The recent enhancement to the GST rebate program by the Canadian government is about to commence with some Canadians expected to start receiving their one-time top-up payments from Friday onwards. Individuals who met the criteria for the quarterly GST credit for low- to middle-income earners in January are eligible for this additional benefit.
The top-up payment is an extra 50 percent on top of the total annual GST credit amount received by Canadians from July 2025 to June 2026. For instance, if someone received a total of $400 in GST/HST credit during that period, they can anticipate a one-time top-up payment of $200 as per the government.
To be eligible for this one-time payment, individuals must be Canadian residents for tax purposes and at least 19 years old, and they must have filed their 2024 tax return, which determines this year’s quarterly rebates. The income threshold for the GST rebate varies annually according to marital or common-law status and the presence of children.
Direct deposit enrollees can expect to see the top-up payment in their accounts starting on June 5. In cases where direct deposit is not set up, the Canada Revenue Agency will mail a cheque to the recipient.
The top-up payment is part of the transition to the Canada Groceries and Essentials Benefit by the federal government, intended to replace the GST credit while enhancing benefits for families and individuals over the next five years. Beginning in July, the quarterly rebate will increase by 25 percent for the subsequent five years, resulting in higher benefits for recipients.
These developments come amidst recent economic data indicating that the country has entered a technical recession, coupled with challenges in the job market and the escalating cost of living for Canadians. Statistics Canada reported a 0.1 percent decline in real GDP on an annualized basis in the first quarter, meeting the criteria for a technical recession. Additionally, Canada’s unemployment rate reached a six-month high in April, while the annual inflation rate rose to 2.8 percent due to surging gasoline prices.
