🛒Exciting News: Get Ready for the One-Time Grocery Rebate on July 5! 🎉

Beginning this Wednesday, July 5th, eligible Canadians will get a long-awaited one-time grocery rebate. This benefit was first announced as part of the federal budget for 2023, and it would be delivered to qualified persons by direct deposit or cheques issued by the Canada Revenue Agency (CRA).

The refund was unveiled in May, coinciding with the Royal Assent of Bill C-46, often known as the Cost of Living Act, which permitted the rebate. This bill includes a $2 billion top-up to the Canada Health Transfer (CHT) to resolve backlogs and improve wait times in healthcare services.

The food refund was designed to reimburse Canadians for the effects of inflation on grocery prices, although it can be used for any purpose. Couples with two children may earn up to $467 on average, single Canadians without children up to $234, and seniors up to $225.

Individuals and families that were eligible for the GST/HST credit in January 2023 and filed a tax return for 2021, even though they had no income to report, are not required to apply for the rebate.

The rebate will be issued in conjunction with the next quarterly GST/HST credit payment, which will be double the customary amount in January 2023. According to a recent CRA press release, the amount individuals receive will be computed based on their family circumstances in January 2023 and their 2021 adjusted family net income.

It is crucial to note, however, that while some Canadians may be eligible for both the Grocery Rebate and the July GST/HST credit, others may only be eligible for one of the two, depending on the calculation criteria. The Grocery Rebate is determined using the 2021 tax return, but the following quarterly GST/HST credit payment is calculated using the 2022 tax return in July 2023.

The rebate will be automatically paid to almost 11 million Canadians with a household income of $38,000 or less, as well as individuals earning $32,000 or less.

The CRA also clarifies that consumers who received a lump sum GST/HST credit payment in July 2022 will still be eligible for the food rebate.