Automatic tax-filing for low-income Canadians coming in 2025 budget: Carney
The federal government will file taxes automatically for low-income Canadians, making them eligible for government benefits, Prime Minister Mark Carney said in a statement on Friday.
The Canada Revenue Agency (CRA) will begin automatic tax filing for about 1 million people in 2027 (for the 2026 tax year), Carney’s office said, adding that the number is expected to reach 5.5 million by 2028.
This will “ensure they receive government benefits they qualify for, such as the GST/HST credit, the Canada child benefit, the Canada Disability Benefit,” Carney’s office said.
The measures will be rolled out in the upcoming federal budget, scheduled to be tabled on Nov. 4.
“Millions of lower income Canadians don’t file their taxes, either because they don’t have the resources to do so, or because they think that their income is too low for it to matter,” Carney said.
“That means, too often, the people who most need benefits often don’t get them.”
Ottawa had considered the move in 2023, even putting the federal government’s intention into the 2024 fall economic statement document.
Among the measures announced was legislation to allow the CRA to automatically file a tax return on behalf of some lower-income Canadians, starting as early as the 2025 tax year.
The budget will also make the National School Food Program permanent to provide meals for up to 400,000 children, he added.
“This program ensures kids are fed healthy meals at school and saves families with two children $800 per year on groceries. By making it permanent, we will work with provinces, territories, and Indigenous partners to expand the program into more schools across Canada,” the statement added.
The Canada Strong Pass, which offers free or discounted admission to some of the country’s most iconic places, will be brought back for the holidays and summer next year, Carney said. The pass expired on Sept. 2 this year.
“With the Canada Strong Pass, Canadians can visit national, provincial, and territorial museums, historic sites, parks, and travel by rail for free or at a reduced cost,” Carney said.
Canadians calling in to the CRA helpline have been suffering long wait times.
This prompted Finance Minister François-Philippe Champagne to set a 100-day timeline for the CRA to fix call centre delays in September, even as Ottawa plans spending cuts across the public service.
The federal union representing CRA workers has started an online campaign denouncing staffing cuts at the agency, calling it the “Canada on Hold” campaign.
Marc Brière, national president of the Union of Taxation Employees, says the CRA has cut almost 10,000 jobs since May 2024 and the campaign looks to highlight the impact of cuts on the delivery of services to taxpayers and businesses.
–with files from Canadian Press
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