Canada to Introduce Automatic Tax Filing for Low-Income Citizens
Ottawa, Saturday, 11 October 2025.
Prime Minister Mark Carney announces a system to automatically file taxes for low-income Canadians, aiming to assist 5.5 million people by 2028, alongside making the school food program permanent.
A Pivotal Policy Shift
On 10 October 2025, Prime Minister Mark Carney announced a significant policy shift with the introduction of an automatic tax filing system for low-income Canadians. This initiative aims to simplify tax compliance for vulnerable groups and ensure that eligible individuals receive government benefits such as the GST/HST credit, Canada Child Benefit, and Canada Disability Benefit. The system, set to begin for the 2026 tax year, is expected to benefit approximately 1 million people initially, expanding to 5.5 million by 2028 [1][2].
Addressing Long-Standing Challenges
The automatic tax filing initiative was first introduced in the 2020 throne speech and included in the 2023 budget. It addresses the issue that many low-income Canadians do not file taxes, either due to resource constraints or the belief that their income is too low for it to matter. This system seeks to alleviate these barriers by simplifying the process and ensuring access to valuable benefits [1][3].
Complementary Social Initiatives
Alongside the tax filing system, the government is making the National School Food Program permanent. Scheduled to receive annual funding of CAD 216.6 million starting in the 2029-30 fiscal year, the program currently supports 400,000 children and helps families save approximately CAD 800 per year on groceries. These measures are part of the broader federal budget strategy, set to be presented on 4 November 2025, which focuses on generational investments in social programs [1][3][4].
Political and Public Reactions
The announcement has elicited varied reactions. Critics, such as Conservative House Leader Andrew Scheer, have expressed skepticism about the timeline, questioning the speed of the rollout. Meanwhile, supporters, including social service organizations, welcome the initiative as a long-overdue step to support low-income Canadians. The plan has been praised for its potential to reduce administrative burdens and ensure that benefits reach those in need [1][2][5].