OTTAWA-
Outlining how the Liberals plan to act on affordability issues, Prime Minister Justin Trudeau promises to introduce legislation to implement the first phase of a national dental plan, a top-up housing allowance for renters and a doubling of the federal GST rebate at the start of the fall session of Parliament.
On Tuesday in New Brunswick, amid a Liberal caucus retreat, the premier unveiled details of a three-pronged plan for low-to-modest income families, after the announcement was delayed last week due to the death of Queen Elizabeth II.
Delivering on these commitments satisfies 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 provides the government – under pressure to respond to affordability concerns of Canadians – something to point out as the fall political season approaches.
Trudeau touted the measures as targeting “the middle class and those working hard to join it, as we continue to be fiscally responsible.”
“We are maintaining fiscal firepower while ensuring that those who need help are not left behind. The help we are announcing today will make a big difference for the people who get it from a targeted way that will not fuel inflation,” Trudeau told reporters.
“These will be the very first bills we will introduce when the House returns.”
On Tuesday afternoon, NDP Leader Jagmeet Singh took credit for the plan, saying that had they been left to their own devices, the Liberals would not have acted.
“We fought hard and demanded since the spring that the Liberal government step in and give people some respect, the dignity of being able to pay for their own groceries. And we won,” Singh said. “We forced this government to deliver three things. Each of these items wouldn’t have happened without the fact that we forced the government to respect this respect for people… We are putting money back in people’s pockets. “
Newly elected Conservative Leader Pierre Poilievre also reacted to the announcement on Tuesday, saying he believes pre-promised and, in part, pre-budgeted commitments aimed at low-income Canadians are “more inflationary spending “.
“The problem with spending more money as a solution to inflation is that it just pours more gasoline on the inflationary fire and that’s exactly what Justin Trudeau continues to do,” said Poilievre.
TARGETED DENTAL CARE FOR DEC. 1
Trudeau released more information Tuesday on the promised first phase of a national dental plan, focused on coverage for children under 12 with household incomes below $90,000.
Instead of being prepared to roll out a comprehensive national dental plan, the Liberals are moving forward with what essentially amounts to a stopgap measure to fulfill their commitment to ensure eligible children under 12 receive the dental care they need, before the end of 2022.
For this program – which the government calls the “Canada Dental Benefit” – Trudeau said the government’s “target” implementation date is December 1, pending passage of legislation by Parliament and assent royal.
The program would cover expenses retroactively to October 1, 2022.
According to the government, this benefit would provide payments of up to $650 per child per year, depending on family income.
For instance:
- $650 would be paid per child if the adjusted family net income is less than $70,000;
- $390 would be paid per child if the adjusted family net income is between $70,000 and $79,999; and
- $260 would be paid per child if the adjusted family net income is between $80,000 and $89,999.
The first phase of dental care will provide eligible parents or guardians with “direct, upfront, tax-free payments to cover dental costs.” However, to access the benefit, parents or guardians must submit an application to the Canada Revenue Agency (CRA) and certify that:
- Their child does not have access to private dental coverage;
- They will be responsible for dental care costs for which they will use the benefit; and
- They understand that they will be required to provide receipts to verify expenses incurred if necessary.
“Health Canada and the CRA are working closely together on an application platform that would provide timely payments. Further details on how and when to apply for the benefit will be communicated in due course,” the government said in a statement.
The Liberals estimate that 500,000 Canadian children would be eligible to have some of their dental care covered by this plan, and pledge that this benefit will not reduce any pre-existing federal income-tested benefits, such as the Canada Child Benefit children.
When asked if he thought the amount offered per child was enough, Singh said yes. He said he participated in discussions about the amount of the benefit, saying the calculation was made by looking at current trends in dental services that children in this demographic group need and what they cost.
“We are confident that it will be a… good amount that will cover the needs of children 12 and under,” Singh said.
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 per year.
The 2022 federal budget allocated $5.3 billion to Health Canada over the next five years to oversee the implementation of the dental plan.
On Tuesday, Trudeau said his government remained committed to completing the comprehensive plan.
SUPPLEMENTARY HOUSING ALLOWANCE
The Liberals also plan to enhance the $500 one-time rent assistance program called the Canada Housing Benefit, for renters with adjusted net incomes below $35,000 for families, or $20,000 for individuals, by the end of the year – pending parliamentary approval.
Rooted in the deal between the NDP and the Liberals, the supplement was included in the 2022 federal budget, with the government earmarking $475 million for those eligible this year. Now the Liberals say the proposed funding totals $1.2 billion.
“People who are currently receiving hundreds of dollars in housing allowances each month under the program that we have put in place and which we are co-funding with the provinces and territories, can also apply to receive this additional support,” said Trudeau on Tuesday.
This is another certification-based program that the CRA will offer, as long as applicants have filed their 2021 tax returns, pay at least 30% of their adjusted net income on housing, and pay rent for their own principal residence in Canada. .
Criticizing this element of the plan specifically, Poilievre said the money — which if spread over the year would amount to just over $40 a month — wouldn’t go very far for those who live in expensive neighborhoods.
This pledge was just one of many commitments related to housing affordability made as part of the bipartisan agreement. About 1.8 million low-income tenants, including students, would qualify for this assistance.
DOUBLE THE GST CREDIT
Although not part of the NDP-Liberal deal, Singh has been pushing for a GST rebate hike for some time. The next hike will be temporary and will 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 help offset goods and services tax/sales tax harmonized 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.
Now, if forthcoming legislation to implement this boost is passed, the government believes that:
- A single mother with one child and a net income of $30,000 would receive $1,160 this year;
- A single senior with a net income of $20,000 would receive $701 this year; and
- A couple with two children and a net income of $35,000 would receive $1,401 that year.
The government estimates that 11 million individuals and families would benefit from a boost through this increase, which is expected to administer $2.5 billion in additional funding to current recipients in the form of a one-time lump sum payment before the end of the year. year.
“This will provide hundreds of dollars in support to Canadians, including half of all families and more than half of all seniors in the country,” Trudeau said.