With the word sovereignty appearing over 100 times in Canada’s federal budget, the nearly $142 billion announced in new spending didn’t include any major direct benefits for older Canadians.
Boldly titled “Masters of Our Destiny,” the budget – which was tabled Thursday – includes a strategy to strengthen the Canadian economy and reduce reliance on the United States, including tax incentives, investment funds, infrastructure spending and faster project approvals for businesses operating and launching in Canada.
“With this budget, we will build the strongest economy in the G7. We will make life more affordable for Canadians,” Minister of Finance François-Philippe Champagne said in a speech to the House of Commons. “And we will defend our sovereignty while celebrating who we are.” To that end, major investments were also announced to bolster the country’s military and support Canada’s arts and culture.
While Canada’s OAS, GIS and CPP were left untouched, the budget did include some measures to assist Canadians – both young and old – with the climbing cost of groceries, utilities and caregiving. Here, we highlight five important spending measures.
Relief at the Checkout
The government is adding a one-time 50 per cent increase to the Canada Groceries and Essentials Benefit, which benefits lower income Canadians. The 2027 increase brings the quarterly payments up to $339 for a single person without children and up to $679 for a couple with two children.
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Expanded Eligibility for Caregivers Tax Credit
Starting in 2027, the Canada Caregiver Credit will become fully refundable, meaning Canadians with little or no income tax payable will benefit from the full credit, which pays up to $1,260 annually. Approximately 180,000 people will soon qualify for the benefit, including Canadians caring for aging parents, spouses and family members.
Investment in Home and Community Care
The budget has set aside $1.2 billion in the next two years for home and community care, providing more funding for programs that support Canadians who want to age in place. The funding will also go toward mental health services and addiction treatment.
Energy Rebates For Homeowners
If your furnace is due for replacement or you’re looking for a way to cut your energy bill, the return of a National Heat Pump Rebate Program is welcome news. The rebate, which will benefit up to 820,000 households, pays up to $10,000 for lower-income households, while other eligible homeowners can claim $2,000. It’s estimated that switching from oil, propane or electric resistance heating to a heat pump furnace could save up to $1,400 yearly in ene in rgy costs.
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Banking Protections
Hot on the heels of a federal report exposing Canada’s high and confusing banking fees, the budget includes plans to develop regulations requiring banks to provide consumers with a single clear annual statement of the fees paid on their chequing and savings accounts. These statements – which are already utilized by the European Union and the U.K. – not only address a lack of transparency across the major banks, but also gives Canadians the information needed to change financial institutions when fees climb too high.
Unfair banking practices continue to be on the federal government’s radar. Just this past March, a $10 cap on non-sufficient-funds fees took effect.
