Madam Speaker, I will be sharing my time with the member for Saanich—Gulf Islands.
I am pleased to contribute to the debate on this important legislation today. Making life more affordable for Canadians is a key priority for our government. The pandemic has been tough for everyone, and unfortunately one of the consequences has been inflation. This worldwide inflation problem has made affordability a real concern for many Canadians, including in my riding of Whitby, and especially for the most vulnerable.
We understand that there are those who are going through hard times, but this government has real solutions to the cost of living struggles of many Canadians. Overall, the government’s affordability plan is delivering targeted and fiscally responsible financial support to the Canadians who need it most, with particular emphasis on addressing the needs of low-income Canadians who are most exposed to inflation.
The government’s affordability plan includes an enhanced Canada workers benefit that will put up to $2,400 more into the pockets of low-income families. There is a 10% increase in old age security for seniors over 75, which will provide more than $800 in new support to full pensioners over the first year and increase benefits for more than three million seniors.
We are also cutting regulated child care fees in half by the end of this year. We have doubled the Canada student grant until July 2023 and are waiving interest on Canada student loans through to March 2023. The main support programs, including the Canada child benefit, the GST tax credit, the Canada pension plan, old age security and the guaranteed income supplement, are all indexed to inflation so those will be increasing as well.
Two weeks ago, the government tabled two important pieces of legislation in Parliament. The bills represent the latest suite of measures to support Canadians with the rising cost of living without adding to inflation. Bill C-31 would make it so that up to half a million children under 12 would be able to see a dentist, and low-income renters would receive a little extra breathing room with a $500 payment to help with the cost of rent.
The bill we are discussing today is Bill C-30, which would double the GST tax credit for six months. Doubling the GST credit would provide $2.5 billion in additional targeted support to the roughly 11 million individuals and families who already receive the tax credit. That includes about nine million single individuals, almost two million couples and more than half of all Canadian seniors. Just think about that. Over half of all Canadian seniors are going to be supported by this measure.
The GST tax credit is indexed to inflation on an annual basis. For the July 2022 to June 2023 benefit year, the value of the GST credit grew by 2.4%. However, because these increases are based on the inflation rate from the prior year, the sharp rise in inflation in 2022 is not yet reflected in the GST credit payments that Canadians are currently receiving. This is why the extra top-up is the right thing to do at this particular time, because Canadians are not going to get the benefit of an increased GST tax credit payment until the following year. It is a good thing that we are topping it up.
Single Canadians without children would receive up to an extra $234, and seniors would receive an extra $225 on average. I have another example of how it would work. A single mother with one child and $30,000 in net income will receive $386.50 for the July through December 2022 period, and another payment of the same amount for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, she would receive an additional $386.50. In total, she would be receiving about $1,160 this benefit year through the GST credit.
A couple with two children and $35,000 in net income would receive $467 for the July through December 2022 period and another $467 for the January through June 2023 period under the current GST credit. With the temporary doubling of the GST credit amounts for six months, this family would receive an additional $467. In total, it would receive $1,401 this benefit year through the GST credit.
The proposed extra GST credit amounts would be paid to all current recipients through the existing GST credit system as a one-time lump sum payment before the end of the year, pending, of course, the adoption of the legislation. This highlights the importance of getting this done as quickly as possible, as we all can agree Canadians are feeling the pressures of inflation and the cost of living increases.
Importantly, recipients would not need to apply for the additional payment, but should make sure to file their 2021 tax returns, if they have not done so already, to be able to receive the current credit and the additional payment. Bill C-30 and the other important measures I mentioned would deliver targeted support to the Canadians who need it most without adding unnecessary fuel to the fire and allow inflation to become entrenched. That is a major concern, and we do not want inflation to become entrenched. That is something that would in fact be counterproductive and make life more expensive for everyone for years to come.
However, we cannot compensate every single Canadian for rising costs driven by global events. To do so would make inflation worse. Bill C-30 is about balancing fiscal responsibility with compassion. This support is the right thing to do at the right time. Even as we deal with the very real challenges that the global economy is facing right now, it is important for us to take real comfort in the reality that Canada has a very strong economic foundation as we face these global challenges.
Canada has the lowest deficit this year in the G7. Canada has the lowest net debt-to-GDP ratio in the G7, and Canada’s AAA credit rating was reaffirmed this year by Moody's, S&P and DBRS. The International Monetary Fund and the Organisation for Economic Co-operation and Development predict that Canada’s recovery will be the second fastest in the G7 this year and next. That is a pretty good track record.
The government’s affordability plan has already been putting more money back in the pockets of Canadians who need it most. We will continue to provide timely support where it is needed most, all while maintaining fiscal discipline.