Ministers Valdez and Khera highlight the federal government's tax break for all Mississauga residents and Working Canadians Rebate for workers

GREATER TORONTO AREA, Nov. 24, 2024 /CNW/ - The past few years have been challenging for people in Mississauga. It feels like the price of everything has gone up. And while inflation is back to the 2% target and interest rates have been cut four times this year, we know that Canadians are not yet feeling that in their household budgets.

The federal government cannot set prices at the checkout, but we can give Mississaugans more money in their pockets—to help them afford the things they need and save for the things they want.

Today, the Honourable Rechie Valdez, Minister of Small Business, and the Honourable Kamal Khera, Minister of Diversity, Inclusion and Persons with Disabilities, highlighted the federal government's plan to put more money in the pockets of Mississauga residents.

As Prime Minister Justin Trudeau announced on November 21, starting December 14, the federal government is giving a tax break to all Canadians. With a GST/HST exemption across the country, Canadians, including those living in Mississauga, will be able to buy essentials like groceries, snacks, children's clothing, and gifts—all tax-free.

This new tax break will apply to:

• prepared foods, including vegetable trays and pre-made meals, salads and sandwiches
• restaurant meals, whether dine-in, takeout or delivery
• snacks, including chips, candy and granola bars
• beer, wine, cider and pre-mixed alcoholic beverages below 7% ABV
• children's clothing and footwear, car seats and diapers
• children's toys, such as board games, dolls and video game consoles
• books, print newspapers and puzzles for all ages
• Christmas trees

This tax break is projected to last until February 15. This will deliver meaningful savings for Mississaugans who will benefit from purchasing all groceries GST/HST-free, providing real relief at the cash register.

Working Canadians will also get some cash back. We're doing this by providing a new Working Canadians Rebate. That means Canadians who worked in 2023 and had net earnings up to $150,000 will see a $250 cheque in their mailbox or that amount deposited into their bank account, starting early spring. With the Working Canadians Rebate, we are putting money directly into the pockets of the middle class—those who have worked so hard to beat inflation. This will give 18.7 million Canadians that extra help to buy what they need.

Passing this legislation will allow for workers and working families to have more money in their pockets.

Families will be spending quality time together over the coming weeks. Some will light Christmas trees for Santa to put gifts underneath. Some will share meals with family and friends. Some might just make hot chocolate, order some takeout and stay in for a movie night. With these announcements, we're making the holidays easier, no matter what they look like for you, and helping Canadians start the new year with a little more money in their pockets.

Quotes

"At a time when Mississaugans need it most, our government is helping make life more affordable for them. This holiday season, we have the opportunity to give Mississaugans what they truly deserve—keeping more of their hard-earned money in their pockets. With inflation back down to 2%, tax relief on groceries and seasonal essentials, and a $250 rebate for working Canadians, our government is supporting everyone in our community. This means you can focus more on celebrating with family and friends and start the new year off with a little extra money in your bank account."
– The Honourable Rechie Valdez, Minister of Small Business

"The holiday season is a time for friends and families to come together and celebrate. But we know that for many Canadians, it can be financially challenging, even with inflation back down to 2 percent and interest rates reduced four times this year. Our two-month tax relief on groceries and holiday essentials, along with the additional $250 rebate for working Canadians, will reduce costs when they are at the highest. This way, you can focus on the festivities and start the new year with more money in your pockets."
– The Honourable Kamal Khera, Minister of Diversity, Inclusion and Persons with Disabilities

“Compared to our G7 allies, Canada’s macroeconomic indicators are performing well; however, Canadians aren’t feeling these positive outcomes at the checkout counter. To help with the costs associated with the holiday season, our government is implementing a holiday tax cut that will see the GST/HST removed from groceries, children’s clothes, diapers, snacks, toys and other holiday essentials. We’re also providing $250 in the new year to help working Canadians recover some of the costs of the holiday season. Our government believes in supporting Canadians, and these new measures will help Canadian families through the holidays.”
– The Honourable Ruby Sahota, Chief Government Whip and Member of Parliament for Brampton North

Quick facts

• The GST/HST would be fully relieved on the supply or importation of qualifying goods for a period beginning on December 14, 2024, and ending on February 15, 2025. Further details on the qualifying goods are available in the backgrounder: A tax break for all Canadians.
  • A family spending $2,000 on qualifying goods, such as children's clothing, shoes and toys, diapers, books, snacks for the house or restaurant meals would pay $100 less GST over the two-month period.
  • In provinces where the HST will also be removed from qualifying goods (Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island), further savings would be realized. In Ontario, the same $2,000 basket of qualifying purchases realize HST savings of $260 over the two-month period.
• Canadians who have claimed tax credits for Canada Pension Plan / Quebec Pension Plan contributions or for Employment Insurance (EI) or Quebec Parental Insurance Plan (QPIP) premiums, and those who reported income from EI or QPIP benefits, with individual net income below $150,000 in 2023, would be eligible for the Working Canadians Rebate. Eligible Canadians would begin receiving the payments starting in spring 2025. More information on the rebate is available in the backgrounder: The Working Canadians Rebate.
• The government is focused on making life more affordable for Canadians, with actions that are already saving families and individuals thousands of dollars a year, including:
  • the new National School Food Program, with $1 billion over five years to provide meals for up to 400,000 more kids each year, ensuring all children have the food they need to have the best start in life, regardless of their family circumstances. The program is expected to save the average participating family with two children $800 per year in grocery costs, with lower-income families benefiting the most.
  • more money through the Canada child benefit to help with the costs of raising children and make a real difference in the lives of children in Canada. The Canada child benefit, which is providing up to nearly $8,000 per child in 2024–25, is indexed annually to keep up with the cost of living and has helped lift hundreds of thousands of children out of poverty since its launch in 2016.
  • the Canada-wide $10-a-day child care system, which is saving families up to $14,300 per child, per year. It has already cut fees for regulated child care to an average of $10 a day or less in over half of all provinces and territories and by 50% or more in all others.
  • the Canadian Dental Care Plan, which is saving families about $730 per year. It is already available for children under 18 whose family income is under $90,000, because no one should have to choose between taking care of their kids' teeth and putting food on the table.

Related products

• Backgrounder: A tax break for all Canadians
• Backgrounder: The Working Canadians Rebate

Associated links

• News release—More money in your pocket: A tax break for all Canadians and the Working Canadians Rebate

Stay connected

Follow Canada Business on social media.
X (Twitter): @canadabusiness | Facebook: Canada Business | Instagram: @cdnbusiness

For easy access to government programs for businesses, download the Canada Business app.

SOURCE Innovation, Science and Economic Development Canada

Contacts: Callie Franson, Senior Communications Advisor and Issues Manager, Office of the Minister of Small Business, [email protected], 613-297-5766; Media Relations, Innovation, Science and Economic Development Canada, [email protected]