Revealing how the Liberals plan to act on affordability, Prime Minister Justin Trudeau promises to introduce legislation to implement the first phase of a national dental care plan, an additional housing benefit for renters and a doubling of the federal GST credit , at the beginning of the autumn session of the Parliament. In New Brunswick on Tuesday amid a Liberal walkout, the premier released details of a three-pronged plan aimed at low- to moderate-income families, after delaying the announcement last week due to the death of Queen Elizabeth II. Keeping these commitments meets the levels of the government’s confidence and supply agreement with the New Democrats expected by the end of the year and gives the government — under pressure to respond to Canadians’ concerns about affordability — something to pointed towards the fall political season. NDP Leader Jagmeet Singh is expected to speak about this plan at a press conference later this evening. Last week at a meeting with his caucus, Singh indicated the NDP was pushing behind the scenes to see these measures implemented, telling reporters his party planned to “force” action on dental care, getting more assistance to people and housing. .
DENTAL CARE TARGETED IN DECEMBER. 1
Trudeau released further information Tuesday about the promised first phase of a national dental care plan, focused on coverage for children under 12 with household incomes of less than $90,000. Instead of being prepared to develop a comprehensive national dental care program, the Liberals are moving forward with what amounts to a stopgap measure to fulfill their commitment to ensure that eligible children under 12 get the dental care they need, before the end of 2022. For that program — which the government calls “Canada’s Dental Benefit” — Trudeau said the government’s “target” implementation date is Dec. 1, pending legislation that passes Parliament and receives Royal Assent. The first phase of dental care will provide eligible parents or guardians with “immediate, upfront tax-free payments to cover dental expenses.” According to the government, this benefit will provide payments of up to $650 per child per year for lower-income families. To access the benefit, parents or guardians must apply through the Canada Revenue Agency (CRA) and certify that:
Their child does not have access to private dental cover. They will have out-of-pocket dental costs that they will use the allowance for. and They understand that they will need to provide proof of out-of-pocket expenses if required.
“Health Canada and the CRA are working closely on an application platform that will deliver payments in a timely manner. More details on how and when to apply for the Benefit will be shared in due course,” the government said in a statement.
The 2022 federal budget allocated $5.3 billion to Health Canada over the next five years to oversee the implementation of the dental care plan. While only people under 12 will have first access, the program will expand to people under 18, seniors and people living with disabilities in 2023. By 2025, it will be available to all Canadian families with incomes under 90,000 $ per year, with no co-payment for anyone earning less than $70,000 in annual income.
Housing Benefit
The Liberals also plan to top up the one-time $500 rental support program called the Canada Housing Benefit, for renters with adjusted net income below $35,000 for families or $20,000 for individuals, by the end of the year — pending parliamentary approval. Built into the NDP-Liberal deal, the top-up was included in the 2022 federal budget, with the government committing $475 million to go to those eligible this year. Now, the Liberals say the proposed funding totals $1.2 billion. It’s another attestation-based program that the CRA will offer as long as applicants have filed their 2021 tax return, pay at least 30 percent of their adjusted net income into the shelter and pay rent for their own primary residence in Canada. This commitment was just one of several commitments related to housing affordability made as part of the bilateral agreement.
GST/HST TAX CREDIT
Although not part of the NDP-Liberal deal, Singh has been calling for an increase in the GST rebate for some time. The upcoming hike will be temporary, lasting six months. Adjusted for inflation, the GST/HST credit is a non-taxable payment made four times a year to low- and moderate-income individuals and families to help offset the GST/Harmonized Sales Tax they pay. As the program currently stands, single Canadians with a maximum income of just over $49,000 receive $467 per year. Those who are married or common-law receive up to $612, and an additional $161 is provided for each child under 19, depending on income. The government estimates that 11 million individuals and families will receive a boost through this increase. More to come.
