Mr. Speaker, I will be sharing my time with the member for Kingston and the Islands.
I am very pleased to rise today to call attention to our government's efforts to make life more affordable. Naturally, Canadians are living in a complex, unpredictable world. Unfortunately, in many ways, this world is also more expensive.
In response, the government is staying focused on what it can control: building a strong Canadian economy, diversifying our foreign trade partners, ensuring responsible fiscal management and, of course, supporting Canadians. I am pleased that the opposition motion underscores that the government has taken action because, yes, we have taken action to help Canadians. We are working tirelessly to make life more affordable for them.
Here is one very practical example. As we all know, ship traffic in the Strait of Hormuz has practically been at a standstill for several weeks. This has caused oil prices to spike, gas prices to soar and the price of other essential goods to increase not only here in Canada, but everywhere. Was it our government that started the war in Iran? Obviously, the answer is “no”. Did we take action to lower costs for Canadians? The answer is “yes”.
Global conflicts and persistent supply disruptions in the Middle East are not things the government can control. What we can do, and what we are doing, is helping Canadians who are impacted by these conflicts. Since April 20, just over a month ago, the federal excise tax on gas has been suspended, and it will remain suspended until September 7. The suspension of this tax is expected to save Canadians up to an estimated $5.75 when filling up a 50-litre tank. It provides real savings for families, who will hopefully be able to travel across Canada this summer. It also lowers costs for truckers and businesses. It is expected that this measure will provide Canadians with over $2.4 billion in relief in 2026-27. By lowering the cost of gas and diesel at the pump, the government is taking meaningful action to support Canadians through these challenging times. At a cost of a little over $2 billion, we are doing it without putting the public purse at risk.
I can give yet another example. Even before the conflict in the Strait of Hormuz, the historic rise in tariffs plunged the economies, businesses and workers of several countries into uncertainty. Canada was no exception. Did Canada cause the global trade disruptions that sent the cost of essential goods skyrocketing? Of course not. Did we take action? The answer is yes.
Earlier this year, to help Canadian families make ends meet, we launched the new Canada groceries and essentials benefit. This benefit is based on the GST credit, as we all know, and provides increased support to more than 12 million low- and modest-income Canadians. Next Friday, June 5, these 12 million Canadians will receive a one-time supplement payment equal to 50% of this year's annual GST credit. This measure alone will provide more than $3 billion in assistance to individuals and families in need.
That is not all. Starting this July, low- and modest-income Canadians will receive higher quarterly payments. The benefit will be increased by 25% for five years, providing over $8 billion in additional support. In total, a family of four could receive up to almost $2,000 this year and approximately $1,400 per year over the next four years.
That is real and meaningful support that will help cover the cost of groceries, bills and everyday expenses.
However, that is not all. We also cut taxes for 22 million Canadians by reducing the lowest marginal personal income tax rate from 15% to 14%. This year, in 2026, that means savings of $420 per person or over $800 for a two-income family.
We eliminated the GST for first-time homebuyers on new homes at or under $1 million, which is a big deal in my riding of University—Rosedale, and we lowered the GST for first-time homebuyers on new homes between $1 million and $1.5 million. We made the national school food program permanent to give 400,000 children access to healthy meals and to help their parents save $800 a year in groceries.
We have also taken concrete steps to make the banking system fairer and, above all, more affordable for Canadians. Since March, consumers can no longer be charged more than $10 in fees when there are non-sufficient funds in their personal account to cover a payment. Financial institutions can no longer charge more than one NSF fee in a period of two business days for the same account. Furthermore, and this is important, no NSF fees may be charged when the account shortfall is under $10.
We will be starting automatic federal benefits this year that will reach up to 5.5 million low-income Canadians by the 2028 tax year. This will ensure that millions of low-income individuals across Canada can receive the assistance they are entitled to. In addition, in the spring economic update, we announced our intention to reduce the Canada pension plan base contribution rate from nearly 10% to 9.5% effective January 1 of next year.
Our government is focusing on what we can control, such as building a stronger Canadian economy and helping Canadians who are struggling every day because of the cost of living. We will continue to shift from reliance to resilience, and we are doing all of this while maintaining a strong fiscal position. According to the spring economic update, the projected deficits are lower than anticipated in the 2025 budget.
Is Canada responsible for the upheaval in the global economy? No. Is the government taking action to mitigate the consequences? Yes.
We are building Canada strong for all, and I urge the members of the House to support our efforts.