Automatic Federal Benefits for ONLY Lower-Income Individuals

Budget 2025 proposes to amend the Income Tax Act to grant the CRA the discretionary authority to file a tax return for a taxation year on behalf of an individual who meets all the following criteria: 

  • the individual's taxable income for the taxation year is below the lower of either the federal basic personal amount or provincial equivalent (plus the age amount and/or disability amount, where applicable); 

  • all income of the individual for the taxation year is from sources for which specified information returns have been filed with the CRA;

  • at least once in the preceding three taxation years, the individual has not filed a return;

  • the individual has otherwise not filed a return for the taxation year prior to, or within 90 days following, the tax filing deadline for the year; and

  • any other criteria, as determined by the Minister of National Revenue. 

Prior to filing a return on behalf of an eligible individual, the CRA would provide the individual with the information it has available at the time in respect of their tax return. The eligible individual would have 90 days to review the information and submit changes to the CRA. If the eligible individual does not confirm the information (with or without changes) by the end of the 90 days, the CRA could file a tax return on the individual's behalf. The CRA would then issue a notice of assessment, and subsequently determine and issue the individual's credit and benefit entitlements. 

This measure would apply to the 2025 and subsequent taxation years

Gov Website for more info:

https://budget.canada.ca/2025/report-rapport/tm-mf-en.html#a11

Jane Zhao