By Régine Cléophat, Analyst, Office of the Parliamentary Budget Officer, previously held various teaching assistant positions at the undergraduate and graduate levels at HEC Montréal.
A new Parliamentary Budget Officer estimate examines the federal government’s plan to automatically file or pre-fill tax returns for some low-income Canadians. The goal is to help people who do not normally file taxes access benefits such as the Canada Groceries and Essentials Benefit, Canada Workers Benefit and Canada Child Benefit. The PBO estimates that the measure will cost $429 million over five years, including $342 million in additional benefit payments and $87 million in administrative costs.
The reform could reduce paperwork and connect eligible people with an average of roughly $2,200 to $2,400 a year in combined benefits. However, its initial reach is small: the CRA plans to begin with 3,000 non-filers and eventually serve 50,000 annually. Historical research suggests that millions of working-age Canadians may not file tax returns, meaning many eligible people could remain outside the system.
The PBO therefore presents automatic filing as a promising step but raises an important question about scale. Its success will depend on how quickly the CRA expands the program, how it reaches people without online accounts or stable contact information, and whether people with more complicated tax circumstances can eventually be included.
The report was published on the PBO website on June 18, 2026.
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