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What is the grocery rebate in federal budget 2023? Key questions, answered
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Canada’s economy might be recovering from the pandemic, but many Canadians are still struggling with the cost of living, thanks, in part, to the impacts of global inflation.
To help offset rising living expenses, the Government of Canada has built some benefit increases and fee reductions into its 2023 budget. Among these measures is a new grocery rebate in the form of a one-time payment for middle- and low-income Canadians that is designed to offset food inflation.
“Our more vulnerable friends and neighbours are still suffering from higher prices,” Minister of Finance Chrystia Freeland said after tabling the budget on March 28. “That’s why our budget contains targeted, temporary relief from the effects of inflation for those who need it.”
Here’s what we know about the rebate.
HOW WILL THE GROCERY REBATE WORK?
According to the budget, the benefit will be rolled out through the GST/HST rebate system, once a bill implementing it passes in the House of Commons. This move essentially re-ups and re-brands the recent GST rebate boost.
While no specific date for the payments has been announced, upcoming GST/HST credit payment dates for 2023 include April 5, July 5 and Oct. 5. Because the rebate is automatically rolled into the GST/HST credit, eligible Canadians shouldn’t need to do anything besides file their tax return in order to receive the payment.
WHO GETS THE GROCERY REBATE IN CANADA?
The Grocery Rebate is earmarked for 11 million low- to modest-income Canadians. It will provide eligible couples with two children with up to $467, single Canadians without children with up to $234 and seniors with $225 on average.
The budget doesn’t pinpoint any eligibility brackets based on income, but outlines hypothetical scenarios where a couple earning $38,000 per year and an individual earning $32,000 both received the maximum rebate.
Since the rebate will be rolled into the GST/HST credit, the eligibility criteria for that credit might offer some insight into who will be eligible for the maximum Grocery Rebate amounts.
The GST benefit is reduced as income rises. It’s phased out entirely once income reaches just over $49,000 for a single person, $50,000 for a couple without children and more than $60,000 for a couple with four children.
HOW MUCH DOES IT COST TO FEED A FAMILY OF 4 IN CANADA?
The average family of four will spend up to $16,288.41 on food this year, according to the latest Canada’s Food Price Report, published by the Agri-Food Analytics Lab at Dalhousie University.
“For a family of four, their food bill will increase by about $1,100 this year,” the lab’s director, Sylvain Charlebois, told CTV News Calgary on Tuesday.
The most substantial increases will be in the cost of vegetables, dairy and meat, according to the report. Food inflation has softened somewhat in recent weeks, Charlebois said, but even with that softening and the extra cash in their pockets from the grocery rebate, Canadians aren’t out of the woods yet.
“We are expecting things to be a little more manageable for households probably in the summer, (but) not before then,” he said. “We are expecting to finish the year with a food inflation rate of about four to five per cent. It’s still high, but it’s better than 10 per cent.”
HOW CAN I SAVE MONEY ON GROCERIES IN CANADA?
As finance commentator Pattie Lovett-Reid pointed out during an interview on CTV’s Your Morning on Tuesday, a maximum grocery rebate of $467 for a family of four doesn’t even offset half of the additional $1,100 families can expect to spend on groceries in 2023.
“It’s a small amount that will help a family of four,” she said. “But, is it enough? No, it’s not, we’ve got to get inflation down.”
With their spending power significantly weakened, a growing number of consumers are looking for new ways to save on their grocery bills.
According to a March 22 report published by the Agri-Food Analytics Lab, in partnership with Angus Reid, some of the methods Canadians are using to save money at the grocery store include reading weekly flyers, using coupons, taking advantage of volume discounting and using food rescue apps such as Too Good To Go and the Second Harvest Food Rescue App.
– With files from Senior Digital Parliamentary Reporter Rachel Aiello
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We're still stockpiling reusable bags. Big grocers have adopted solutions, but experts have concerns – CBC News
Canada’s plastic bag ban has had an unintended consequence: a proliferation of reusable bags piling up in basements, closets and, eventually, landfills.
“They’re everywhere,” said environmental researcher Tony Walker. “We’re drowning in them, and we shouldn’t be.”
To combat the problem, several of Canada’s big grocers have introduced solutions. Last week, Walmart launched a free national recycling pilot program for the retailer’s reusable blue bags. Competitors Sobeys and chains owned by Loblaw Companies Ltd. use recyclable paper bags for grocery delivery.
But some environmental experts argue that paper bags are also problematic and that the best solutions are those that help customers actually reuse their reusable bags.
“We just can’t keep giving [them] out,” said Walker, a professor at Dalhousie University’s School for Resource and Environmental Studies in Halifax. “We’re only meant to have a few of them, and we’re meant to use them until they fall apart.”
In late 2022, the federal government rolled out a ban on the manufacture, import and sale of several single-use plastics, including checkout bags. The regulations are being contested in court, but in the meantime, they remain in effect.
The regulations have made single-use shopping bags scarce in Canada, but they’ve also led to the proliferation of reusable bags, especially for grocery delivery.
“It just creates more waste, which is what we’re trying to avoid in the first place,” Walmart customer Udi Sela said in a CBC News interview in late 2022.
At the time, Sela, who lives in Maple, Ont., estimated his family had acquired about 300 reusable Walmart bags via grocery delivery.
“We can’t return them, we can’t do much with them.”
Now, a little more than a year later, Walmart has launched a pilot project to address the problem.
It allows customers to pack up their unwanted reusable Walmart blue bags and ship them — at no charge — to a facility where they’ll get a second life.
How it works
According to Walmart, bags in good condition will be laundered and donated to charity, primarily Food Banks Canada. Damaged bags will get recycled into other materials. Reusable bags typically can’t go in blue bins because they’re costly and difficult to recycle.
Customers must sign up for Walmart’s program, and enrolment is limited.
Jennifer Barbazza, Walmart’s senior manager of sustainability, said the retailer will fine-tune the details as the program progresses.
“[We] know that some customers have more reusable bags than maybe they need,” she said. “One of the things that we’re really excited to learn about from the pilot is customer acceptance and customer feedback.”
Udi Sela has already signed up.
“I definitely think it’s a step in the right direction,” he said in an interview on Friday. “It’s something that needed to be done a while ago. God knows we’ve got a ton of bags kind of piled up.”
He said he’s concerned that some customers may find mailing the bags a hurdle. However, it’s not deterring Sela, who soon plans to ship hundreds.
Passing the buck?
Not everyone is keen on Walmart’s project. Emily Alfred, a waste campaigner with Toronto Environmental Alliance, said donating the bags to the food bank is just passing on the problem.
“We need to remove waste from the system entirely, and just sending these somewhere else for someone else to deal with is not really a solution,” she said.
Alfred said a better option is a program Walmart piloted in Guelph, Ont., in 2022. For a fee, customers could check out reusable bags from an in-store kiosk and later return them to be cleaned and reused.
“That’s a real circular reuse system,” she said.
Walmart’s Barbazza said the retailer is continuing to explore different reusable bag programs, including ones placed in stores.
She also said she’s confident Canada’s food banks will make good use of the bags.
“There’s definitely a need for sturdy items to distribute materials to the food bank clients.”
The paper problem
Among Canada’s major grocers, only Walmart offers a reusable bag program for all customers.
Loblaw recently switched from reusable to recyclable paper bags for grocery delivery. Sobeys did not respond to requests for comment, but according to its website, the grocer also uses paper bags and “reusable options” for home delivery.
Several environmental experts say paper bags aren’t a good solution, because their production leaves a sizable carbon footprint.
“Paper bags are a problem,” Alfred said. “It takes a lot of energy to recycle paper, takes a lot of trees and energy to make new paper.”
Loblaw said it continues to explore a variety of more sustainable solutions. “It’s a challenge we’re committed to addressing,” spokesperson Dave Bauer said in an email.
Both Walker and Alfred applaud Metro for its grocery delivery program, because the grocer, which operates in Ontario and Quebec, reuses delivery materials.
Metro said customers can get their goods delivered in a cardboard box or reusable bags, which can be returned and used for another delivery. Or customers can opt for a plastic bin and remove their groceries from it upon arrival.
Metro does not offer similar programs for in-store shoppers.
Alfred said the federal government should introduce regulations that mandate retailers adopt effective reusable bag programs for all customers.
“It’s up to our governments and people to demand that these companies do better,” she said.
But Walker suggested that the regulations would be hard to enforce and that incentives could be a better tactic.
For example, if retailers increased the price of reusable bags, shoppers might be less likely to forget them when they head to the store, he said.
“When the cost is a disincentive to do an activity, people change their behaviour.”
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CTV National News: Honda's big move in Canada – CTV News
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Freeland defends budget measures, as premiers push back on federal involvement – CBC News
Deputy Prime Minister and Finance Minister Chrystia Freeland says she thinks unhappy premiers will come around on measures in the federal budget that touch on provincial legislation, even as they push back.
At an event in Toronto on Sunday, Freeland — who presented the federal budget on Tuesday — said the national government needs to push ahead on such issues as housing and she was “extremely optimistic” premiers would choose to co-operate.
“Housing is a national challenge, and the federal government needs to be leading the charge,” she said.
“My own experience has been when there are big issues that really matter to Canadians, after all the sound and the fury, people are prepared to roll up their sleeves and find a win-win outcome for Canadians.”
Several premiers have pushed back against the federal government in recent months and again after the budget was released on the grounds that some measures touch on provincial jurisdiction.
In a letter released Friday by the Council of the Federation, which represents the leaders of all 13 provinces and territories, the premiers said Ottawa should have consulted them more ahead of the budget.
Individual premiers have shared more pointed critiques.
“It’s a never-ending spending platform that we’ve seen now for the last 10 years,” New Brunswick Premier Blaine Higgs said on CBC’s Power & Politics on Friday.
“My initial thoughts about the federal budget are that they are overtaxing, overspending, overborrowing and over interfering in provincial affairs,” Alberta Premier Danielle Smith said earlier this week.
Alberta has clashed with the government repeatedly over housing. Smith introduced legislation earlier this month that would require provincial oversight of deals made between municipalities and the federal government, including for future agreements around federal housing funds.
Freeland said on Sunday that, as an example, the federal child-care program negotiated through a series of deals with provinces and territories showed that co-operation was possible.
Capital gains tax changes criticized
The federal government has also faced some opposition on what was perhaps the most prominent measure revealed on budget day: changes to Canada’s capital gains tax rules. The government has proposed raising the inclusion rate to 67 per cent on capital gains above $250,000 for individuals.
“The 21st-century winner-takes-all-economy is making those at the very top richer, while too many middle-class Canadians are struggling,” Freeland said Sunday, adding the government was asking wealthy Canadians to pay their “fair share.”
“We do need to ensure that we have some revenue coming in. This is a very limited way of ensuring that that occurs,” Treasury Board President Anita Anand said in an interview on Rosemary Barton Live on Sunday.
Critics have raised concerns that the changes could result in reduced investment or capital flight.
“The big concern right now … is this going to have a detrimental impact to the progress we’re trying to make in making Canada a hub for innovation,” said Kirk Simpson, CEO of the tech company goConfirm, in a separate interview on Rosemary Barton Live.
“With productivity the way that it is, we want more capital, not less, flowing into business innovation,” Simpson told CBC chief political correspondent Rosemary Barton.
Freeland said Sunday that the changes will affect very few Canadian individuals — the government estimates 0.13 per cent — and the revenue will go to pay for investments in areas like housing.
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