Legislation to provide new Grocery Rebate and strengthen public health care receives Royal Assent

News release

May 11, 2023 - Ottawa, Canada - Department of Finance Canada

Today, Bill C-46, the Cost of Living Act, No. 3, received Royal Assent. This legislation delivers new inflation relief to the Canadians who need it most through the new Grocery Rebate, and strengthens public health care with a $2 billion Canada Health Transfer (CHT) top-up to help reduce backlogs and wait times, and support pediatric hospitals and emergency rooms.

The new one-time Grocery Rebate will deliver targeted inflation relief for 11 million low- and modest-income Canadians and families who need it most, with up to an extra $467 for eligible couples with two children; up to an extra $234 for single Canadians without children; and an extra $225 for seniors, on average. The Grocery Rebate will be delivered to eligible Canadians on July 5, 2023, by direct deposit or cheque through the Canada Revenue Agency.

The Cost of Living Act, No. 3, also delivers the previously announced $2 billion CHT top-up, to help provinces and territories deliver the high quality and timely health care Canadians expect and deserve. This additional top-up will help alleviate immediate pressures in health care systems across the country.

This additional $2 billion CHT top-up builds on previous CHT top-ups totaling $6.5 billion provided throughout the pandemic, and is part of the federal government’s $198.3 billion plan to improve health care for Canadians. Provinces and territories must not use any of this funding to divert any of their own spending on health care. Provinces and territories are also expected to improve how health information is collected, shared, used, and reported to Canadians to help manage public health emergencies and deliver better health outcomes.  

Quotes

“While inflation continues to come down for the ninth month in a row, in Budget 2023, our government is delivering new, targeted inflation relief for Canadians who need it most, and providing immediate support to strengthen public health care for Canadians. It is excellent news for Canadians that Bill C-46 received Royal Assent today, following unanimous approval by the House of Commons just a few weeks ago.”

The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Canadians deserve a public, universal, and high-quality health care system that provides timely access to health services when and where they need them. As we continue our work with provinces and territories to strengthen health care services, this investment will help address the immediate pressures, especially in pediatric hospitals, emergency rooms, and surgical and diagnostic backlogs.”

The Honourable Jean-Yves Duclos, Minister of Health

Quick facts

  • First introduced in Budget 2023, the one-time Grocery Rebate will provide new, targeted inflation relief to 11 million low- and modest-income Canadians and families:

    • A single mother with one child and $30,000 in net income will receive $386.50 for groceries. This is in addition to the $1,160 she receives this year through the GST Credit.
    • A single senior with $20,000 in net income will receive $233.50 for groceries. This is in addition to the roughly $701 he receives this benefit year through the GST Credit.
    • A couple with two children and $35,000 in net income will receive $467 for groceries. This is in addition to the roughly $1,401 they receive this benefit year through the GST Credit.
    • Recipients will not need to apply for the Grocery Rebate, which will be delivered along with the July GST Credit payment. However, they will need to file their 2021 tax return if they have not done so already to be able to receive the payment.
  • On February 7, 2023, the Prime Minister announced a $198.3 billion, ten-year health care plan, including $46.2 billion in new funding for the provinces and territories to improve their health care systems.

  • This $198.3 billion investment includes today’s $2 billion CHT top-up to urgently address pressures on health care systems, and builds on $6.5 billion in one-time CHT top-ups that the federal government has provided throughout the pandemic. Funds will be allocated per capita, based on existing CHT rules: 

    • Alberta: $233.120 million  
    • British Columbia: $273.238 million  
    • Manitoba: $72.450 million  
    • New Brunswick: $41.674 million  
    • Newfoundland and Labrador: $27.051 million  
    • Northwest Territories: $2.348 million  
    • Nova Scotia: $52.306 million  
    • Nunavut: $2.088 million
    • Ontario: $776.262 million  
    • Prince Edward Island: $8.759 million 
    • Quebec: $447.067 million
    • Saskatchewan: $61.385 million
    • Yukon: $2.252 million   

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Contacts

Media may contact:

Adrienne Vaupshas
Press Secretary
Office of the Deputy Prime Minister and Minister of Finance
Adrienne.Vaupshas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries:

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca

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