The government is providing more financial support to eligible Canadians, with an increased Goods and Services Tax (GST) payment scheduled for this week.
This quarterly tax-free payment aims to assist individuals and families with low to moderate incomes in managing the GST or Harmonized Sales Tax (HST) they pay.
The Canada Revenue Agency (CRA) is set to deposit the next payment on Friday, July 4, which will include a 2.7% increase over the previous amount.
What is the GST/HST Credit?
The GST/HST credit is a payment issued by the CRA to help offset the cost of sales tax for low-income Canadians. It is provided on a quarterly basis, with the last payment made on April 4. This upcoming payment marks the second installment of the year.
The goal of this payment is to ease the financial burden on those who may struggle with the taxes they pay on everyday goods and services.
Are You Eligible for the GST/HST Credit?
Eligibility for the GST/HST credit depends on a few key factors. Generally, you must be:
- At least 19 years old
- A Canadian resident for tax purposes a month before the CRA issues the payment
However, young Canadians (under 19 years old) may also qualify if they meet at least one of the following conditions:
- They have (or had) a spouse or common-law partner
- They are (or were) a parent living with their child
In cases of shared custody, parents may be eligible for half the credit for each child, as per the government’s guidelines.
Eligibility is also determined by your family’s net income, meaning those with higher earnings may receive a reduced or no payment.
How Much Can You Expect to Receive?
The amount you receive from the GST/HST credit is determined by your adjusted net income. With the upcoming increase, eligible Canadians could receive the following amounts:
- $533 for a single individual
- $533 if you’re married or living with a common-law partner
- $184 for each child under 19
In most cases, you do not need to apply for the credit, as it is automatically determined based on your tax filing.
If you don’t receive the credit on Friday, wait 10 business days before contacting the CRA. The next quarterly payment is scheduled for October 3.
What Happened in 2022?
In 2022, the Canadian government doubled the GST credit payments for six months to help families cope with inflation. This temporary increase helped many Canadians manage rising prices during the peak of the economic downturn.
Other Government Benefits
Aside from the GST/HST credit, eligible Canadians may receive other financial support from the government. These additional benefits can help alleviate the ongoing pressures of inflation and high living costs.
With the 2.7% increase in the GST/HST credit, eligible Canadians will receive more financial support starting this week. The payment is automatically issued for most individuals, but it is essential to understand the eligibility criteria and payment amounts. With rising costs and economic challenges, this extra assistance provides crucial relief for families and individuals.
FAQs
Who qualifies for the GST/HST credit?
You qualify if you’re at least 19 years old, a Canadian resident for tax purposes, and meet specific income and family conditions.
How much will I receive from the GST/HST credit?
Eligible individuals may receive up to $533 if single, or $533 for those married or with a common-law partner, plus $184 for each child under 19.
What should I do if I don’t receive my GST payment on Friday?
Wait for 10 business days before contacting the CRA if your payment is delayed.