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Liberals to hike GST rebates, help with rent payments in new affordability plan

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VANCOUVER -

Prime Minister Justin Trudeau is set to announce an affordability-focused plan that includes new details about the first phase of a national dental care plan, a top up to a housing benefit for renters, and a doubling of the federal GST rebate, sources confirm to CTV News.

While the announcement was scheduled to happen on Thursday, it has been postponed due to Queen Elizabeth II’s death.

Following through on these commitments would satisfy planks of the government's confidence-and-supply agreement with the New Democrats that were due by the end of the year, and provides the government under pressure to respond to Canadians' affordability concerns something to point to as it wraps up a three-day cabinet meeting in Vancouver. 

The plans to unveil these measures were confirmed on the heels of federal ministers stating that the cost of living, and what the federal government could do to address concerns, had been a central topic of the retreat. Deputy Prime Minister and Finance Minister Chrystia Freeland indicated Wednesday that the government understood that "the most vulnerable in our society need to be supported," while being mindful of not exacerbating inflation. 

NDP Leader Jagmeet Singh was expected to speak to this plan in a press conference from his party's caucus meeting in Halifax, following the prime minister. However, that has also been postponed.

Singh had signalled that the NDP had been pushing behind the scenes to see these measures implemented, telling reporters that his party was planning to "force" action on dental care, getting more help to people, and housing.

"We've been fighting for this, and we forced the government to deliver," he said on his way into Thursday morning's caucus meeting. "We'll be having more to say afterwards."

DENTAL CARE DETAILS

When the plan is revealed, the prime minister is expected to offer new information about the promised first phase of a national dental care plan, focused on coverage for kids under the age of 12 with a family income of less than $90,000.

The 2022 federal budget earmarked $5.3 billion to Health Canada over the next five years to oversee implementation of the dental care plan.

While only those under 12 years old will get first access, the program will expand to under-18 year olds, seniors, and people living with a disability in 2023. By 2025, it would be available to all Canadian families with incomes of less than $90,000 annually, with no co-pays for anyone earning less than $70,000 in annual income.

With just a few months left before the end of the year and the government already struggling to improve service delivery under pre-existing programs, questions have been raised about how exactly this plan will work. Additional details about this are expected later today.

Asked about the status of this commitment on Wednesday, Singh said he was confident it would come to fruition, and had been working throughout the summer with the government on it. He noted that because they were aware of the tight timeline for the first phase of dental care, the NDP were "open to the way that it's delivered."

"But functionally what should happen by the end of this year, kids that need to get their teeth looked after should be able to do that," Singh said.

HOUSING BENEFIT

The announcement was also expected to include mention of plans to top up the $500 one-time rental support program called the Canada Housing Benefit, for those already receiving it.

Inked into the NDP-Liberal deal, it was included in the 2022 federal budget with promise of details "at a later date."

It is slated to cost $475 million, going to those eligible this year. However, the NDP had suggested it could be renewed in coming years "if cost of living challenges remain."

This pledge was just one of several housing affordability-related commitments made as part of the

GST/HST TAX CREDIT

While not part of the NDP-Liberal deal, Singh has been calling for a GST rebate hike for some time. The coming hike is expected to be temporary, potentially lasting six months.

Adjusted to inflation, the GST/HST credit is a non-taxable payment made four times a year to individuals and families with low and modest incomes, meant to help offset the goods and services tax/harmonized sales tax they pay.

As the , single Canadians with a maximum income of just over $49,000 receive $467 a year. Those who are married or common-law receive a maximum of $612 and an additional $161 is provided for each child under 19, depending on income. 

TRUDEAU PLANS TO STICK AROUND

In moving ahead with these plans the Liberals appear to be further securing their deal with the NDP poised to keep Trudeau's government in power until the end of the current Parliament in 2025 with the scheduled general election call. It also comes ahead of a new Conservative Party leader being named this weekend.

According to one senior government source, during Wednesday's cabinet confab, Trudeau reaffirmed his plans to lead the Liberals into the next federal election, as part of remarks about how he was looking forward to getting through and beyond some of the challenges Canada and the world are currently facing, the source said.

This reiteration follows remarks he's made publicly previously, including in March when he announced the confidence-and-supply agreement with the NDP.

"As I’ve said a number of times, I’m planning on continuing to serve Canadians through and beyond the next election," Trudeau said at the time. 

With files from CTV News' Kevin Gallagher and Mike Le Couteur 

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