, which already screens by income and family size (Bill s. 122.5(3.002); Department of Finance Backgrounder, September 2022).
• Quick delivery using CRA systems, with payments issued before the end of 2022 and no need to apply (Department of Finance Backgrounder, September 2022).
• Temporary design (a single top‑up equal to six months’ worth) provides near‑term help without creating a permanent program change (Bill Summary).
• Scales with need: larger families receive larger amounts because dependants count in the formula (Bill s. 122.5(3.002)(d)).
• Clear phase‑out: benefit declines by 15% of income above $39,826, focusing dollars on lower‑income households (Bill s. 122.5(3.002)(B)).

Opponents' View#

• Uses 2021 income to determine 2022-2023 payments, which may miss households whose income fell in 2022 and may pay households whose income rose (Bill s. 122.5(4.2)).
• One‑time payment provides only short‑term relief; there is no ongoing support beyond the 2022-2023 benefit year (Bill Summary).
• Fiscal cost of about $2.5 billion adds to the deficit in 2022-2023 (Department of Finance Backgrounder, September 2022; PBO, October 2022).
• Complex formula and shared‑custody rules can be hard for the public to understand, making it difficult to predict exact amounts without CRA calculations (Bill s. 122.5(3.002), (3.03)).
• Requires a filed 2021 tax return to receive the payment, which delays or prevents payment to eligible non‑filers until they file (Bill s. 122.5(3.002), (4.2)).