Budget 2023: Making Life More Affordable

In Budget 2023, the government is introducing new, targeted inflation relief supports for Canadians. This new support has been carefully designed to avoid exacerbating inflation.

  • Through the new Grocery Rebate, Budget 2023 delivers targeted inflation relief for 11 million low- and modest-income Canadians and families who need it most, with up to an extra $467 for eligible couples with two children; an extra $234 for single Canadians without children; and an extra $225 for seniors, on average.
  • Cracking down on hidden junk fees, such as higher telecom roaming charges, event and concert fees, excessive baggage fees, and unjustified shipping and freight fees.
  • Cracking down on predatory lending by proposing to lower the criminal rate of interest.
  • Lowering credit card transaction fees for small businesses, while also protecting reward points for Canadians offered by Canada’s large banks.
  • Automatic tax filing for more low-income Canadians, to ensure they can easily file their tax returns in order to receive the benefits they are entitled to.
  • Helping post-secondary students to afford their education and pursue their dreams by increasing the Canada Student Grants and raising the interest-free Canada Student Loan limit.
  • Helping young Canadians save for their first home by launching the new Tax-Free First Home Savings Account on April 1, 2023.

Since 2015, the federal government has made significant investments to support Canadians and make life more affordable.

These have included:

  • One-time inflation relief payments to about 11 million low- and modest-income Canadians, worth up to $467 for a couple with two children, and up to $234 for a single Canadian without children.
  • An enhanced Canada Workers Benefit, which means families could receive up to $2,461 this year, and a single Canadian without children could receive up to $1,428.
  • Direct, tax-free payments of up to $1,300 per child over two years to eligible families to cover dental expenses for their children under 12.
  • A tax-free payment of $500 to help low-income people who are struggling with the cost of rent.
  • A ten per cent increase in Old Age Security (OAS) payments for seniors who are 75 and older, which is providing over $800 in new supports to full pensioners in the first year.
  • The tax-free Canada Child Benefit, to support about 3.5 million families annually, with up to $6,997 per child under the age of six, and up to $5,903 per child aged six through 17 this year.
  • Fighting climate change while making life more affordable with a federal price on pollution that puts more money back in the pockets of eight out of every ten Canadians in the provinces where it applies.
  • Reducing taxes for middle class Canadians while raising them on the wealthiest one per cent.
  • A nation-wide affordable Early Learning and Child Care system, with six provinces and territories providing regulated child care for an average of just $10-a-day or less by April 2, 2023,—significantly ahead of schedule. All other provinces and territories remain on track to achieve $10-a-day child care by 2026.

In addition, important benefits like the Canada Child Benefit, Canada Pension Plan, OAS, and the Guaranteed Income Supplement all keep pace with inflation.

Source: budget.canada.ca