New measures announced by the federal government will provide additional financial support to eligible newcomers in Canada. Individuals could receive up to an extra $417 this year and up to $167 annually over the next five years.
The Canada Groceries and Essentials Benefit, a refundable tax credit replacing the Goods and Services (GST) tax credit, will offer these increased benefits. This includes a 25% boost to the existing benefit for five years starting in July 2026, along with a one-time 50% increase for this year.
Under the new measures, a single eligible individual may receive a total benefit payment of up to $950 this year, up from $533, and up to $700 per year for the following four years. For a family of four, the maximum total benefit will be $1890 this year and $1400 annually for the next five years.
This benefit is accessible to individuals aged 19 and above who are Canadian residents for tax purposes and meet the annual net income threshold, set at $56,181 (CAD) for 2024. Net income eligibility varies based on family size and marital status.
To qualify for the benefit starting in July 2026, individuals must have filed their tax return for 2025. Quarterly payments are expected to commence in July 2026 for those who filed their 2025 tax returns.
Newcomers arriving after the latest tax filing season can register for the rebate by submitting form RC151 for the year they became Canadian residents for tax purposes.
This initiative is projected to benefit a larger percentage of newcomers compared to native-born Canadians, particularly international students, newly arrived temporary foreign workers, and permanent residents who are more likely to fall below the income threshold.
Designed to assist lower and modest-income taxpayers, the Canada Groceries and Essentials Benefit aims to help offset sales tax expenses on everyday purchases, succeeding the GST tax credit. Lower-income individuals are disproportionately impacted by consumption taxes like sales taxes due to their higher spending on daily living costs.