Parliament approves one-time GST credit top-up, payments expected this spring

Canadians who receive the federal GST credit will see an additional one-time payment this spring after Parliament passed legislation accelerating changes to the benefit. The Canada Groceries and Essentials Benefit received royal assent after clearing the Senate, following earlier approval in the House of Commons.

According to the federal Finance Department, the measure will deliver a top-up worth 50 per cent of a recipient’s regular GST credit. Officials say payments will be issued as early as possible this spring to eligible low and modest income households.

In addition to the one-time boost, the legislation increases the base value of the GST credit by 25 per cent for five years beginning in July. The government estimates more than 12 million Canadians will benefit. It says a family of four could receive up to $1,890 this year when the one-time payment and the enhanced credit are combined, followed by roughly $1,400 annually over the next four years.

The bill moved quickly through Parliament with support from multiple parties. The Conservatives backed its passage in the House of Commons, while describing the measure as a temporary response to affordability pressures rather than a long-term fix.

The GST credit is designed to offset sales taxes for lower income Canadians and is paid quarterly. With inflation and food prices remaining a concern for many households, the federal government has framed the temporary increase as part of broader efforts to address cost of living challenges.