New tax benefits announced both Federally and Provincially to help Canadians with the rising cost of living – updates.

November 28, 2022

Both the Federal and Provincial governments have announced new tax benefits to help Canadians cope with the rising cost of living. In all instances, Canadians will have to have filed their 2021 tax return.

A breakdown of the affordability tax credits can be found below. They can also be easily accessed by clicking the links below:

Federal Affordability Benefits

British Columbia Affordability Measures

Saskatchewan Affordability Tax Credit

Manitoba Family Affordability Benefit

Newfoundland & Labrador One-time Cost of Living Tax Credit

PEI Inflationary Support Payment

Quebec Refundable Cost of Living Tax Credit

Alberta Inflation Relief Benefit

New Federal Affordability Benefits.

A temporary doubling of the GST/HST Credit in a lump sum.

The amounts used to calculate the GST/HST Credit will be temporarily doubled for a period of six months.

But instead of being added to the quarterly instalments people typically receive, the additional amount will be paid in a lump-sum, sometime before the end of 2022.

The amounts that recipients can expect to receive if they are fully eligible are shown in the table below.

Not everyone receives a GST/HST credit payment. People must earn under a certain threshold to receive this, and that’s still the case with the double-up payment.

Regular quarterly payments for July & October 2022 and January & April 2023Additional Lump-Sum Payment in fall of 2022
Basic Credit$76.50$153
Amount for an Eligible Dependant$76.50$153
Qualified Child$40.25$80.50
Single Supplement$40.25$80.50

Taxpayers will not need to apply for the additional payment but will need to have filed a 2021 tax return in order to get both their regular GST/HST cheque and the additional supplement.

One-time top-up of the Canada Housing Benefit.

A one-time top-up to the Canada Housing Benefit program will provide a tax-free payment of $500 for low-income renters with adjusted net income of less than $20,000 for individuals or $35,000 for families.

Taxpayers will need to have filed a 2021 tax return but will not receive the payment automatically. They will need to apply to the CRA and attest that they are paying at least 30% of their adjusted net income on shelter and paying rent for their own primary residence in Canada.

To confirm eligibility, they’ll also need to provide:

  • The address of the rental property,
  • The amount of rent they paid in 2022
  • The landlord’s contact information
  • Consent to the CRA verifying their information

The payment will be launched by the end of the year.*

The payment will not affect eligibility for other federal income-tested benefits, such as the Canada Workers Benefit, the Canada Child Benefit, the GST/HST Credit, and the Guaranteed Income Supplement.

Canada Dental Benefit.

The Canada Dental Benefit will provide payments of up to $650 per child for children under 12 to cover anticipated dental expenses. The payments are contingent on the family’s adjusted net income. Per child, that equals:

  • $650 for income under $70,000
  • $390 for income between $70,000-$79,999
  • $260 for income between $80,000-$89,999

Parents or guardians of eligible children will need to prove that:

  • Their child does not have access to private dental care coverage
  • They will incur dental care expenses for which they will use the benefit
  • They understand that they may need to provide documentation later to verify the expenses incurred

Health Canada and the CRA are working on an application platform that would deliver payments in a timely fashion. The CRA will start receiving applications for the Canada Dental Benefit on December 1, 2022, for expenses incurred retroactive to October 1, 2022. It’s important to note that the Canada Dental Benefit is not taxable.

British Columbia Affordability Measures.

The BC government is providing a one-time increase to the Climate Action tax credit in October 2022, and an increase to the BC Family Benefit for the first three months of 2023. More details on the increases are below.

BC Climate Action Credit.

  • For October only, the Climate Action Tax Credit will be increased by a maximum additional $164 per adult and $41 per child. This means a family of two adults and two children can receive up to an additional $410.
Regular quarterly payments for July & October 2022 and January & April 2023October payment with increase factored in
Spouse or common-law partner$193.50$357.50
First child in a single parent family$193.50$357.50
All other children$56.50$97.50
  • The thresholds for receiving the credit remain the same – taxpayers start to get phased out at $36,901 for singles with no children and $42,051 for families (including single parent families), except the phase-out rates have been reduced so that more people will receive the October payment.
Thresholds at which the credit is fully phased out for regular quarterly paymentsThresholds at which the credit is fully phased out for the enhanced October payment
Married or common-law with no children$62,401$128,001
Married or common-law with one child$65,226$139,026
Married or common-law with two children$68,051$150,051
Married or common-law with three children$70,876$161,076
Single parent with one child$62,401$128,001
Single parent with two children$65,226$139,026
Single parent with three children$68,051$150,051

BC Family Benefit.

  • Formally known as the BC Child Opportunity Benefit, the BC Family Benefit will increase by an additional $58.33 per child for January, February, and March 2023.
  • In order to get the regular payments of the Climate Action Tax Credit and the BC Family Benefit, taxpayers need to have filed a 2021 tax return. The federal government also recently created new and increased benefits, so filing means not only the BC refundable credits but also some increases to federal benefits like GST/HST.
Regular quarterly payments for July 2022 to June 2023 benefit periodMonthly payments for January to March 2023
First child$133.33$191.66
Second child$83.33$141.67
Third child$66.67$125.00

Saskatchewan Affordability Tax Credit.

The Saskatchewan government is giving its residents a $500 tax credit, which will be paid this fall to all Saskatchewan residents who will be 18 years or older on December 31, 2022, and who have filed a 2021 tax return as a resident of the province. This is part of a four-point plan to assist residents of that province with the rising cost of living. The tax credit is not income-based and is per individual (as in, it’s not just one per household, but rather a cheque for everyone within the house who qualifies), so most of the province can rejoice in this great news!

Their 2021 tax return must be filed by October 31, 2022, in order to get this credit.

The plan includes other components besides the $500 payment:

  • The removal of fitness and gym memberships and some recreational activities from the planned PST expansion on admissions, entertainment, and recreation, which will take effect in October.
  • Extension of the temporary 0% small business tax rate retroactive to July 1, 2022 and delaying the restoration of the rate to 2.0% to July 1, 2024. It was originally set to increase back to 1% on July 1.
  • The retirement of up to $1 billion in operating debt made possible by the higher-than-projected surplus.

Taxpayers who have moved should contact the SATC administration centre to determine their eligibility.

Manitoba Family Affordability Benefit.

Though this technically happened in September, it’s worth sharing the news now that the Manitoba government has also announced the introduction of a new Family Affordability Benefit to help low-income seniors and families with children to cope with the rising cost of living. It will consist of:

  • A payment of $250 for the first child under 18 and $200 for each additional child for families with net income less than $175,000 as reported on their 2021 tax return; and
  • A payment of $300 for seniors with family income less than $40,000 who claimed the Education Property Tax Credit for Seniors on their 2021 income tax return.

Cheques will start to be mailed out in late September to the address indicated on the taxpayer’s 2021 tax return. Clients who have changed mailing addresses since then will need to update their information on a government web portal (which is not yet available but should be soon).

Newfoundland & Labrador One-time Cost of Living Tax Credit.

The Newfoundland & Labrador government will be giving a one-time payment of up to $500 to all residents of the province who are 18 years or older as of December 31, 2022 who filed a 2021 tax return with an adjusted net income of $125,000 or less. Those with adjusted net income of less than $100,000 will receive $500, and those with adjusted net income between $100,000 and $125,000 will receive a partial payment between $250 and $500.

There is no need to apply for this credit, and cheques will be mailed out before the end of 2022. Residents have until December 31, 2022 to file their 2021 tax return or they will miss out on the one-time benefit.

PEI Inflationary Support Payment.

In November, the PEI government announced a one-time inflationary support payment to assist residents of PEI with the rising costs of living. It will be paid with the January 5, 2023 payment of the PEI Sales Tax Credit and will require eligible taxpayers to have filed a 2021 income tax return in order to receive it.

The payment will consist of:

  • $500 for single taxpayers with adjusted net income of up to $100,000, with taxpayers with adjusted net income between $100,000 and approximately $125,000 receiving a partial payment; and
  • $1,000 for couples and single parents with adjusted family net income of up to $100,000, with taxpayers with adjusted net income between $100,000 and $145,000 receiving a partial payment.

The eligibility requirements for the PEI Sales Tax Credit are the same as those for the GST/HST Credit. Taxpayers will therefore have to be at least 19 at the beginning of January in order to receive the inflationary support payment, unless they have a spouse or common-law partner or are the parent of a child who lived with them.

Québec New Refundable Cost of Living Tax Credit.

The Québec government announced the payment of a new refundable credit to help taxpayers deal with the rising cost of living. The credit will be paid automatically at the beginning of December 2022 if the 2021 return was filed by November 9, 2022. If the 2021 return is filed after November 9, 2022 but before June 30, 2023, the credit will be paid when the return is processed by Revenu Québec.

The credit depends on a person’s net income for 2021, which can be found on the Québec return line 275.

Net Income for 2021Amount of the credit
$50,000 or less$600
$50,000 to $54,000$400 to $599.99 (reduced by 5% of your income over $50,000)
$54,000 to $100,000$400
$100,000 to $104,000$0 to $399.99 (reduced by 10% of your income over $100,000)

There are some conditions to receiving the credit. You must:

  • Be a resident of Québec as of December 31, 2021,
  • Be at least 18 years of age on December 31, 2022,
  • File your 2021 Québec tax return by June 30, 2023,
  • Have a 2021 net income of less than $104,000.

It’s also important to note that taxpayers who died before September 1, 2022 are not eligible.

Alberta Inflation Relief Benefit.

Alberta has introduced an inflation relief benefit for seniors and families with children under 18 years old, to be paid in $100 instalments over 6 months, to a total of $600.

H&R Block Tax Experts are always here to help you figure out how tax changes will affect your return and look forward to helping you. Choose from one of four convenient ways to file: File in an Office, Drop-off at an Office, Remote Tax Expert, or Do It Yourself Tax Software.

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