Government Announces Temporary GST/HST Relief for Consumers: 11/26/2024

November 26, 2024

Notice from CRA: Please see backgrounder for more information on the exempt items.

Government Announces Temporary GST/HST Relief and Working Canadians Rebate for the Holiday Season

The Prime Minister, Justin Trudeau, today announced plans to provide targeted Goods and Services Tax/Harmonized Sales Tax (GST/HST) relief and the Working Canadians Rebate, a one-time cost of living assistance payment to make life more affordable for Canadians over the holiday season.
The government intends to introduce legislation that would provide for a GST/HST break for a temporary period from December 14, 2024, to February 15, 2025. Qualifying items include:

Prepared foods, including vegetable trays, pre-made salads, and sandwiches
Restaurants, including dine-ins, takeout, or delivery
Children’s clothing, footwear, car seats, and diapers
Certain toys such as board games, dolls, and video-game consoles
Print newspapers and books
Christmas trees or similar decorative trees
Snacks, including chips, candy, and granola bars
Beer, wine, cider, and pre-mixed alcoholic beverages below 7 per cent ABV

Although these proposed changes are subject to parliamentary approval, consistent with standard practice, starting December 14, 2024, the Canada Revenue Agency (CRA) will administer this GST/HST relief based on the proposed provisions once tabled in parliament. A backgrounder with detailed information on the qualifying goods accompanies today's announcement.
In addition, the proposed legislation includes the Working Canadians Rebate, a one-time payment of $250 to approximately 18.7 million Canadian workers. To be eligible, individuals must:

Have filed their 2023 tax return on or before December 31, 2024 and reported an individual net income of up to $150,000 and;
- claimed tax credits for the Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) contributions on employment or self-employment earnings OR
- claimed tax credits for Employment Insurance (EI) / Quebec Parental Insurance Plan (QPIP) premiums on employment or self-employment earnings OR
- reported income from EI or QPIP benefits;
Have been a resident of Canada on December 31, 2023 and are a resident on March 31, 2025;
Not be incarcerated for a period of at least 90 days immediately prior to April 1, 2025; and,
not be deceased on April 1, 2025.

The delivery of payments is planned to start in spring of 2025. Further details on the Working Canadians Rebate are available in a backgrounder associated with today’s announcement.
More information on this initiative will be provided in the coming days. Questions related to the proposed legislation can be directed to Finance Canada. The CRA is working to provide additional resources like web content and more detailed guidance ensuring that businesses are fully prepared to apply the GST/HST relief correctly.

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