$250 Payment Coming In Canada, GST Relief Effective Dec 14

Last Updated On 1 December 2024, 9:38 AM EST (Toronto Time)

New GST rebate: The Canadian government has announced a transformative initiative to support households during the holiday season and beyond.

Aimed at alleviating financial strain, the plan includes a Winter GST Holiday and a one-time $250 Working Canadians Rebate for eligible individuals in early 2025.

Here’s a breakdown of the Justin Trudeau GST announcement, the details of the GST relief Canada initiative, and what it means for Canadians.

Winter GST Holiday: Relief for Groceries and Holiday Essentials

Starting December 14, 2024, Canadians will enjoy a two-month GST/HST break on a wide range of holiday essentials.

This temporary tax relief, which extends to February 15, 2025, is designed to make groceries and other qualifying goods GST/HST-free, helping Canadians save at the checkout.

What Qualifies for the GST/HST Break?

The GST/HST will be removed on:

Groceries: Nearly all food and beverages for human consumption, including snacks, restaurant meals, and drinks.
Children’s Essentials: Clothing, footwear, diapers, and car seats.
Gifts and Toys: Select toys for children under 14, jigsaw puzzles, and video-game consoles.
Books and Newspapers: Printed books and certain print newspapers.
Decorative Trees: Natural or artificial Christmas trees.

Estimated Savings

The government estimates this tax relief will provide $1.6 billion in federal savings for Canadians.

A family spending $2,000 on qualifying items could save $100 in GST during the holiday season.
In HST provinces (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island), the same purchases could save families up to $260 due to the combined GST/HST removal.

How the GST Relief Works

At Checkout: Businesses are expected to remove GST/HST on qualifying purchases made between December 14, 2024, and February 15, 2025.
For Imports: Qualifying goods imported during this period will also benefit from the tax relief.

This temporary tax relief ensures real savings for Canadians on everyday essentials and holiday spending.

$250 Working Canadians Rebate in Early 2025

In addition to the Winter GST Holiday, the government will deliver a one-time $250 tax-free rebate to eligible Canadians in spring 2025.

Who Qualifies?

To be eligible, individuals must:

Work and Earn Income: Have earned up to $150,000 individual net income in 2023.
File Taxes: File their 2023 tax return by December 31, 2024.
Meet Contribution Criteria: Claim tax credits for CPP/QPP contributions, EI premiums, or report EI/QPIP income.
Residency Requirements: Be a Canadian resident on March 31, 2025.
Other Conditions: Not be incarcerated for at least 90 days before April 1, 2025, and not be deceased on April 1, 2025.

Delivery Details

Payments will be made automatically via direct deposit or cheque by the Canada Revenue Agency (CRA).
Approximately 18.7 million Canadians are expected to receive this rebate.

Why These Measures Matter

The GST holiday and rebate aim to address affordability by directly putting more money in Canadians’ pockets. Together, these measures:

Provide immediate relief during the high-spending holiday season.
Offer targeted support to Canadian workers in early 2025.
Address inflationary pressures and rising costs of living.

These steps underscore the government’s commitment to ensuring that Canadians have the resources they need to manage rising expenses.

Canadians are getting a tax break. Starting December 14, we’re pausing GST and HST for two months to make groceries, kids clothes, and other essentials tax-free.
— Justin Trudeau (@JustinTrudeau) November 21, 2024

FAQs

What is the Winter GST Holiday?

The Winter GST Holiday is a temporary tax break from December 14, 2024, to February 15, 2025, eliminating GST/HST on groceries and holiday essentials.

What are qualifying goods under the GST holiday?

Qualifying goods include groceries, children’s clothing and footwear, printed books, Christmas trees, select toys, and more.

How much can families save?

Families spending $2,000 on qualifying goods could save $100 in GST or up to $260 in provinces where HST applies.

Who is eligible for the $250 Working Canadians Rebate?

Canadians who worked in 2023, earned up to $150,000 individual net income, and meet the CRA’s requirements will qualify.

How will I receive the rebate?

The CRA will deliver the rebate via direct deposit or cheque in spring 2025.

Kamal Deep Singh, RCIC

Kamal Deep Singh, RCIC (Regulated Canadian Immigration Consultant) licensed by CICC (formerly known as ICCRC) with member number R708618. He brings extensive knowledge of immigration law and new changes to rapidly evolving IRCC.