The federal government is set to temporarily double GST rebate checks, increase assistance to help low-income Canadians pay their rent and launch the first part of a national dental care plan. News of Queen Elizabeth II’s death on Thursday afternoon interrupted the plan to unveil details of the changes as the Liberal cabinet met in Vancouver, and it is now unclear when the announcement will be made. Before the delay, two sources familiar with details of the plans spoke to The Canadian Press on condition of anonymity to discuss matters that have not yet been made public. The three-day cabinet retreat, which ends on Thursday night, comes as the government prepares for the autumn session of parliament with a new Conservative leader. The meetings focus heavily on the economy and the cost of living crisis. The NDP sees the announcement as a huge victory stemming from the supply and confidence deal reached with the Liberals last winter. Part of that deal saw the Liberals promise to advance key NDP demands, including dental care and an expanded housing benefit. Both were included in the budget in April but have yet to be issued. The sources say the dental care program will allow parents of children under 12 to apply for a $650 payment to cover dental expenses this year and again next year, while a more formal program is developed. The rent allowance will include a one-time top-up of $500 to the Canada Housing Benefit. The Liberals budgeted $300 million for dental care this financial year and $475 million for housing benefit. NDP Leader Jagmeet Singh has made it clear that not moving on those priorities could destroy the pact that will ensure his MPs support the minority Liberal government in key votes until 2025. Singh also called for additions to the GST credit and the Canada Child Benefit, but neither was included in the March agreement. Sources say there will be no adjustments to the Canada Child Benefit in this announcement, but the government is set to double GST checks for the next six months. Canadians with low and moderate incomes based on their annual tax returns receive a check every three months as a kind of deduction for part of the VAT they pay. The current allowance is up to $467 a year for a single person, $612 for married or civil couples and $161 for each child under 19. The benefit is lower as income rises and is phased out entirely when income reaches just over $49,000 for a single person, $50,000 for a couple without children and more than $60,000 for a couple with four children. The payments are adjusted for inflation, but the increase this year is based on inflation in 2021, meaning payments for the GST credit and most other federal benefits rose by 2.4%. Inflation averaged more than double that in the first seven months of 2022. Trudeau opened Wednesday’s cabinet meeting with a speech acknowledging there are big challenges facing Canada and the world, but saying he’s energized to press on and deliver the solutions the Liberal government is planning. His comments, confirmed to The Canadian Press by two sources with knowledge of what was said, matched his repeated assertions publicly and privately that he has no intention of stepping down before the next election. Ministers were briefed at their meeting Wednesday afternoon by Michael Sabia, deputy finance minister, along with private-sector economists who helped paint a picture of both Canada’s economy and inflationary pressures, as well as the global situation. Finance Minister Chrystia Freeland said Wednesday there will be round-the-table discussions about how best to help Canadians weather inflation, but without disrupting the federal budget balance. —Mia Rabson, The Canadian Press RELATED: Province targets cost of living with 2% rent cap, increased tax benefits RELATED: Liberal cabinet meeting in Vancouver, expected to reconvene before fall meeting Federal policy inflation Royal family
