Automatic tax-filing to increase benefits uptake
In a change from the usual practice of releasing budgets in the first quarter, the Federal Government presented its budget in November 2025. A key item for Vibrant Communities Calgary (VCC) was authorization for the Canada Revenue Agency to file tax returns on behalf of low-income individuals in simple tax situations. This will allow for automatic enrolment in benefit programs. Eligibility is determined through the tax system (e.g., Goods and Services Tax Rebate, Canada Child Benefit, Canada Workers Benefit). Automatic enrolment helps reduce poverty by ensuring people receive benefits they qualify for, including those they may otherwise miss out on because they are unaware or face barriers to applying. This development represents an important step towards automatic tax filing for low-income earners, a policy VCC has advocated for. [1] However, this legislation currently targets those with simple tax returns. [2] To ensure that more people receive the benefits to which they are entitled, eligibility criteria should be expanded over time to capture a broader range of taxpayers. An estimated $1.7–$1.9 billion in federal benefits go unclaimed each year due to barriers that eligible people face when filing. [3] These unclaimed benefits could help low-income Canadians access basic needs.
Community Courts
At the municipal level, Calgary’s budget was approved in December 2025 and included several items relevant to poverty reduction. Specifically, Calgary City Council approved $4.9 million in funding for Community Court, a program that helps Calgarians who commit minor bylaw offences connect with supports rather than go through the traditional court system. This approach allows the justice system to focus on more serious cases and can help reduce court backlogs. VCC commends the City's continued commitment to Community Court, as fines for minor offences increase financial pressures for people living on a low income, often entrenching the impacts of poverty, while doing little to make the city safer. Additionally, Council allocated $5.7 million for outreach and day spaces for those experiencing homelessness. [4] Providing people experiencing homelessness with safe, supportive places to go is a key element to improving safety in our downtown core and a key policy for which VCC has advocated. [5] VCC also appreciates the City’s continued investment in affordable housing and transit—two policy areas of key importance to those experiencing poverty.
Canada Groceries and Essentials Benefit
In January 2026, the Federal Government announced the Canada Groceries and Essentials Benefit, which increases GST rebate amounts by 25% over the next five years, with a one-time 50% increase in 2026. The policy aims to help low-income Canadians afford groceries and other essentials and will provide effective support as Alberta food prices are expected to rise above the forecasted national average of 4% to 6%. [6,7] VCC was pleased to see this announcement and has called on all orders of government to enact measures to address the growing crisis in food affordability. [8]
Accompanying the announcement of the Canada Groceries and Essentials Benefit, the federal government also announced further measures to manage food price inflation, including requirements for retailers to use per-unit food pricing to promote competition, additional funding for the Competition Bureau to enforce competition regulations in Canada’s grocery market, and measures to increase resiliency to disruptions in Canada’s food supply network. [9] VCC supports the Federal Government’s premise and has advocated that increased competition among grocery retailers is needed to help remedy Canada’s relatively high food prices. [10] Given that 31.9% of Calgarians reported some degree of food insecurity in 2023, these measures are urgently needed within our city. [11]
In addition to the recent federal and municipal announcements detailed above, the provincial Government has also announced key poverty-related initiatives in its Fiscal 2025/26 budget in February 2025, including support of Calgary’s low-income transit pass — a program that VCC advocates for—and more funding for affordable housing. [12] VCC welcomes funding for affordable housing, as rent prices remain a heavy burden on Calgarians despite the recent market stabilization.
All orders of government played a role in these steps toward poverty-reduction in Calgary. As we look ahead, key policy milestones that impact the well-being of Calgarians are on the horizon, including a new public hearing on the future of city-wide rezoning in Calgary, and the rollout of Alberta’s new disability income support stream, the Alberta Disability Assistance Program (ADAP). VCC continues to monitor and advocate on the impacts of these policies on poverty reduction in Calgary.
[1] Calgary Social Policy Collaborative. (December 10, 2025). The State of Gig Work in Alberta: Trends, Challenges, and Solutions. https://enoughforall.ca/articles/new-research-sheds-light-on-albertas-gig-economy. (Accessed: January 29, 2026).
[2] Government of Canada. (November 4, 2025). Canada Strong Budget 2025. https://budget.canada.ca/2025/report-rapport/pdf/budget-2025.pdf. (Accessed: January 29, 2026).
[3] Maytree. (January 26, 2026). How Deemed Tax Filing Can Make Claiming Benefits Easier for People with Low Incomes. How deemed tax filing can make claiming benefits easier for people with low incomes. (Accessed: February 2, 2026).
[4] City of Calgary. (Approved Dec 3, 2025). Budget 2026. https://www.calgary.ca/our-finances/2026-budget.html. (Accessed: February 2, 2026).
[5] Vibrant Community Calgary. (May 28, 2024). No Place to Go. https://enoughforall.ca/resources/no-place-to-go. (Accessed: January 30, 2026).
[6] Dalhousie University. (March 3, 2025). Canada's Food Price Report 2026. https://www.dal.ca/sites/agri-food/research/canada-s-food-price-report-2026.html. (Accessed: February 2, 2026).
[7] Government of Canada. (January 26, 2026). The New Canada Groceries and Essentials Benefit. https://www.canada.ca/en/department-finance/news/2026/01/the-new-canada-groceries-and-essentials-benefit.html. (Accessed: January 29, 2026).
[8] Canada Broadcasting Corporation. (August 11, 2025). Organizations Sound Alarm as Nearly 32% of Calgarians Struggle to Afford Food. https://www.cbc.ca/news/canada/calgary/calgary-food-insecurity-1.7603978. (Accessed: January 29, 2026).
[9] Canada Broadcasting Corporation. (January 26, 2026). In Canadian Politics, A New World Order Can’t Overshadow the Price of Groceries. https://www.cbc.ca/news/politics/carney-poilievre-groceries-analysis-9.7061885. (Accessed: January 29, 2026).
[19] Government of Canada. (June 27, 2023). Canada Needs More Grocery Competition. https://competition-bureau.canada.ca/en/how-we-foster-competition/education-and-outreach/canada-needs-more-grocery-competition?utm_source=chatgpt.com. (Accessed: January 29, 2026).
[11] Enough for All. (No Date). Well-Being Dashboard. https://enoughforall.ca/well-being-dashboard. (Accessed: January 29, 2026).
[12] Vibrant Communities Calgary. (March 3, 2025). Analyzing the 2025 Alberta Budget. Analyzing the 2025 Alberta Budget. (February 2, 2026).
