Canadians struggling with unprecedented high grocery costs will receive much-needed support as part of a federal initiative set to launch this fall: the Grocery Rebate Program. The initiative is designed to blunt the impact of inflation on households, providing direct payments to millions of families and individuals.
Aid in Respite of Heightened Costs
Grocery inflation surpassing 6 percent previously has caused many Canadians to shift focus to essentials and make budget adjustments. The Grocery Rebate Program is designed to restore some of that purchasing power by offering payments in October and then quarterly thereafter. Eligible recipients will receive payments up to $467 for adults and $173 for children, providing some relief for the steepest inflationary hikes in over a decade.
Who Qualifies and How Much?
Eligibility is determined by the adjusted family net income (AFNI) from the 2024 tax year. The rebate is calculated on a sliding scale:
Households earning an AFNI of $35,000 or less receive the full rebate. Payments taper gradually for incomes up to $75,000, at which point they cease entirely.
No Separate Application Needed
The Canada Revenue Agency (CRA) will assess eligibility automatically through the 2024 tax returns. For the majority of taxpayers, no separate application will need to be lodged. Recipients will be notified either through mail or the CRA My Account portal. For individuals who do not file taxes, or their income is hovering near the threshold, there is a short online form that needs to be filled that verifies eligibility to claim the rebate.
Impact to the Economy
The CRA anticipates a significant increase in retail and consumer spending. This is primarily due to the expected injection of consumer spending from the rebate, amounting to 7 billion dollars a year. Experts do believe that the rebate will help alleviate the financial burden of food costs, and deal with heightened inflation levels by stabilizing consumer spending in other sectors.
What to Expect Moving Forward
The Grocery Rebate Program is a response to Canada`s increasingly volatile food prices. It is intended to help low-income families. Following the reviews in 2025, there can be further changes in the amount of the rebate keeping inflation and federal budget in mind.