Most of us are likely to feel that the 2023 budget will not change anything in our lives. No program of the scope of the CELIAPP or the Canadian Dental Benefit, announced last year, will make an impression. Ottawa will, however, help those less fortunate to deal with inflation and other measures address a range of frustrations.
This one-time payment will be paid as soon as possible, we promise. Only low-income households that already receive the GST rebate will have to. There are 11 million in the country, out of 20 million.
A couple with two children can receive up to $467. A single person without children can expect up to $234. A parent who lives alone with their child could be entitled to a maximum of $387. Ottawa calculates that seniors will receive, on average, $225.
Of course, no one will make sure that this “grocery” amount is spent…in a grocery store. Money can pay for anything: clothes, phone bill, hairdresser. We are clearly in marketing here. In reality, it is a one-time increase in the GST credit, but announcing it that way would have been less eye-catching.
We can be ironic about the name of the measure, but it has the merit of being well targeted. Ottawa cannot be accused of spreading billions all over the place, a reproach repeatedly addressed to the Legault government. In the last year, Quebeckers earning $100,000 were entitled to $900, officially to deal with inflation.
The “grocery rebate” is also unlikely to fuel inflation significantly, as checks will only total $2.5 billion nationwide. In comparison, the sums paid by Quebec in April and December 2022 put 6.7 billion in the pockets of taxpayers.
With her third budget, Chrystia Freeland also tackles frustrations that everyone encounters at one time or another.
The Minister wishes, for example, that it is no longer necessary to buy a new charger each time you change your phone or tablet. To do this, it wants to force manufacturers of electronic devices to adopt a universal model. It would also make less waste. Canada hopes to emulate the European Union, which mandated USB-C charging ports by the end of 2024.
Ottawa also wants the goods we buy to be more easily repairable. Often, you have to resign yourself to throwing away your small appliances because spare parts are not available. Both from an environmental and financial point of view, this is absurd. Consultations on the right to repair will begin next summer.
To better protect travelers whose flight has been delayed or canceled, Ottawa will amend the law to strengthen the obligations of air carriers. The aim is to harmonize Canadian regulations with the approach of “the main international authorities”, which is more favorable to passengers. In addition, to appease the impatience of those who complain to the Canadian Transportation Agency, Ottawa will take the necessary steps to make the arbitration process more efficient. These actions were necessary. As I wrote recently, the delays in obtaining justice are endless, which undermines the credibility of the traveler protect program.
Students are not left out. Over the past 25 years, the price of post-secondary education has skyrocketed, especially when housing is part of the budget. However, the maximum amount that can be withdrawn from a Registered Education Savings Plan (RESP) has not changed during this period. Ottawa is therefore increasing the Educational Assistance Payment (EAP) withdrawal limit for full-time students from $5,000 to $8,000. For those studying part-time, the limit increases from $2,500 to $4,000. The EAP is made up of government grants and returns. This change will come into effect as soon as the budget is adopted.
Ottawa also wants to crack down on “undesirable”, “hidden” or “additional” fees imposed on consumers by a host of industries (cell phones, show ticket sales, air travel). To achieve this, some laws will be amended. It remains to be seen whether this will have consequences in Quebec, since the Consumer Protection Act already forces companies to post all-inclusive prices.
For their part, small business owners have been complaining for 20 years about the percentage of fees they pay to credit card issuers on each transaction. With the meteoric rise in the popularity of card payments, these “interchange fees” weigh on their profitability. Minister Freeland announced that she had reached an agreement with Mastercard and Visa to reduce bills for “90% of businesses that accept credit cards”. The reduction of their costs may reach 27%.
Small businesses will save $1 billion over five years, Ottawa predicts. Will consumers benefit? That’s the big question. Retailers have always argued that transaction fees end up being passed on to consumers. But it would be surprising if this announcement brought down retail prices significantly.