Nov 22, 2024

Temporary GST relief and cash rebates: A welcome step, but long-term solutions are needed

As Canadians continue to face crushing costs of living, the federal government has announced two measures aimed at providing short-term relief: 

  1. A two-month GST/HST holiday (December 14, 2024 – February 15, 2025) on a variety of essential goods, including prepared foods, children’s clothing, and diapers. 
  1. A $250 “Working Canadians Rebate” for nearly 18.7 million people earning $150,000 or less in 2023, to be distributed in early spring 2025. 

With housing and food costs squeezing household budgets, any immediate relief is welcome. For working-age adults — who represent 69% of Toronto’s food bank clients (Who’s Hungry 2024) — these measures may help alleviate some of the daily pressures they face. Of course, not all Canadians need this temporary support — and unfortunately, some who need it may not receive it. 

For example, families in Ontario spending $2,000 on eligible goods during the GST-free period could save up to $260. While modest, this relief is meaningful for individuals and families already forced to make tough choices between rent, groceries, and other essentials. For those who don’t need the relief, however, this may be a needless cost to the government’s bottom line at a time when federal debt is over $1 trillion. 

Meanwhile, the Working Canadians Rebate will not be available to people who are unable to work, such as those relying on social assistance. This includes many people with disabilities who are left to survive on incomes that are more than $1,000 below the poverty line in Ontario, and face some of the highest rates of poverty in Canada. As we welcome measures to help Canadians weather the rising cost of living, it’s crucial to ask: why are those who need the most support being left behind? 

Short-term fixes can’t address long-term crises 

These temporary relief measures will cost the government $6.3 billion. Yet, in comparison, the Canada Disability Benefit — intended to lift some of Canada’s most vulnerable working-age individuals out of poverty on a long-term basis — has been allocated an average of only $1 billion per year. This stark discrepancy demonstrates a lack of adequate investment in long-term solutions for those who need it most. 

Temporary measures cannot solve the systemic challenges driving poverty and food insecurity in Canada. The costs of rent, groceries, and basic utilities have risen far faster than incomes for years, leaving a growing number of working-age adults unable to make ends meet. 

At Daily Bread, we know the policies that can make a lasting difference: 

  • Strengthened social assistance rates and wages to ensure everyone can meet their basic needs;  
  • Deep and sustained investments in affordable, social, and supportive housing to address the root causes of poverty and homelessness; and, 

These measures require bold and targeted action — precisely the type of leadership needed to ensure no one in Canada is left behind during this cost-of-living crisis. 

Generosity makes a difference 

While we continue to call for more ambitious policy change, we’re deeply grateful to our supporters who are using these government measures to make a meaningful impact. In response to both Ontario’s recent announcement of a $200 rebate to all Ontarians and now the federal government’s $250 rebate to those earning under $150,000, many generous community members have offered to donate their cheques to food banks, allowing us to put those dollars toward serving those in greatest need. 

If you receive a rebate and can afford to pay it forward, consider donating to Daily Bread Food Bank. Together, we can use this moment of relief to support our most vulnerable community members. 

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