Carney Budget Offers $679 Grocery Boost to Two-Parent Families

Prime Minister Mark Carney released his second federal budget on Thursday, outlining new financial supports for Canadian households.

The plan, titled Masters of our Destiny, focuses on immediate affordability measures alongside longer-term workforce initiatives.

The most direct cash transfer in the document is a one-time 50 percent increase to the Canada Groceries and Essentials Benefit.

This supplement will be distributed in early 2027 to low and moderate-income families.

The federal government stated that a single person without children will receive up to $339.

Couples with two children are eligible for a maximum payment of $679.

The budget also expands the Canada Caregiver Credit by making it fully refundable for 585,000 caregivers.

This change allows recipients with incomes too low to owe tax to receive up to $1,260 annually.

Carney announced a new tax exemption for Canadian artists in a social media post.

Creative workers will pay no tax on the first $45,000 of income derived from their work.

Officials did not provide a formal definition of who qualifies as an artist.

Christine Lindberg questioned whether the rule applies to visual or performing artists only in a public comment on the announcement post. Dave Healy joked that his carpentry work might qualify, while Gerald St. John suggested Subway employees could claim the title of sandwich artists. Starting with the 2026 tax year, individuals with celiac disease may claim an optional flat $1,000 under the Medical Expense Tax Credit. This measure removes the need for patients to document specific gluten-free food costs. The budget reaffirms housing measures introduced in 2024, including 30-year mortgage terms for first-time buyers or new builds. The limit for optional mortgage insurance was raised to $1.5 million, up from the previous $1 million cap. The federal fuel excise tax suspension, which reduced gasoline prices by up to 10 cents per litre, remains in effect until the end of January 2027. Rates will return to 50 percent of pre-suspension levels by the end of March 2027 before standard rates resume on April 1, 2027. The government allocated $170 million for the 2027-28 fiscal year to continue the Workforce Tariff Response program. This fund provides retraining support for workers affected by trade barriers.