The Canadian government is set to introduce an automated tax filing system for low-income individuals and make the national school food program a permanent initiative as part of an upcoming federal budget aimed at supporting the nation’s most vulnerable populations.
Prime Minister Mark Carney unveiled these measures during a press conference in Nepean, Ontario, where he also announced the extension of the Canada Strong Pass through the holiday season and into the summer of 2026.
Carney emphasized the need for responsible decision-making in the budget to safeguard essential programs that assist marginalized groups and promote societal progress.
The automatic tax filing system, initially proposed in the 2020 throne speech and later confirmed in the 2023 budget, aims to simplify the tax process for low-income Canadians, particularly those receiving government aid who may not traditionally file returns.
Failure to file taxes, especially for individuals earning below the basic personal amount, can result in missed benefits like the GST/HST tax credit, Canada child benefit, Canada workers benefit, Canadian disability benefit, and disability tax credit.
Carney highlighted the potential benefits, citing an example of a single parent with two children earning $15,000 from part-time work being eligible for up to $25,000 in combined federal and provincial benefits.
The automatic benefits filing system is expected to enroll approximately one million individuals with straightforward tax affairs in 2027, increasing to 2.5 million in 2028 and eventually reaching up to 5.5 million low-income Canadians by 2029.
Conservative House leader Andrew Scheer expressed concerns about the proposed timeline, suggesting that the implementation may not meet public expectations.
In a separate initiative, the government allocated $1 billion over five years starting in spring 2024 to expand the national school food program, which has already benefited 400,000 children annually by providing meals and easing financial burdens for families.
Carney reaffirmed the government’s commitment to making the school food program a permanent fixture, with plans to collaborate with provinces, territories, and Indigenous partners to broaden its reach and impact across the country.
The program is slated to receive permanent annual funding of $216.6 million starting in 2029-30 to sustain its operations and support more children in need.
Additionally, the Canada Strong Pass, which had been introduced to boost domestic tourism, will be extended to cover the upcoming holiday season and the summer of 2026. The pass offers free access to national historic sites, parks, and marine conservation areas, along with discounts on camping fees, museum admissions, and rail travel for youth and young adults. This initiative has proven successful in driving tourism and increasing visitors to various attractions.