Automatic Federal Benefits: A joint submission to the Department of Finance Canada

Each year, an estimated $1.7–$1.9 billion in federal benefits goes unclaimed, largely because people are unable to file taxes. Tax filing is the gateway to benefits people rely on for housing, food, and other basic needs. When barriers prevent people from filing, they are effectively shut out of Canada’s income security system.

In this submission to the Department of Finance Canada’s consultation on automatic federal benefits, Maytree, Momentum, and Prosper Canada welcome the government’s decision to allow deemed tax filing—where the Canada Revenue Agency automatically files a tax return for eligible people with low incomes.

The submission explains why deemed filing matters, what’s at stake for people living with low incomes, and why the federal government should change its proposed design for automatic federal benefits to expand eligibility and provide benefits in a timely manner.

What the submission covers

• Why tax filing is the backbone of income security in Canada, and how gaps in filing perpetuates poverty
• The limits of current approaches (SimpleFile, volunteer tax clinics, pre-filled returns) and why they are not enough on their own
• Why deemed filing is a necessary paradigm shift, especially for people receiving social assistance
• Concrete recommendations urging a more ambitious approach, including expanded and continuous eligibility, more timely benefits, and accelerated implementation
• The importance of data sharing with provinces and territories to unlock automatic access to benefits
• The ongoing role of community organizations in ensuring accuracy, trust, and accessibility

Grounded in lived experience and frontline expertise, this submission emphasizes that equitable access to benefits should not depend on someone’s ability to navigate complex systems.

Read the full joint submission here.

Here is our ask to you:

1. Email the Department of Finance to indicate your support for this direction by downloading and submitting this joint consultation submission or submit your own perspective by January 30th, 2026
2. Send to: autotaxfiling-autoimpot@fin.gc.ca A short note is powerful. A few sentences from trusted partners can help turn a good policy signal into real, scaled access to benefits.