Mr. Chair, thank you.
Ladies and gentlemen of the committee, my name is Gisèle Tassé‑Goodman, and I am the president of Réseau FADOQ. With me is Mr. Philippe Poirier‑Monette, special advisor on government relations.
I would like to thank the members of the Standing Committee on Finance for the invitation to participate in pre-budget consultations in advance of the 2025 budget.
Réseau FADOQ is a group of people aged 50 years and up, with over 580,000 members. Through our various initiatives, we seek to raise awareness among elected officials and members of civil society about seniors’ reality. The goal is to improve seniors’ quality of life.
Within the framework of the next federal budget, deploying efforts to improve the quality of life of a significant segment of the population will be important. It’s no surprise that, at the outset, we wish to emphasize a measure that Réseau FADOQ cares about, which is the 10% top-up to Old Age Security for people aged 75 years and up.
Increasing this benefit was and remains necessary. Nevertheless, people aged 65 to 74 years old have yet to understand why they are not entitled to the top-up. Currently, the annual income of a person under 75 years old who receives only the Old Age Security pension and the Guaranteed Income Supplement is less than $22,000. In this situation, a senior’s income does not even reach Canada’s official poverty line. This threshold is based on the market basket measure.
Keep in mind that this index sets out the cost of a basket of goods representing a basic standard of living. A person at this income level is still experiencing economic insecurity.
Since financial hardship is ageless, it is equally important for those aged 65 to 74 years old to access the 10% top-up of the Guaranteed Income Supplement.
Furthermore, it is necessary to include some measures left out of the previous budget and the most recent economic update.
During the 2021 election campaign, the government committed to increasing the Guaranteed Income Supplement by $500 a year for people aged 65 years and up living alone, and by $750 per year for couples. Three years later, seniors are still waiting.
Keep in mind that Guaranteed Income Supplement recipients are among the least fortunate in our society. Therefore, Réseau FADOQ hopes this promise will be kept.
In 2021, the government of Canada also committed to setting up a tax credit for experienced workers. In the context of a labour shortage, this measure would be welcome, since it encourages people to stay on the market or return to it. On that subject, we wish to highlight that the government of Quebec set up a similar tax measure and it led to compelling results.
If the government of Canada does not want to implement this measure, it could at least look into the possibility of increasing the employment income earnings exemption for Guaranteed Income Supplement recipients.
Over the last few years, the government of Canada increased the earnings exemption a few times. Each time, Réseau FADOQ welcomed the decision. This measure could reduce the impact of a tax trap discouraging Guaranteed Income Supplement recipients from staying on the labour market.
Another promise slow in being honoured since the last election campaign is broadening the Canada caregiver credit to make it a refundable tax-free benefit. Such a change would make the tax measure accessible to those less fortunate. It would also target more caregivers, whose involvement is essential.
I want to thank the members of the committee for listening to us.
We are now ready to answer your questions.