Automatic tax filing, affordability measures coming in budget, Carney previews

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In his first pre-budget preview, Prime Minister Mark Carney announced a series of affordability measures on Friday, making good on some spring campaign commitments ahead of the fall economic presentation.

On Friday, at a recreation centre in his Ottawa riding, Carney said the government will make tax filing easier, protect the school food program, and lower costs for families travelling over the holidays.

The event was the first, but won’t be the last time the Liberals tease out tidbits from the budget before it’s tabled, according to Finance Minister Francois-Philippe Champagne.

“There’s going to be more good news, trust me,” Champagne said. “I want Canadians to be able to understand what we’re doing… because on budget day, as you would know, there’s a lot of measures, and this one, I thought was very relevant for people to know.”

Specifically, the prime minister -- after years of the move being something Liberals have vowed to do -- is starting automatic tax filing, for some.

Starting in the 2026 tax year, the Canada Revenue Agency will be automatically filing taxes for up to 5.5 million low-income Canadians. The full scaling up of this system is expected to take until 2028.

This move is being done to ensure these Canadians receive the federal benefits they qualify for, such as the Canada Child Benefit and the GST/HST credit.

“The situation is that millions of lower income Canadians don’t file their taxes, either because they don’t have the resources to do so, or because they think that their income is too low for it to matter, and that means too often that the people who most need benefits often don’t get them,” Carney said.

Pressed later on what took the government this long to start moving on this commitment – a similar plan was promised back in the 2023 budget – the secretary of state for the CRA Wayne Long didn’t say.

“I mean, we can talk all day about why something didn’t happen in 2023 or (budget 2024). But I know certainly moving forward in this budget (2025, 2026, 2027) we have ambitious goals.”

In a statement reacting to the government’s announcement, Tax-Filer Empowerment Canada – a national association representing leader tax preparation and software firms – said the move misses the mark.

“This means taxpayers will now subsidize tax-filing for people who already have free options,” the organization said, also noting the strain CRA has been under in recent months.

School food, park pass programs extending

The federal government is also moving ahead with making the national school food program permanent. Providing meals for an estimated 400,000 children, Carney is committing to working with provinces, territories and Indigenous partners “to expand the program into more schools.”

The prime minister said the Liberals will also be advancing the funding and legislation needed to cement the program as part of Canada’s social safety net.

“Until today, this program was a pilot. It was temporary, with only three years of funding remaining, but the challenges that it addresses are essential. They’re fundamental,” Carney said.

Both of these measures were promised by the Liberals during the 2025 federal election campaign.

And, building on another electoral pledge, Carney said the federal government is renewing the “Canada Strong Pass” which lowers the cost for families to visit museums, historic sites, parks and travel.

Carney said take-up for the program this summer saw visits rise at sites nationwide, calling it “a big hit.”

“And since no one can possibly experience all that Canada has to offer in just a few short months, we’re renewing it.”

The pass will be revived starting on Dec. 12, 2025, to Jan. 15, 2026, and then again next summer.

This renewal will also allow students ages 18 to 24 travelling home for the holidays to claim a 25 per cent discount on Via Rail tickets.

Jekyll and Hyde budget?

The prime minister said these measures will be included in the Nov. 4 federal budget and will be considered “operational” rather than “capital” expenditures – a new distinction that this government intends to make in its accounting.

Anticipating more pre-budget announcements, CTV News political commentator Scott Reid said while it’s good Carney is making more of an effort to talk “kitchen table” economics, as it is top of mind for many Canadians, he thinks “it’s going to be a fascinating challenge for the government to communicate it and have it land positively with the Canadian public,” given his parallel talk about austerity.

“It’s going to be a complicated and, in some ways, contradictory exercise when it comes to communicating this budget and its measures,” Reid said.