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Inflation is a major concern for many Canadians, especially those with low and modest incomes. The rising cost of living can make it hard to afford basic necessities like food, rent and utilities. That’s why the federal government has introduced a new measure to provide targeted inflation relief to the Canadians who need it most: the Grocery Rebate.

The Grocery Rebate is a one-time payment that will be delivered to eligible Canadians on July 5, 2023, by direct deposit or cheque through the Canada Revenue Agency. The Grocery Rebate is part of the Cost of Living Act, No. 3, which also includes a $2 billion Canada Health Transfer (CHT) top-up to help provinces and territories reduce backlogs and wait times in health care.

The Grocery Rebate is designed for 11 million low- and modest-income Canadians and families who are most affected by inflation. The amount of the rebate will vary depending on your income and family size, but here are some examples:

Eligible couples with two children will receive up to $467
Single Canadians without children will receive up to $234
Seniors will receive an extra $225 on average

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To receive the Grocery Rebate, you don’t need to apply or do anything else besides filing your 2021 tax return. The rebate will be issued automatically to those who qualify, along with the July GST Credit payment by direct deposit or cheque through the Canada Revenue Agency.

The Grocery Rebate can help you cover some of the increased costs of food and other essentials due to inflation. According to Canada’s Food Price Report1, the average family of four will spend up to $16,288.41 on food this year, which is an increase of $695 from last year. The Grocery Rebate can offset some of this increase and help you save money on your grocery bills.

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