The federal government has announced new affordability measures designed to help Canadians manage rising grocery and essential living costs. The Canada Groceries and Essentials Benefit introduces a 25% increase to the Goods and Services Tax (GST) credit over the next five years, along with a one‑time 50% top‑up beginning in 2026. These changes are expected to provide direct financial support to more than 12 million Canadians, including families and individuals dealing with continued price pressures.

In addition to income support, the government announced several initiatives aimed at strengthening Canada’s food system and addressing the root causes of cost pressures.

Initiatives include:

• $500 million to help businesses manage supply chain disruptions without passing additional costs on to consumers
• A $150 million Food Security Fund to support small‑ and medium‑sized enterprises and related organizations
• Immediate expensing for greenhouse buildings, encouraging investment and expansion in controlled‑environment food production (producers can write off up to $1.5 million per year for greenhouses purchased on or after Nov. 4, 2025, provided they are put into use before 2030)
• $20 million in added support for food banks through the Local Food Infrastructure Fund

Regional impact for Southwestern Ontario

As a firm deeply rooted in Southwestern Ontario, Melo LLP welcomes measures that support lower‑ and middle‑income Canadians, as well as businesses working to navigate inflationary pressures and supply chain challenges.

The introduction of immediate expensing for greenhouse buildings is especially relevant for our region. Southwestern Ontario is home to one of the most significant concentrations of greenhouse agriculture in Canada, and Melo LLP is proud to support many growers and producers across this sector. Increased tax flexibility for greenhouse investments may help operations manage costs, expand capacity and strengthen long‑term competitiveness.

A message from the firm

Mark Danelon, Chief Executive Officer of Melo LLP adds, “These measures provide welcome relief at a time when many families and businesses are navigating significant cost pressures. Support for the greenhouse sector is especially positive for Southwestern Ontario, where growers continue to invest, innovate and supply communities across the country. We are optimistic today’s announcements will help strengthen both household finances and our regional agricultural economy.”

How we can help

At Melo LLP, we will continue to monitor the implementation of these measures and assess their impact on individuals, agricultural producers and businesses across our region. Our tax and advisory teams are available to help you understand the implications of these changes, evaluate investment opportunities and plan effectively as new details emerge.

For more information or to discuss how these measures may affect your situation, please contact us.

Here to guide you through change