The Canadian government is set to introduce an automatic tax filing system for low-income individuals and make the national school food program permanent as part of an upcoming federal budget that aims to support vulnerable citizens. Prime Minister Mark Carney unveiled these initiatives during a news conference in Nepean, Ont., where he also announced the extension of the Canada Strong Pass until the summer of 2026.
Carney emphasized the need for responsible decision-making in the budget to safeguard essential programs for society’s most at-risk segments and promote progress. The automatic tax filing system was first proposed by former Prime Minister Justin Trudeau’s government in the 2020 throne speech and is now slated for implementation following formal commitments made in the 2023 budget.
The system aims to assist low-income Canadians, particularly those on government assistance, who often forego filing tax returns despite being eligible for various federal benefits. These benefits include the GST/HST tax credit, the Canada child benefit, the Canada workers benefit, the Canadian disability benefit, and the disability tax credit, among others.
Carney highlighted that failing to file tax returns can prevent those in need from accessing crucial benefits. He provided an example of how a single parent with two young children earning $15,000 from a part-time job could qualify for up to $25,000 in combined federal and provincial benefits.
The automatic benefits filing system is expected to enroll around a million individuals with simple tax situations starting in 2027, reaching up to 5.5 million low-income Canadians by 2029. The national school food program, which was initially funded with $1 billion over five years in the spring of 2024, has already provided meals to 400,000 children annually, resulting in significant savings for families.
Carney affirmed the government’s commitment to expanding the school food program in collaboration with provinces, territories, and Indigenous partners, with permanent annual funding of $216.6 million starting in 2029-30. Additionally, the Canada Strong Pass will be extended to cover the upcoming holiday season and the summer of 2026, following its success in promoting domestic tourism and boosting attendance at national historic sites, parks, and museums.
