Help to deal with inflation, dental care coverage plan, support for students… The federal government tabled its budget on Tuesday and several measures contained therein will have an impact on your wallet. Here are a few.
Single amount for inflation
To help Canadians cope with the rising cost of living, Ottawa is proposing to introduce a single “grocery” amount, equivalent to a doubling of the tax credit payment for the goods and services (GST).
The people who will benefit from this measure are those who already receive the GST credit. How much could you receive if you qualify?
- A couple with two children could receive up to $467.
- A single person without children could receive up to $234.
- And a senior would receive $225 on average.
When will this amount be paid? It all depends on when the legislation will be passed and signed to implement this measure – the total cost of which is $2.5 billion, and which will benefit 11 million low- and modest-income Canadian households.
New Dental Coverage Plan
In addition, Ottawa is proposing a new plan for dental care coverage.
This plan will be for Canadians who are not already covered by dental insurance and whose annual household income is less than $90,000. Additional specificity: those whose family income is less than $70,000 would not have to pay a copayment.
The plan, which is expected to be available by the end of 2023, “will be administered by Health Canada, with support from a third-party benefit administrator.”
Details regarding eligibility requirements will be known later this year. However, Minister Freeland has already warned that the establishment of this regime would be done in “phases”.
According to the agreement between the New Democratic Party and the Liberal Party, children under 18, seniors and people with disabilities should be the first to have access to the plan.
Amendment to the Registered Education Savings Plan
The federal government is also proposing to increase the withdrawal limits for the Registered Education Savings Plan. The limit applicable to certain RESP withdrawals would increase from $5,000 to $8,000 for full-time students and from $2,500 to $4,000 for part-time students.
Another novelty, divorced or separated parents will soon be able to open a joint RESP for their children.
Additional help for students… If Quebec wants it
The budget also includes a series of measures to help students cope with the rising cost of living. Among other things, Ottawa is increasing Canadian scholarships by 40%, allowing full-time students to receive up to $4,200.
However, Quebec students will not benefit from this improvement since the province administers its own loans and bursaries program. Ottawa nevertheless indicates that Quebec could receive federal funding to provide comparable assistance.