Liberals tweak affordability plan, increase GST rebates


VANCOUVER-

Prime Minister Justin Trudeau is set to announce an affordability-focused plan that includes new details on the first phase of a national dental plan, a housing allowance top-up for tenants and a doubling of the federal GST rebate, sources confirm to CTV News.

While the announcement was due to take place on Thursday, it was postponed due to the death of Queen Elizabeth II.

Honoring these commitments would satisfy elements of the government’s confidence and supply agreement with the New Democrats that was to be concluded by the end of the year, and provide the government under pressure to address the concerns of Canadians on affordability something to report as he wraps up a three-day Cabinet meeting in Vancouver.

Plans to unveil those measures came on the heels of federal ministers saying the cost of living and what the federal government could do to address concerns had been a central topic at the retreat. Deputy Prime Minister and Finance Minister Chrystia Freeland said Wednesday that the government understands that “the most vulnerable in our society must be supported”, while being careful not to exacerbate inflation.

NDP Leader Jagmeet Singh was due to speak about the plan at a press conference at his party’s caucus meeting in Halifax, following the prime minister. However, this was also postponed.

Singh had reported that the NDP had been pushing behind the scenes to see these measures implemented, telling reporters that his party planned to “force” action on dental care, getting more people help and housing.

“We fought for this and we forced the government to keep its promises,” he said as he walked into Thursday morning’s caucus meeting. “We’ll have more to say after.”

DENTAL CARE DETAILS

When the plan is unveiled, the prime minister is expected to offer new information on the promised first phase of a national dental plan, focused on covering children under 12 with household incomes below $90,000.

The 2022 federal budget allocated $5.3 billion to Health Canada over the next five years to oversee the implementation of the dental plan.

While only those under 12 will have initial access, the program will expand to under 18s, seniors and people with disabilities in 2023. By 2025, it would be available to all Canadian families with an income of less than $90,000 per year, with no co-payment for anyone earning less than $70,000 in annual income.

With just months to go until the end of the year and the government is already struggling to improve service delivery under pre-existing programs, questions have been raised about exactly how this plan will work. Additional details on this are expected later today.

Asked about the status of that commitment on Wednesday, Singh said he was confident it would materialize and had worked all summer with the government on it. He noted that because they were aware of the tight schedule for the first phase of dental care, the NPD was “open to how it is delivered.”

“But functionally, which should happen by the end of this year, kids who need their teeth fixed should be able to do that,” Singh said.

HOUSING ALLOWANCE

The announcement was also expected to include a mention of plans to top up the one-time $500 rental assistance program called the Canada Housing Benefit, for those already receiving it.

Rooted in the NDP-Liberal deal, it was included in the 2022 federal budget with the promise of details “at a later date.”

It’s expected to cost eligible people $475 million this year. However, the NDP had hinted that it could be renewed in future years “if cost of living challenges remain”.

This pledge was just one of many commitments related to housing affordability made as part of the bipartisan agreement.

GST/HST TAX CREDIT

Although not part of the NDP-Liberal deal, Singh has been pushing for a GST rebate hike for some time. The upcoming rise is expected to be temporary and potentially last six months.

Adjusted for inflation, the GST/HST credit is a tax-free payment made four times a year to low- and modest-income individuals and families to offset the goods and services tax/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 a maximum of $612 and an additional $161 is provided for each child under 19, depending on income.

TRUDEAU PLANS TO STAY

Going forward with these plans, the Liberals appear to further secure their deal with the NDP, ready to keep the Trudeau government in power until the end of the current legislature in 2025 with the call of a scheduled general election. It also comes ahead of the appointment of a new Conservative Party leader this weekend.

According to a senior government source, at Wednesday’s cabinet conference, Trudeau reaffirmed his intention to lead the Liberals in the next federal election, as part of remarks on how he was looking forward to meeting and overcoming some of the challenges facing Canada and the world. currently facing, the source said.

The reiteration follows remarks he has made publicly previously, including in March when he announced the confidence and supply agreement with the NDP.

“As I have said many times, I plan to continue serving Canadians until the next election and beyond,” Trudeau said at the time.


With files from CTV News’ Kevin Gallagher and Mike Le Couteur