There’s no denying that life in Canada has become more expensive for many families, especially over the last few years. From rising grocery bills to unexpected costs during the holidays, it’s clear that this has become a very real challenge for families across the country, especially as we approach the holiday season.
In response, the federal government has introduced two new measures to help ease the burden, which they’re referring to as a GST holiday. These include a two-month break from the Goods and Services Tax (GST) on certain everyday items and holiday favorites, as well as a one-time rebate of $250 for eligible Canadians.
So, what are the items on which you’ll receive these tax breaks? Is everyone eligible? And who qualifies for the one-time $250 rebate? Let’s explore, shall we?
When (and What) is the GST/HST Holiday?
Starting December 14th, 2024, Canadians will get a break at the checkout. For two months (ending on February 15th, 2025), the federal government will be waiving the GST (and HST in some provinces) on various goods.
So, What Items are Included?
Prepared foods like sandwiches, salads, and ready-to-eat meals
Restaurant meals, including dine-in, takeout, and delivery
Popular holiday treats like chocolate, chips and candy
Alcoholic beverages, like beer, wine, ciders, etc.
Children's items like clothing, footwear, car seats, diapers, etc.
Toys and games, including puzzles, video game consoles, and board games
Books and print newspapers
Christmas trees, both natural and artificial
How Much Can You Actually Save?
So, let’s do some math! If a family spends $2,000 on eligible goods during this “GST holiday,” they’ll save about $100 in taxes. In provinces where the HST applies, like Ontario and Nova Scotia, those savings become even higher, potentially reaching upwards of $260.
With this tax break, Canadians can make their everyday lives a little more affordable by saving on items they purchase frequently, especially during the holiday season. Anyone feeling the pressure of rising costs will appreciate this breather, even if it’s only a temporary one.
The Working Canadians Rebate
The GST/HST holiday isn’t the only thing Canadians are getting. The federal government is giving a one-time rebate to help ease a bit of the financial pressures for working Canadians. Known as the Working Canadians Rebate, this $250 payment is meant to provide extra support to middle-class Canadians and families grappling with rising costs.
Am I Eligible to Get the $250 Rebate?
In order to be eligible for this rebate, you need to have earned less than $150,000 in 2023. You also need to file your 2023 tax return by the end of the year to qualify for it.
When Will I Receive the $250 Rebate?
At the time of this blog being written, there was only a rough timeline given for spring 2025. We can probably assume that means either March or April of 2025. The Payments will be delivered directly by the Canada Revenue Agency (CRA) via direct deposit or cheque.
This rebate is aimed at giving middle-class Canadians a bit of financial relief during a challenging time. With inflation affecting everything from groceries to housing, this payment offers a small boost to help families keep up with expenses.
Limitations of the GST Holiday
The whole point of this GST/HST holiday is for Canadians to get some financial breathing room while dealing with inflation and rising costs. By eliminating GST on certain goods for two months and offering this one-time $250 rebate, the government is hoping to ease the financial strain many families face, especially with the holidays right around the corner.
Of course, there are limitations to consider. The GST holiday is temporary, lasting only until mid-February, and it doesn’t cover essentials like monthly bills. While helpful in the short term, these measures won’t just fix the ongoing challenges of affordability that so many Canadians face every day.
Some opposition parties, like the NDP, have proposed more permanent solutions. They suggest eliminating GST on essentials such as groceries, heating, and diapers year-round. While these ideas would mean more lasting relief for Canadians, they also raise questions about how the government would replace lost tax revenue.
For now, we can focus on the positive and the fact that this temporary relief is a welcome, if limited, step forward.
Quick Relief for Tough Times
The federal government’s GST holiday and $250 rebate were created to help Canadians tackle the high living costs, especially during the holiday season. The goal of offering short-term relief on everyday purchases and providing a financial boost to working households is to help make things a little more affordable, even if it’s just temporary.
Of course, there are a lot of mixed emotions and opinions surrounding this. While some see it as a helpful step, others argue they’re temporary solutions to long-term problems. Still, for Canadians feeling the squeeze, these measures can provide some much-needed financial relief for this time of year.
Either way, it’s definitely in your best interest to take advantage of the GST break before it ends on February 15, 2025, and of course, make sure you file your 2023 taxes on time to qualify for the rebate.
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