Madam Speaker, I will be splitting my time with the hon. member for Pickering—Uxbridge.
I rise today in support of Bill C-30, the cost of living relief act, no. 1, which would double the goods and services tax, or GST, credit for six months. It is one of the new measures we are proposing to provide targeted support to Canadians who need it the most so we can help them adapt to the rising cost of living without, however, exacerbating inflation.
Our government is fully aware that Canadians are feeling the effects of inflation, especially when they fill up at the pumps or buy groceries, for example. Inflation is a worldwide phenomenon largely driven by the effects of the pandemic, amplified by the zero-COVID policy in China and Russia's illegal invasion of Ukraine.
Although inflation is not as high here as in several other countries and it has come down from its peak in June, we know that Canadians are worried. No single country alone can solve the problem of high global inflation. However, what we can do is help Canadians by taking tangible action to make life more affordable here at home. This brings me to Bill C‑30, which seeks to double the GST credit for six months.
Our proposal to double the GST credit for a six-month period would provide an additional $2.5 billion in targeted support for about nine million people living alone and nearly two million couples. In total, 11 million individuals and families who are already entitled to the tax credit would receive it, including roughly half of Canadian families with children and more than half of all seniors in Canada.
The GST credit is a tax-free benefit paid out every three months. It helps low- and modest-income individuals and families recoup the GST they pay. Canadians are automatically considered for this credit when they file their income tax returns and are eligible for it if their income is below a certain threshold. The measure we are proposing would benefit those who already qualify for the credit, and the help would be tangible.
In practical terms, single Canadians without children and single seniors, for example, would receive up to $234 more than they do now. Couples with two children, for example, would receive up to $467 more. A single parent with one child would receive up to $397 more than expected.
These additional amounts would be paid before the end of the year as one-time lump sum payments to current recipients through the system already in place. Recipients would not have to apply for the additional payments. All they have to do is file their 2021 tax return.
Bill C‑30 is part of the new suite of measures we are proposing to help Canadians. Another part is found in Bill C‑31, which I hope we will soon have the opportunity to debate.
This other bill proposes, for example, to create a Canadian dental benefit. This temporary measure would be offered as early as this year to children under 12 who are not covered by private dental insurance. Families could receive direct payments of up to $1,300 per child over the next two years, or $650 a year, to cover the cost of dental care. This benefit is the first step in the government's plan to offer dental care to families with an adjusted net income of less than $90,000 a year.
Bill C‑31 also proposes a one-time top-up to the Canada housing benefit. This would allow 1.8 million renters who are struggling to pay their rent to receive $500. It is another measure that I hope we will soon have the opportunity to approve.
Our government supports Canadians who are most vulnerable to an increase in the cost of living in a way that does not needlessly fan the flames of inflation. That is the danger in an inflationary crisis.
The incremental cost of new measures included in Bills C‑30 and C‑31 is $3.1 billion. That is only 0.1% of our gross domestic product. Therefore, we are proposing to strike a balance between fiscal and financial responsibility and compassion for those who truly need help.
In conclusion, what Bill C‑30 proposes is in addition to measures we have already announced as part of our plan to make life more affordable for Canadians.
First, the enhanced Canada worker benefit will provide three million Canadians with more support. For example, a couple could receive up to $2,400 more this year, while a single person could receive up to $1,200 more.
Second, agreements have been signed with the ten provinces and three territories. This will cut in half the cost of day care for Canadian families by the end of the year. This pan-Canadian initiative will result, for example, in savings ranging from $2,610 in Manitoba to $6,000 in British Columbia. For 2022, in the province of Quebec, which already has its own day care system, the government's plan will help create approximately 37,000 new day care spaces.
Third, we increased old age security for seniors aged 75 and over by 10%. This measure benefits more than three million Canadians and provides additional benefits of $766 for full pensioners in the first year.
Fourth, all major government benefits are indexed to inflation, including old age security, the guaranteed income supplement, the Canada pension plan, the Canada child benefit and the GST/HST credit. This means they are adjusted for increases in the cost of living.
Fifth and sixth, providing dental care to Canadians and making a one-time payment to renters who are struggling to pay for housing are two of the measures included in Bill C‑31, which we will be debating soon; I hope all members of the House will support it.
This is all in addition to other investments our government has made since 2015. I strongly believe in making life more affordable for Canadians, and especially in helping those who are most in need. That is exactly what Bill C‑30 does, and I urge all members to vote in favour.