Law to Change How Federal Money is Shared with Provinces and Income Taxes

This approved proposed law changes two things: how the federal government gives money to provinces, and some income tax rules. First, the federal government is giving a one-time extra payment of $2 billion to provinces and territories. The amount each province/territory gets is different. For example, Ontario gets $776 million, while Prince Edward Island gets $8.7 million. This money is meant to help provinces deal with the rising cost of living. Second, the proposed law creates a one-time payment through the income tax system called the "Cost of Living Relief." It's like getting extra money back when you file your taxes. This payment is for lower-income individuals and families. The amount you get depends on your income, whether you have a spouse or children, and if you share custody of your children. For example, a single person with no children gets less than a family with multiple children. This payment was issued in January 2023, based on your 2021 tax return.