Disclaimer: the following information is based on what SEIU-West found on publicly available federal government websites. This information is subject to change as it comes from outside sources. We will update this post further as information becomes available.
The Federal budget was passed in the House of Commons on Monday November 17, 2025.
What passed on Monday was a motion (called a Ways and Means Motion), “That this House approves in general the budgetary policy of the government.”
If this motion had been voted down, we would have, most likely, been thrown into a federal election campaign.
But just because it passed does not mean that the PSW Tax Credit is now in effect. That won’t happen unless and until both the House of Commons and The Canadian Senate pass Bill C-15 An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025
That Bill was introduced on November 18, 2025. Among its hundreds of provisions are the below proposed changes to the Income Tax Act. These could possibly be amended as the bill works it way through Parliament, e.g. in response to lobbying.
At this point, based on the highlighted information further down in this post, this is what looks clear:
- This benefit will not come as a separate cheque; it will be used to either increase your income tax refund (if you are otherwise getting one), or it will be used to reduce the amount of money you owe to the CRA.
- There will be a new line/form/section in everybody’s income tax form (or new set of questions on your tax software). You may have to submit a new form during tax season that your employer would have to fill out to prove that you are eligible and to show how much you made as a PSW in that tax year.
It’s worth noting that this tax credit will only apply to the 2026 to 2030 tax years as it is a temporary tax credit from the federal government for PSWs across Canada.
If you require tax advice, please reach out to a tax professional.
We are dedicated to continuing our work on this by continuing to engage our provincial government on positive retention initiatives like this one for all SEIU-West members.
If you're interested in the particulars of the Bill and its provisions regarding the PSW tax credit, keep reading:
SUBDIVISION A.7
Personal Support Workers Tax Credit
122.93 (1) The following definitions apply in this section.
eligible health care establishment means a hospital, nursing care facility, residential care facility, community care facility for the elderly, home health care establishment and similar regulated health care establishments. (établissement de soins de santé admissible)
eligible personal support worker, for a taxation year, means an individual
(a) who performs duties of employment in the capacity of a personal support worker for an eligible health care establishment during the taxation year (in this definition referred to as the “duties for the year”);
(b) who, in the course of performing the duties for the year, ordinarily provides one-on-one care and essential support to optimize and maintain another individual’s health, well-being, safety, autonomy and comfort consistent with that other individual’s health care needs as directed by a regulated health care professional or a provincial or community health organization; and
(c) whose main duties of employment, in respect of the duties for the year, include assisting individuals with activities of daily living and mobilization. (préposé aux services de soutien à la personne admissible)
return of income, filed by an eligible personal support worker for a taxation year, means a return of income (other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(e) or subsection 150(4)) that is required to be filed for the taxation year or that would be required to be filed if the eligible personal support worker had tax payable under this Part for the taxation year. (déclaration de revenu)
yearly eligible remuneration of an individual for a taxation year means the total of all amounts, each of which
(a) would be, in the absence of section 8 and paragraph 81(1)(a), the individual’s income for the taxation year from an office or employment as an eligible personal support worker for an eligible health care establishment in a province, other than duties performed in Newfoundland and Labrador, the Northwest Territories and British Columbia; and
(b) is certified by the individual’s employer in the prescribed form and manner to be an amount that satisfies the description under paragraph (a). (rémunération annuelle admissible)
Deemed overpayment — yearly eligible remuneration
(2) An eligible personal support worker, for a taxation year that begins after 2025 and that ends before 2031, who files a return of income for the taxation year and makes a claim under this subsection, is deemed to have paid, at the end of the taxation year, on account of tax payable under this Part for the taxation year, an amount equal to the lesser of
(a) $1,100, and
(b) 5% of the eligible personal support worker’s yearly eligible remuneration for the taxation year.
Effect of bankruptcy
(3) For the purpose of this Subdivision, if an individual becomes bankrupt in a particular calendar year
(a) despite subsection 128(2), any reference to a taxation year of the individual (other than in this subsection) is deemed to be a reference to the particular calendar year; and
(b) the individual’s yearly eligible remuneration for the taxation year ending on December 31 of the particular calendar year is deemed to include the individual’s yearly eligible remuneration for the taxation year that begins on January 1 of the particular calendar year.
Special rules in the event of death
(4) For the purpose of this Subdivision, if an individual dies before the end of a calendar year, any return of income filed by a legal representative of the individual is deemed to be a return of income filed by the individual.
Source for this information can be found here.