GST Extra Payment; Dental & Housing Benefits

In September, the federal government announced some new and additional benefits for lower income Canadians.

There will be an extra GST payment made before the end of the year. We still do not know when exactly it will be.

The intention of the extra payment is to support those most affected by inflation; the government is proposing to double the GST Credit for six months, which would deliver $2.5 billion in additional targeted support to current GST credit recipients.

The normal GST quarterly payment will be made on October 8 2022 and the next regular payment will be January 2023; and the extra GST payment will be made likely before Christmas.

GST Basics

The Goods and Services Tax (GST) Credit helps offset the financial impact of the GST for low- and modest-income individuals and families. The Credit is paid quarterly in January, April, July, and October. The GST credit is recalculated each July after the previous calendar year’s taxes are processed by CRA Canada Revenue Agency.

The total annual value of the GST Credit depends on family size and income. For the July 2022 through April 2023 benefit year, eligible people can receive the annual amount up to:

  • $467 for singles without children;
  • $612 for married or common-law partners;
  • $612 for single parents; plus
  • $161 for each child under the age of 19.

To ensure the GST Credit is targeted to those who need it most, those with family net income of less than $39,826 in 2021 receive the full credit amount. Above this income level, the GST credit amount is gradually lowered as income increases. The full phasing out depends on family type – for instance, it is fully phased out at about $49,200 for a single person without children, and at about $58,500 for a couple with two children.

Extra GST Credit

The proposed extra GST Credit amounts will be paid to all current recipients through the existing GST Credit system as a one-time, lump-sum payment before the end of the year. Recipients do not need to apply for the additional payment

It is estimated that 11 million individuals and families will benefit from this additional support, including about nine million single people and almost two million couples. In total, this represents more than half of Canadian seniors.

Canada Dental Benefit

We are still waiting for a few more details on this new benefit, but it is definitely good news for low-income families.

The federal government announced a new dental benefit to children under 12 who do not have dental insurance. Starting October 1 2022 up to $650 per year per child will be available to pay for dental care service. Family income needs to be under $90,000. This is the first stage of benefits as the government develops a comprehensive dental care program.

There will be some type of application and reimbursement process, but we do not have any information yet.

Save your dental receipts for service starting October 1 2022! Most of you already do for income tax purposes, but make sure you keep your dental invoices and proof of payment for dental service for your children under 12; for future reimbursement by the federal government.

Canada Housing Benefit

The third announcement was a $500 Canada Housing Benefit for renters who are struggling with the cost of housing. The process is unknown at this time.

This benefit will be available to individuals with income under $20,000 and families with income under $35,000, who pay at least 30% of their income on rent.

There will likely be an application form required with full information about your landlord. Your landlord should have been providing you receipts for the amount of rent you paid; and the landlord should have been reporting the income on their own tax returns.

As more information about the dental plan and the housing benefit are known, we will be sure to share with our faithful readers.

Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact Ste Anne Tax Service at 204.422.6631 (phone or text!) or 36 Dawson Road in Ste Anne (near Co-op) or