Tax Planning
Tax Planning with the New Canada Groceries and Essentials Benefit: Maximizing Relief
Explore how Canadians with low to modest incomes can plan ahead to take full advantage of the recent expansion of benefits under Bill C-19.
By NomadicTax Research Team • 5-8 min read • June 28, 2026
## Understanding the CGEB Changes
The Canada Groceries and Essentials Benefit (CGEB) replaces the old GST/HST credit in **July 2026**. Under Bill C-19, the benefit amount will increase **by 25% for five years** (2026-27 through 2030-31) for eligible low- and modest-income individuals and families. A one-time top-up equal to **50% of the 2025-26 GST/HST credit value** was delivered in **Spring 2026**. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit.html?utm_source=openai))
## Tax Planning Strategies to Maximize the Benefit
You can optimize your tax position to ensure you receive the most benefit:
- **File your tax return on time, every year**: Eligibility for CGEB depends on having filed your return. Even if your income is low or zero, filing is essential. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit.html?utm_source=openai))
- **Minimize adjusted family net income (AFNI)**: The lower your AFNI, the more likely you exceed the income thresholds to receive benefits. Consider timing deductible expenses, RRSP contributions if applicable, investment losses, and ensuring dependants are included appropriately. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit/who-eligible.html?utm_source=openai))
- **Claiming shared custody correctly**: If you share custody of a child, you may be eligible for half the benefit for that child. Ensuring accurate custody and parentage information can make a meaningful difference. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit/who-eligible.html?utm_source=openai))
- **Monitor changes in residency, marital status, or dependants**: Any life events can affect eligibility or amounts. Reporting changes promptly avoids overpayments or loss of benefit. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-groceries-essentials-benefit/payments-stop-change.html?utm_source=openai))
## Practical Example
Sarah and Tom, a couple with two children and total AFNI of **$40,000**, currently receive the GST/HST credit of **$1,500** per year. Under CGEB, in Summer 2026 they'd receive:
| Payment Type | Amount |
|-------------|--------|
| One-time top-up (50% of $1,500) | $750 (issued early Summer 2026) |
| New enhanced payments (25% annual increase) | $1,875/year (paid quarterly starting July 2026) |
| Total for 2026-27 year | $2,625 |
This results in total assistance ≈ **$2,625** for 2026-27, compared to the old credit of $1,500.
## Actionable Insights
1. **Update your direct deposit info and address** with CRA to avoid delays.
2. **Watch for payment dates**: Quarterly CGEB payments begin in July 2026; one-time top-ups by **June 5, 2026** at the latest. ([canada.ca](https://www.canada.ca/en/services/benefits/calendar.html?utm_source=openai))
3. **Keep personal info current**: marital status, dependant info, residency. A change may alter eligibility or reporting.
4. **Seek professional help** if your situation is complex**—e.g. shared custody, recent income drop, or recent immigration.
By aligning your filings, income reporting, and family/household data with the new CGEB rules, individuals and families with moderate means can maximize their relief under this new program.