Federal government launches automatic tax filing to unlock benefits for millions

New federal measures promise easier access to key credits and savings for low-income Canadians

Federal government launches automatic tax filing to unlock benefits for millions

Millions of low-income Canadians will soon have their taxes filed automatically, unlocking access to critical federal benefits that often go unclaimed—a change that could have significant implications for client financial planning, according to recent government announcements. 

Prime Minister Mark Carney revealed that, starting in the 2026 tax year, the Canada Revenue Agency will begin automatically filing taxes for up to 5.5 million low-income Canadians, with full implementation expected by 2029.  

This measure is designed to ensure that eligible individuals receive benefits such as the Canada Child Benefit, GST/HST credit, and the Canada Disability Benefit—programs that can represent thousands of dollars in annual support.  

Carney emphasized that many Canadians miss out on these benefits simply because they do not file taxes, often due to a lack of resources or the belief that their income is too low to matter. 

The government also announced that the national school food program will become a permanent fixture, providing meals for an estimated 400,000 children and saving families with two children about $800 per year on groceries, as reported by CBC News.  

Permanent annual funding of $216.6m will begin in 2029-30, with a commitment to expand the program in partnership with provinces, territories, and Indigenous communities. 

Additionally, the Canada Strong Pass will be renewed for the 2025-26 holiday season and summer 2026, offering free or discounted access to national parks, museums, and VIA Rail travel for young Canadians and families.  

The Prime Minister’s Office noted that the pass boosted VIA Rail ridership by 13 per cent and increased visits to cultural sites by 15 per cent over the past summer. 

While these measures are positioned as operational expenditures in the upcoming budget, the government has signalled that further announcements are forthcoming, as per Finance Minister François-Philippe Champagne.  

The timeline for automatic tax filing, however, has drawn criticism from opposition leaders, who argue that implementation is not moving quickly enough. 

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