The Liberal government will roll out a long-awaited automatic tax filing system for low-income Canadians while making the national school food program permanent, ahead of a federal budget aimed at supporting the country’s most vulnerable citizens.
Prime Minister Mark Carney unveiled the initiatives on Friday in his Nepean, Ontario riding. He also confirmed the Canada Strong Pass will be extended over the 2025 holiday season and summer 2026.
“We will take pragmatic decisions so we can protect programs and initiatives that support the most vulnerable in our society… We will build programs that help you get ahead,” Carney said.
Automatic Tax Filing System
The automatic filing system, first announced under former Prime Minister Justin Trudeau in 2020 and reaffirmed in the 2023 budget, is designed for Canadians with “simple tax situations” who may not normally file tax returns.
By law, all Canadians who owe taxes must file annually. However, many low-income individuals, particularly those on government assistance, often expect no liability and do not file, which can prevent them from accessing crucial benefits.
The new system will ensure Canadians receive benefits such as the GST/HST tax credit, the Canada Child Benefit, the Canada Workers Benefit, the Canadian Disability Benefit, and the Disability Tax Credit. Carney highlighted that a single parent with two children earning $15,000 annually could receive up to $25,000 in combined federal and provincial benefits.
The rollout will begin in 2027, enrolling roughly one million people. By 2028, participation will rise to 2.5 million, reaching up to 5.5 million by 2029.
Conservative House leader Andrew Scheer criticized the timeline, calling it too slow. “Another four years to implement a five-year-old Liberal policy doesn’t look all that fast,” he said.
Permanent National School Food Program
In spring 2024, the government committed $1 billion over five years to expand school meals, reaching 400,000 additional children annually. Carney noted that since its launch, the program has saved parents with two children about $800 each year.
“No child should go to school hungry or sit in a classroom all day wondering where their next meal will come from,” Carney said.
The government plans to move forward with legislation to make the program permanent. From 2029-30, the program will receive $216.6 million in annual funding. Efforts will continue with provinces, territories, and Indigenous partners to expand the program nationwide.
Canada Strong Pass Extension
Carney also announced that the Canada Strong Pass, introduced in 2025 to encourage domestic tourism, will be extended from Dec. 12 to Jan. 15 and again in summer 2026.
The pass provides:
Free admission to national historic sites, parks, and marine conservation areas.
25% off camping fees.
Free admission for children under 17 to select museums, with 50% discounts for young adults aged 18-24.
Free Via Rail travel for children under 17 traveling with an adult; 25% discount for young adults.
The government reported the pass increased VIA Rail ridership by 13% and boosted visits to parks, museums, and historic sites by roughly 15% over the summer.
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