In a bid to alleviate the financial pressures on Canadian families, Prime Minister Mark Carney has announced several key federal measures aimed at reducing living costs. These initiatives come just weeks before the federal budget is scheduled for presentation.
Permanent Implementation of School Nutrition Program
One significant step is the decision to make the National School Nutrition Program a permanent fixture. Previously, this program was initiated by the former Justin Trudeau government and was set to conclude in three years. Currently, the federal government invests approximately $200 million annually to support this initiative.
Impact on Canadian Children
Since its launch two years ago, the program has benefited around 400,000 additional children each year. Carney emphasized the importance of ensuring that no child attends school hungry, stating, “All our children should focus on their learning.” Families with two children can expect to save about $800 annually on groceries due to this initiative.
Simplified Tax Filing for Low-Income Families
The Canada Revenue Agency (CRA) will introduce simplified tax return services for families with low income, beginning in the 2026 tax year and fully operational by 2028. An estimated 5.5 million Canadians are expected to benefit from these changes.
Ensuring Access to Government Benefits
Many low-income individuals often do not file their taxes, resulting in missed access to crucial benefits such as the Goods and Services Tax Credit, the Canada Child Benefit, and the Canada Disability Payment. Carney noted, “Millions of low-income Canadians are not filing their tax returns, either due to lack of resources or because they believe their income is too low.”
Adopting Best Practices from Around the World
Canada is looking to Germany for inspiration, where similar tax services have been offered successfully for several years. Finance Minister François-Philippe Champagne, who joined Carney during this announcement in Nepean, stated, “We will implement it on a larger scale, addressing social inequalities.” Despite previous challenges faced by the CRA, Champagne expressed confidence in using technology to simplify the tax process for Canadians.
Changes to the Federal Budget Cycle
Additionally, the federal budget will now be presented in the autumn instead of spring, with the next one scheduled for November 4. Carney also announced a renewal of the “Strong Canada” pass, enabling free access to national parks and museums and discounts on VIA Rail tickets during the holiday season and summer of 2026.
Focus on Empowering Canadians
Carney emphasized, “We are empowering Canadians by helping reduce living costs.” By allowing families to retain more of their earnings, they can better care for their loved ones and engage more fully in their communities.
Further announcements regarding additional measures to assist Canadians are anticipated in the upcoming budget next week.
