The federal government is proposing on average $225 in grocery rebates for seniors and for those with children, they could see maybe up to $467 in grocery rebates through tax programs. And the question is, is that really enough there in the latest federal government budget, there is support for about $3.5 million for 3.5 million families annually through tax-free Canada child benefits with families this year receiving up to almost $7,000. Are there also is they talking about increasing Old Age Security? Benefits for those 75 and older and that’s providing more than $800 in additional support for those who are on a pension. The budget also, says it is about reducing fees for child’s childcare by about 50% Delivering regulated childcare costs, on average of just about $10 a day by 2026. and strengthening Canada’s pension plan is on the list for the budget. Enhancing Canada’s workers’ benefits for the lowest paid and most often essential workers is also on the list. They’re talking about crackdowns on junk fees, which the budget is supposed to intend to work with regulatory agencies provinces and territories to reduce junk fees for Canadians. Overcharges in telecom roaming charges added concert fees excessive baggage fees and unjustified shipping fees. The budget is talking about a lot of crackdowns on things, but is it really enough? Is it really going to curb the rising cost of living that is the debate that was on the Parliament floor with the 2023 budget? What is really affordable for Canadians? Is the government really in tune with what is affordable? They have what they call making life more affordable. But is it really affordable? There are also more programs to make a more affordable place to call home. They’re highlighting introducing a two-year ban on non-resident non-Canadian purchase of residential property. They’re also talking about introducing a 1% annual under-usage tax on the value of non-resident non-Canadian-owned properties and introducing a new tax-free first home savings account to allow Canadians to save up to $40,000 towards a house worth $40,000 towards a house in Vancouver. When the average price of a house of a freestanding home is over a million dollars and the average cost of a townhome is almost $300,000 is that really enough to help a new family buy a home? There they’re talking about crackdowns on profits and from flipping homes. Doubling first-time buyer tax credits to provide up to $1,500 to direct support. Is the government really aware of what the costs are? Are they or are they proposing things that they think should work with research and due diligence? What is really going on with the budget is the question of the day. When we look closer at some of the news feeds are coming around the budget for Chrystia Freeland’s office and the finance minister

An Affordable Place to Call Home

To ensure every Canadian has a safe and affordable place to call home, Budget 2022 and the 2022 Fall Economic Statement announced significant investments to make housing more affordable from coast to coast to coast. Budget 2023 proposes new measures to build on this important progress.

Over the past year, the federal government has taken significant steps towards making housing more affordable for Canadians. These have included:

Introducing a two-year ban on non-resident, non-Canadians purchasing residential property to help curb speculation and ensure that houses are used as homes for Canadians to live in, rather than as financial assets for foreign investors;
Introducing a one per cent annual underused housing tax on the value of non-resident, non-Canadian owned residential property that is vacant or underused;
Introducing a new Tax-Free First Home Savings Account to allow Canadians to save up to $40,000, tax-free, to help buy their first home;
Making sure that profits from flipping properties held for less than 12 months are taxed fully and fairly;
Doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers to offset closing costs involved in buying a first home;
Introducing a new, refundable Multigenerational Home Renovation Tax Credit, which will provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability, starting in 2023;
Applying the Goods and Services Tax/Harmonized Sales Tax to all assignment sales of newly constructed or substantially renovated residential housing, to help address speculative trading in the housing market;
Launching a new $4 billion Housing Accelerator Fund to remove barriers and incentivize housing supply growth, with the goal of creating at least 100,000 net new homes across Canada;
Launching a $200 million stream under the Affordable Housing Innovation Fund to develop and scale up rent-to-own projects;
Launching a third round of the Rapid Housing Initiative, which is providing $1.5 billion to create 4,500 new affordable housing units for Canadians in severe housing need, with 25 per cent of investments going towards housing projects targeted towards women;
Delivering over $500 million towards the government’s goal of ending chronic homelessness, through Reaching Home, Canada’s Homelessness Strategy; and,
Delivering a top-up to the Canada Housing Benefit in December 2022, which provided low-income renters with a $500 payment to help with the cost of housing.

Launching the New Tax-Free First Home Savings Account

In Budget 2022, the government committed to introducing a Tax-Free First Home Savings Account—a new registered plan to give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions will be tax-deductible, and withdrawals to purchase a first home—including from investment income—will be non-taxable, like a Tax-Free Savings Account (TFSA). Tax-free in; tax-free out.

Budget 2023 delivers on this commitment and announces that financial institutions will be able to start offering the Tax-Free First Home Savings Account to Canadians as of April 1, 2023.

A Code of Conduct to Protect Canadians with Existing Mortgages

Elevated interest rates have made it harder for some Canadians to make their mortgage payments, particularly for those with variable rate mortgages.

That is why the federal government, through the Financial Consumer Agency of Canada, is publishing a guideline to protect Canadians with mortgages who are facing exceptional circumstances. Specifically, the government is taking steps to ensure that federally regulated financial institutions provide Canadians with fair and equitable access to relief measures that are appropriate for the circumstances they are facing, including by extending amortizations, adjusting payment schedules, or authorizing lump-sum payments. Existing mortgage regulations may also allow lenders to provide a temporary mortgage amortization extension—even past 25 years.

This guideline will ensure that Canadians are treated fairly and have equitable access to relief, without facing unnecessary penalties, internal bank fees, or interest charges, which will help more Canadians afford the impact of elevated interest rates.

Building More Affordable Housing

The federal government is taking action to ensure that Canada’s National Housing Strategy programs can continue to deliver new affordable homes for Canadians.

Budget 2023 announces the government’s intention to support the reallocation of funding from the National Housing Co-Investment Fund’s repair stream to its new construction stream, as needed, to boost the construction of new affordable homes for the Canadians who need them most.

Investing in an Urban, Rural, and Northern Indigenous Housing Strategy

Access to safe and affordable housing is critical to improving health and social outcomes, and to ensuring a better future for Indigenous communities and children. That is why the government has committed more than $6.7 billion since 2015 to support housing in Indigenous communities, including $300 million in Budget 2022 towards an Urban, Rural, and Northern Indigenous Housing Strategy, which is currently being co-developed with Indigenous partners.

Budget 2023 proposes to commit an additional $4 billion to Canada Mortgage and Housing Corporation to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.

Making Life More Affordable

A New Grocery Rebate

Groceries are more expensive today, and for many Canadians, higher prices on essential goods are causing undue stress. In Budget 2023, the federal government is providing new, targeted inflation relief to the Canadians hardest hit by rising food prices.

Budget 2023 proposes to introduce a one-time Grocery Rebate, providing $2.5 billion in targeted inflation relief for 11 million low- and modest-income Canadians and families. The Grocery Rebate will provide eligible couples with two children with up to an extra $467; single Canadians without children with up to an extra $234; and seniors with an extra $225 on average.

Cracking Down on Junk Fees

In Budget 2023, the federal government is taking action to crack down on junk fees, including unexpected, hidden, and additional fees, to continue to ensure businesses are transparent with prices, and to make life more affordable for Canadians.

Budget 2023 announces the government’s intention to work with regulatory agencies, provinces, and territories to reduce junk fees for Canadians. This could include higher telecom roaming charges, event and concert fees, excessive baggage fees, and unjustified shipping and freight fees.

Cracking Down on Predatory Lending

Predatory lenders can take advantage of some of the most vulnerable people in our communities, including low-income Canadians, newcomers, and seniors—often by offering very high interest rate loans. Budget 2023 announces the government’s intention to:

Introduce changes to the Criminal Code to lower the criminal rate of interest from the equivalent of 47 per cent APR (annual percentage rate) to 35 per cent APR, in line with the lowest cap among provinces, in Quebec. The government will also launch consultations on whether the criminal rate of interest should be further reduced.
Adjust the Criminal Code’s payday lending exemption to require payday lenders to charge no more than $14 per $100 borrowed, in line with the lowest cap among provinces, in Newfoundland and Labrador.

Supporting Canadians’ Right to Repair

When it comes to broken appliances or devices, high repair fees and a lack of access to specific parts often mean Canadians are pushed to buy new products rather than repairing the ones they have. This is expensive for people and creates harmful waste.

Budget 2023 announces that the government will work to implement a right to repair, to make it easier and cheaper for Canadians to repair, rather than replace, their home appliance and electronics. The government will launch consultations this summer, including on the right to repair and the interoperability of farming equipment, and work closely with provinces and territories to advance a right to repair, and make life more affordable for Canadians and protect our environment.

Common Chargers for Electronic Devices

Every time Canadians purchase new devices, they need to buy new chargers to go along with them, which drives up costs and increases electronic waste.

Budget 2023 announces that the government will work with international partners and other stakeholders to explore implementing a standard charging port in Canada for phones, tablets, cameras, laptops and other electronic devices, with the aim of lowering costs for Canadians and reducing electronic waste.

Automatic Tax Filing for Low-Income Canadians

The government is taking steps to ensure more low-income Canadians can easily file their tax returns in order to receive the benefits to which they are entitled.

Since 2018, the Canada Revenue Agency (CRA) has delivered a free and simple File My Return service, which allows eligible Canadians to auto-file their tax return over the phone after answering a series of short questions. Budget 2023 announces that the federal government will increase the number of eligible Canadians for File My Return to two million people by 2025—almost triple the current number.
Budget 2023 also announces that, starting next year, the CRA will pilot a new automatic filing service that will help vulnerable Canadians who do not currently file their taxes receive the benefits to which they are entitled.

Making Life More Affordable for Students

The federal government knows that the higher cost of living still means that students still need support to afford an education and pursue their dreams. Budget 2023 proposes to enhance student financial assistance for the school year starting August 1, 2023. This includes:

Increasing Canada Student Grants by 40 percent—to provide up to $4,200 for full-time students;
Raising the interest-free Canada Student Loan limit from $210 to $300 per week of study; and,
Waiving the requirement for mature students, aged 22 years or older, to undergo credit screening in order to qualify for federal student grants and loans for the first time.

This will allow post-secondary students to access up to $14,400 in enhanced Canada Student Financial Assistance for the upcoming school year. Students with disabilities and dependants will also receive an increase in Canada Student Grants. Quebec, the Northwest Territories, and Nunavut, which do not participate in the program, can receive federal funding to provide their own comparable support.

Lowering Credit Card Transaction Fees for Small Businesses

To support hardworking owners of small businesses, the federal government has been working closely with the payment card industry and small businesses to lower credit card transaction fees.

In Budget 2023, the government is announcing that it has secured commitments from Visa and MasterCard to lower fees for small businesses, while also protecting reward points for Canadian consumers offered by Canada’s large banks.

More than 90 per cent of credit card-accepting businesses will see their interchange fees reduced by up to 27 per cent from the existing weighted average rate. These reductions are expected to save eligible small businesses in Canada approximately $1 billion over five years.

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