The Canada Revenue Agency (CRA) has announced a one-off $250 GST rebate for eligible Canadians as part of their efforts to assist households managing growing expenses. While the GST/HST credits are distributed quarterly, this rebate is set to address the concerns of low to middle income earnings households. Taxpayers who submitted their 2024 tax return will receive the rebate, assuming they fulfill the residency and age criteria. This automatic deposit will take place a few weeks into the new year, providing some relief to tightened budgets during this inflationary period.
Who is eligible and the application procedures
Beneficiaries are Canadian citizens or permanent residents who are 19 years or older as of the filing date of the 2024 tax return. While the rebate is aimed at low to mid income earners, there is no clear income threshold as higher earners can still receive reduced benefits. Families of eligible children who are under 19 years of age and are registered on the GST/HST credit claim are also eligible, however the rebate varies for each child. There is no extra paperwork to be filled as the rebate will be processed for eligible individuals after their return is verified for direct deposit or cheque payments.
Key Dates Relevant to Your Calendar
Considering most Canadians will receive the rebate in early 2025, the range of dates that the CRA releases credits has to be factored in for planning purposes. The CRA issues payments every quarter: on April 4, then in September 2025, October 2025, and January 2026. The one-time $250 rebate will be bundled with the April 4 payment of GST/HST credits; thus, the payments will be automated and credited on the same date.
Receipt of Payment
For Canadians who registered for direct deposit with the CRA, no further steps will have to be undertaken to receive the rebate as it will be automatically deposited. Canadians who do not possess direct deposit will have the paper cheques mailed to the registered address. To prevent payment stagnation, it is better to confirm your banking and contact details with the CRA online or via phone. In case of payment issues or perceived ineligibility, the CRA has helplines available for the payments and inquiries.
What This Means for Canadian Households
While $250 will not cover an individual’s grocery expenses for an entire month, it is, indeed, a meaningful form of monetary relief for a majority of households. Much like the expanded Canada Child Benefit and the GST/HST credit, the rebate helps mitigate the impact of inflation on fuel, food, and utility prices. This rebate demonstrates the government’s commitment to relieving the burden of economic strain that persists due to heightened inflation pressure. It is advisable that residents pay attention to upcoming announcements, as today’s one-time rebate could serve as an impetus for other forms of relief in the future.