Carney Announces 2025 Budget to Introduce Automatic Tax-Filing for Low-Income Canadians
Automatic Tax Filing to Aid Low-Income Canadians: New Initiatives Announced
The federal government is set to introduce an automatic tax filing system to assist low-income Canadians in accessing vital government benefits. Prime Minister Mark Carney announced on Friday that the Canada Revenue Agency (CRA) will implement automatic tax filing for about 1 million Canadians starting in 2027 for the 2026 tax year. This initiative is projected to expand to 5.5 million people by 2028.
Enhancing Access to Essential Benefits
By ensuring that taxes are automatically filed, eligible individuals will receive benefits such as the GST/HST credit, the Canada Child Benefit, and the Canada Disability Benefit. These measures will be outlined in the upcoming federal budget, expected to be tabled on November 4.
Addressing Tax Filing Challenges
Prime Minister Carney noted that many low-income Canadians fail to file taxes due to a lack of resources or the misconception that their income is too low to warrant filing. This often results in the most vulnerable citizens missing out on crucial benefits.
Legislative and Program Developments
The government had been considering this move since 2023, proposing legislation to allow the CRA to handle tax returns automatically for low-income Canadians, potentially starting with the 2025 tax year. Additionally, the federal budget will permanently establish the National School Food Program, providing meals for up to 400,000 children. This program aims to save families with two children approximately $800 annually on groceries. Furthermore, the initiative will be expanded in collaboration with provinces, territories, and Indigenous partners.
Reintroduction of the Canada Strong Pass
Prime Minister Carney also announced the return of the Canada Strong Pass, offering free or discounted admission to national, provincial, and territorial museums, parks, and historic sites. This will be available during holidays and summer next year, following its expiration on September 2.
CRA Call Centre Improvements and Staffing Concerns
In response to long wait times experienced by Canadians calling the CRA helpline, Finance Minister François-Philippe Champagne has mandated a 100-day period to address call centre delays. This comes amid planned spending cuts in the public service. The federal union representing CRA employees has launched the “Canada on Hold” campaign to protest staffing reductions, highlighting the loss of nearly 10,000 jobs since May 2024 and its impact on service delivery to taxpayers and businesses.
As these initiatives unfold, Emegypt will continue to provide updates and insights on their progress and impact on Canadian society.
