Prime Minister Mark Carney unveiled a series of affordability initiatives on Monday to assist Canadian families grappling with the escalating cost of living. The central element of Monday’s announcement is the Canada Groceries and Essentials Benefit, which is aimed at enhancing the GST rebate for families and individuals over the next five years.
Carney, speaking in Nepean, Ont., emphasized the government’s commitment to supporting Canadian families most in need while also fostering long-term food security and affordability. He highlighted the importance of targeting the GST rebate towards low and modest-income Canadians, as essential items like groceries constitute a significant portion of their household expenses.
Under the new benefit, low- and modest-income Canadians eligible for the GST rebate will receive a one-time increase in the first year, raising the annual amount for a family of four to $1,890 and for an individual to $950. Starting in 2026/27, the GST rebate will see a 25% boost over the following five years, providing annual support of up to $1,400 for families of four and approximately $700 for individuals.
To address the soaring cost of groceries outpacing inflation, Carney announced the allocation of $500 million from the Strategic Response Fund to aid food suppliers in expanding capacity and improving productivity. Additionally, a $150-million Food Security Fund will assist small- and medium-sized businesses in enhancing greenhouse and abattoir facilities and fortifying food supply chains.
Furthermore, the government introduced a measure allowing companies to fully deduct greenhouses acquired after Nov. 4, 2025, and put into operation before 2030 to bolster domestic food supply and investment in food production.
Carney also disclosed a $20 million funding injection into the Local Food Infrastructure Fund to alleviate pressure on food banks and enhance community food programs. Moreover, he revealed plans for a National Food Security Strategy aimed at enhancing food production, promoting access to affordable and nutritious food, implementing unit price labeling, and addressing food insecurity in Canada’s North.
Opposition House leader Andrew Scheer criticized the GST rebate as a temporary measure that won’t provide lasting relief to Canadians. Despite his reservations, Scheer confirmed that Conservatives would support the GST top-up legislation if presented as a standalone bill without unrelated elements. Conservative Leader Pierre Poilievre reiterated the party’s commitment to allowing the GST boost to pass Parliament.
