The federal government will automatically file taxes for low-income Canadians, making them eligible for government benefits, Prime Minister Mark Carney said in a statement Friday.
The Canada Revenue Agency (CRA) will begin automatic tax filing for about 1 million people in 2027 (for the 2026 tax year), Carney’s office said, adding that the number is expected to reach 5.5 million by 2028.
This “will ensure they receive government benefits they qualify for, such as the GST/HST credit, the Canada Child Benefit, the Canada Disability Benefit,” Carney’s office said.
The measures will be implemented in the next federal budget, scheduled to be presented on November 4th.
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“Millions of lower-income Canadians don’t file their taxes, either because they don’t have the resources to do so or because they think their income is too low for it to matter,” said Carney.
“This means that often the people who need benefits most often don’t get them.”
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Ottawa had considered the change in 2023, including placing the federal government’s intention in the
Among the measures announced was legislation that allows the CRA to automatically file a tax return on behalf of some lower-income Canadians starting in the 2025 tax year.
The budget will also make permanent the National School Lunch Program to provide meals for up to 400,000 children, he added.
“This program ensures children receive healthy meals at school and saves families with two children $800 a year on groceries. By making it permanent, we will work with provinces, territories and Indigenous partners to expand the program to more schools across Canada,” the statement added.
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The Canada Strong Pass, which offers free or discounted entry to some of the country’s most iconic places, will be brought back for the holidays and summer next year, Carney said. The pass expired on September 2 this year.
“With the Canada Strong Pass, Canadians can visit national, provincial and territorial museums, historic sites, parks and travel by train for free or at a reduced cost,” said Carney.
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Canadians calling the CRA helpline have experienced long wait times.
This led Finance Minister François-Philippe Champagne to set a 100-day deadline for the CRA to correct call center delays in September, even as Ottawa plans public service spending cuts.
The federal union representing CRA workers has started an online campaign denouncing staff cuts at the agency, calling it the “Canada on Hold” campaign.
Marc Brière, national president of the Tax Workers Union, says the CRA has cut almost 10,000 jobs since May 2024 and the campaign seeks to highlight the impact of the cuts on the provision of services to taxpayers and businesses.
–with files from Canadian Press
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