Ahead of the Holiday and festive time, the Canadian government has proposed the Working Canadians Rebate worth $250 and a tax break for Canadians. The government intends to relieve the financial burden on the citizens with such a proposal.
Federal Government $250 Payment
On 21 November 2024, the Liberal government proposed to bring a two-month tax break or GST/HST holiday ahead of the holiday time along with the Working Canadians Rebate for the Canadians. The government said the rebates will be tax-free to support low-income families in saving their money.
As per the government estimate, the rebate will provide benefits to 18.7 million working citizens. The rebate will be based on the individual’s net income. Once the legislation is passed in the Parliament, the Canada Revenue Agency will work on delivering the payment to the eligible workers who fulfill the rebate eligibility.
Who will receive the Federal Government’s $250 Rebate?
As per the announcement, the Canadian government has revealed the eligibility criteria for the Working Canadians Rebate. So, Canadians who meet the below eligibility criteria can expect the rebate if the legislation is passed in the Parliament:
- You have worked in the tax year 2023 and earned an individual net income of less than $150,000 in the tax year.
- You have filed the federal tax return for the 2023 tax year before 31 Dec 2024, and claimed the following:
- You have claimed a tax credit for Employment Insurance or QPIP (Quebec Parental Insurance Plan premiums on self-employment earnings/ employment wages; or
- You have claimed Canada Pension Plan or QPIP contributions tax credit on self-employment, employment earnings; or
- You have reported income in your 2023 tax return from QPIP or EI benefits
- You should be alive till 01 April 2025 to receive the rebate
- You must be a Canadian resident on 31 March 2025
- You have not ceased in prison for or another place for the crime for 90 days or more before 01 April 2025.
When & How will Canadians receive a Federal Government $250 Payment?
As per the announcement, the government plans to process the rebate to eligible Canadians in March – June 2025 in early spring, if the legislation is passed. The government has said the Canada Revenue Agency has already started its work to deliver the rebate worth $250 to eligible working individuals.
According to the information released for now, the eligible workers will receive the payment automatically based on their 2023 return and other conditions through payment methods, direct deposit, or paper checks.
What’s the response of people and opposition on Canadian government holiday proposals and rebates?
Canadians welcome the GST/HST tax break and rebate for the working class as it will support them in surviving with the rising cost of living and save some money from the tax-free rebate. However, the conservatives have questioned the Liberal’s move as they think they are trying to attract voters.
The Liberals have left behind the Conservatives in public opinion, it seems the citizens are not happy with a liberal government. The current government is trying to make voters happy before the federal election, which is going to be held in October 2025.
Some say the high inflation and fuel prices have put pressure on the government to make this easy and affordable for Canadians ahead of the holiday and festive time. The Conservative leader Poilievre has even said the government announced the tax break after NDP promised a permanent GST break if they win the election.
Impact of $250 Working Canadians Rebate
With the new benefits and rebate announcement, let’s see how this will impact the Canadians and government treasury:
- The $250 federal payment for working class earning less than $150,000 is tax-free which will offer some relief to the recipients as they can save some money and have additional support.
- The federal payment of $250 for 18.7 million Canadians could cost around $4.7 billion to the government, which many analysts think can raise inflation.
- The financial assistance will boost the purchasing power of the citizens and help them save money which will eventually keep the economy going towards growth.
The Canadian government has to pass legislation in the Parliament to enact the rebate and tax break, where the Liberals would need the support of the opposition. The NDP leader Jasneet Singh has said they may support the legislation as people deserve the tax break, so Canadians can expect the rebate and tax break soon.
