Ottawa’s ‘Axe the Fax’ Program Shut Down After Nearly $300 Million in Federal Spending

by | Sep 2, 2026 23:21 | National

PrescribeIT was intended to modernize prescription delivery across Canada. After years of development and limited adoption, the national e-prescribing service has been discontinued, prompting new questions about how the money was spent.

A federal effort to replace fax machines in Canada’s health-care system has come to an end after nearly a decade, with the program having received close to $300 million in federal funding and accounting for less than five per cent of prescriptions nationwide.

The program, known as PrescribeIT, was created to provide doctors and other prescribers with a secure electronic method of sending prescriptions directly to pharmacies. Instead of printing, faxing or manually entering prescriptions, the system was intended to allow information to move electronically from a health-care provider’s electronic medical record into pharmacy software.

The goal was straightforward: modernize a system that had become increasingly out of step with the rest of the digital economy.

Instead, PrescribeIT was shut down on May 29, 2026, after failing to achieve widespread adoption.

From a $40-million plan to nearly $300 million

PrescribeIT was announced in 2016 with an initial federal commitment of approximately $40 million. Canada Health Infoway, a federally funded not-for-profit organization, subsequently developed and operated the service.

Over the following decade, federal spending grew dramatically.

Health Canada has acknowledged federal spending of more than $290 million on the program, while some parliamentary discussions have referred to the figure as approximately $300 million.

The investment was intended to create a national digital infrastructure for prescriptions, with the long-term expectation that the system would eventually become financially self-sustaining.

That did not happen.

By the time PrescribeIT was discontinued, fewer than five per cent of prescriptions were being processed through the platform.

According to testimony before the House of Commons Standing Committee on Health, approximately 11 million prescriptions were fulfilled using PrescribeIT in the previous year — but that represented only about five per cent of prescriptions across Canada.

The vast majority continued to move through traditional systems, including fax and paper.

Why did adoption remain so low?

The problems surrounding PrescribeIT appear to have been more complicated than simply convincing doctors to stop using fax machines.

Canada Health Infoway’s leadership told parliamentary committees that adoption among physicians and other prescribers was lower than expected. The Canadian Pharmacists Association also raised concerns about the financial model surrounding the service.

In 2025, pharmacies began being charged 20 cents per prescription processed through PrescribeIT after federal funding was reduced.

Rather than encouraging greater participation, the fee became another source of concern for pharmacies already operating under financial pressure.

The program also faced the challenge of convincing provinces and health-care organizations to take responsibility for its continuing operating costs.

Ultimately, provinces did not take on those costs, and Canada Health Infoway announced that PrescribeIT would be discontinued.

The organization said it would instead move toward an open-standards approach, rather than continuing to operate a centralized national network.

Telus Health and the question of intellectual property

Another issue attracting parliamentary attention is the relationship between Canada Health Infoway and TELUS Health, which served as the program’s primary technology vendor.

Approximately $98 million reportedly went to Telus Health in connection with the program. Parliamentary and other reporting has also raised questions about ownership of the intellectual property developed through the project.

One report cited by parliamentary watchdogs says Telus retained approximately 85 per cent of the underlying intellectual property, while the federal government did not retain ownership of the platform itself.

That arrangement has prompted MPs to ask a basic question: after hundreds of millions of dollars in public funding, what assets ultimately remained under public control?

Those questions remain part of the broader examination of PrescribeIT.

Parliamentary scrutiny increases

The program’s failure has attracted increasing attention on Parliament Hill.

Members of the House of Commons Standing Committee on Health have sought access to documents relating to the program, including contribution agreements, information about intellectual property, annual adoption figures and revenue generated by the prescription fees.

During committee proceedings, MPs questioned Canada Health Infoway executives about the program’s cost, performance and governance.

Conservative MPs have also called for an investigation by the Auditor General, arguing that Canadians deserve a clearer accounting of how the money was spent and why the program failed to achieve its central objective.

The political debate has become particularly contentious because the program was ultimately unable to deliver the nationwide transition away from fax-based prescriptions that it was created to achieve.

An audit is now being pursued

The federal government announced in June that it would conduct an audit and broader review of Canada Health Infoway.

The review is expected to examine not only the PrescribeIT program but also issues involving governance, operations and executive compensation.

On August 26, the federal government posted a request for proposals seeking an outside contractor to audit contribution funding provided to Canada Health Infoway.

The proposed audit is expected to continue through the end of 2026.

That means Canadians may have to wait considerably longer for a complete accounting of the program’s finances and the reasons behind its failure.

The bigger issue: modernizing health care

The failure of PrescribeIT raises questions that extend beyond fax machines.

Electronic prescriptions are hardly a new concept. Digital prescribing systems are used in health-care systems around the world, making Canada’s continued reliance on paper and fax particularly notable.

For patients, the technology behind a prescription may seem like a minor detail. But outdated communication systems can contribute to delays, transcription problems and additional administrative work for health-care professionals.

That makes the objective behind PrescribeIT difficult to dispute.

The question is whether the federal government chose the right approach — and whether the project was adequately managed once problems with adoption became apparent.

After nearly a decade and hundreds of millions of dollars in public spending, the country has effectively returned to the starting point in many parts of the health-care system.

The federal program intended to “axe the fax” is gone, while faxing remains.

For Canadians watching the cost of government programs, the next important question is no longer whether the technology can replace the fax.

It is why nearly $300 million was spent attempting to do so without achieving widespread adoption — and what can be learned before another national health-care technology project is launched.

The forthcoming audit should provide at least some of those answers.

GoSayward.com has summarized and independently contextualized reporting and publicly available parliamentary records concerning the PrescribeIT program. Claims regarding political responsibility and alleged misconduct remain matters of debate and should not be treated as established findings unless supported by evidence.

Sources: Parliamentary records and reporting on Canada Health Infoway and PrescribeIT, including House of Commons committee proceedings and recent reporting on the federal audit.

Northern Lights Could Join a Nearly-Blood-Red Lunar Eclipse Across Canada Tonight

by | Aug 27, 2026 09:37 | National

Skywatchers across Canada could be in for an unusually dramatic night as two very different celestial events potentially unfold at the same time: a deep partial lunar eclipse and an outburst of the northern lights.

On the night of Thursday, August 27, into the early hours of Friday, August 28, the full Sturgeon Moon will move through Earth’s shadow. At the eclipse’s maximum, roughly 96 per cent of the Moon will be immersed in Earth’s darkest shadow, leaving only a small portion of the lunar surface directly illuminated.

At the same time, increased activity from the Sun is creating the possibility of auroras across much of Canada.

If skies are clear and geomagnetic activity develops as forecast, observers could potentially see a reddish, eclipsed Moon in one part of the sky while green, red or purple auroral light shimmers elsewhere.

A nearly total “blood moon”

Although this week’s event is technically a partial lunar eclipse, it will be an unusually deep one.

At maximum eclipse, about 96 per cent of the Moon will be inside Earth’s umbra — the darkest central portion of the planet’s shadow. That leaves only a thin section of the lunar disk directly illuminated by sunlight.

As the Moon moves deeper into the umbra, much of its surface can take on a copper, orange or reddish appearance. The effect happens because some sunlight passes through Earth’s atmosphere before reaching the Moon. Earth’s atmosphere scatters more of the shorter blue wavelengths, while allowing more red and orange light to continue through.

That’s the same basic phenomenon responsible for the reddish appearance of a total lunar eclipse.

This event doesn’t quite reach totality, but the difference will be difficult to appreciate at a glance. With almost the entire lunar disk immersed in Earth’s shadow, the Moon should have a distinctly different appearance from an ordinary full Moon.

The event is also significant because it will be the deepest partial lunar eclipse visible from North America for several years. A total lunar eclipse on New Year’s Eve in 2028 will provide the next major opportunity for a fully eclipsed Moon.

The Sun is adding another ingredient

The lunar eclipse isn’t the only reason to look up.

Solar activity has increased in recent days, with a powerful solar flare from sunspot region 4513 accompanied by coronal mass ejections (CMEs). A CME is a massive cloud of magnetized plasma expelled from the Sun that can travel through interplanetary space and interact with Earth’s magnetic field.

A separate high-speed stream of solar wind is also expected to increase geomagnetic activity.

Those disturbances are important for aurora watchers because they can energize particles trapped around Earth and drive them into the upper atmosphere. When those particles collide with atmospheric gases, they produce the glowing curtains and arcs known as the aurora borealis.

NOAA’s Space Weather Prediction Center has forecast the possibility of minor geomagnetic storm conditions around Thursday, with stronger G2-level conditions possible Friday as additional solar activity reaches Earth.

Forecasts are never a guarantee of an aurora display, however. The strength and timing of the incoming solar material — particularly the orientation of its magnetic field — can determine whether a storm produces a spectacular show or a much more subdued display.

Why the eclipse could actually help aurora watchers

There is an interesting twist to having the northern lights appear during a full Moon.

Normally, a bright full Moon can make an aurora harder to see. The Moon illuminates the surrounding sky, reducing the contrast between relatively faint auroral light and the darkness around it.

Tonight, however, the Moon will spend much of the most interesting part of the evening moving through Earth’s shadow.

As the lunar disk darkens, the surrounding sky becomes noticeably darker. That could improve the contrast between the aurora and the night sky, particularly for observers under otherwise dark conditions.

It doesn’t make an aurora more likely to occur. Instead, it may make an existing aurora easier to notice.

That distinction is important because an aurora forecast and an eclipse forecast are describing two completely independent phenomena.

Where could Canadians see the northern lights?

The aurora’s visibility will depend heavily on how far south geomagnetic activity reaches.

Northern and central Canada generally have the best odds, while a stronger-than-expected geomagnetic response could push the auroral oval farther south.

Recent forecasts have indicated the possibility of aurora visibility extending into portions of the northern United States, which means many Canadians farther south could also have an opportunity if the storm strengthens.

For Canadian observers, the best strategy is to get away from city lights and find a location with a broad, unobstructed view toward the northern horizon.

And don’t rely exclusively on what the aurora looks like to the naked eye.

A camera or modern smartphone can sometimes record colours and structure that are difficult to see directly, particularly when the aurora is faint. Night or astrophotography modes can make a substantial difference.

The eclipse won’t look identical across Canada

Where you live will make a significant difference.

Eastern Canada has an advantage because the Moon will already be above the horizon as the eclipse progresses through its most dramatic stages.

In much of western Canada, however, the Moon rises while the eclipse is already underway.

For example, in British Columbia the Moon rises shortly before the eclipse’s darker stages, meaning observers there won’t see the entire event from beginning to end. The same issue affects parts of Alberta and Saskatchewan.

The maximum eclipse occurs at different local times across the country:

– British Columbia: about 9:12 p.m. PDT

– Alberta: about 10:12 p.m. MDT

– Saskatchewan: about 10:12 p.m. CST

– Manitoba: about 11:12 p.m. CDT

– Ontario and Quebec: about 12:12 a.m. EDT

– Atlantic Canada: about 1:12 a.m. ADT

– Newfoundland: about 1:42 a.m. NDT

The exact visibility also depends on the Moon’s position above the local horizon and, of course, the weather.

How to watch both events

You don’t need specialized astronomical equipment.

For the lunar eclipse, simply find a location with a clear view of the Moon. Lunar eclipses are safe to observe directly with the naked eye. Binoculars or a telescope can reveal additional detail in the Moon’s changing surface and shadow.

For the aurora, darkness is much more important.

Move away from bright urban areas if possible and give your eyes time to adjust. Look toward the northern sky, although a strong aurora can spread much farther across the sky.

Ideally, choose a location where you can see both a large portion of the sky and the horizon rather than standing beneath trees or beside tall buildings.

And keep checking the forecast throughout the evening.

Auroral activity can change rapidly, so a forecast several hours earlier doesn’t necessarily tell you what will happen when you actually step outside.

A rare combination — but don’t expect a guaranteed spectacle

The most important word for tonight is potential.

The lunar eclipse is predictable: Earth’s shadow will cross the Moon on schedule.

The aurora is different.

Solar-wind conditions can change quickly, and even when a geomagnetic storm is forecast, the resulting aurora may be faint, localized or occur at a different time than expected.

That makes the possibility of seeing both phenomena together especially intriguing.

At maximum eclipse, the Moon could appear as a dark copper-red disk, while an auroral glow develops along the northern horizon. In a particularly favourable location, a camera could potentially capture both phenomena in the same wide-angle image.

Even if the northern lights don’t cooperate, the eclipse itself is worth watching.

And if the geomagnetic storm arrives at the right time, Thursday night could offer something considerably more unusual: a darkened, reddish Moon sharing the sky with the northern lights.

For anyone with clear skies across Canada, it may be worth stepping outside and looking up.

Canadian Consumer Insolvencies Reach Highest Level Since 2009

by | Aug 22, 2026 01:41 | National

Canadian households are continuing to face mounting financial pressure, with new federal data showing consumer insolvencies have reached their highest quarterly level since the aftermath of the 2008 financial crisis.

More than 37,500 Canadian consumers filed for insolvency during the second quarter of 2026, according to the latest figures from the Office of the Superintendent of Bankruptcy (OSB).

The 37,523 consumer insolvencies recorded between April and June represented a 6.9% increase from the same period in 2025 and a 1.1% increase from the first quarter of this year. It was the highest quarterly total since 2009.

That works out to approximately 412 consumer insolvency filings every day, or roughly 17 every hour.

The figures provide fresh evidence that a growing number of Canadians are struggling to keep up with household debt, even as some broader economic indicators have shown signs of improvement.

Bankruptcy Is Only Part Of The Picture

The term “bankruptcy” is frequently used to describe the current increase, but the federal data distinguishes between bankruptcies and other forms of insolvency.

Of the 37,523 consumer insolvencies recorded in the second quarter, approximately 8,600 were actual bankruptcies. The majority involved consumer proposals, which allow individuals to negotiate a formal settlement with creditors while avoiding bankruptcy.

The distinction is significant. The current pace of roughly 412 consumer insolvencies per day should not be interpreted as 412 people declaring bankruptcy every day.

Nevertheless, the increase in both categories points to growing financial stress.

Federal statistics show that consumer bankruptcies were up 10.3% year-over-year in the second quarter, while consumer insolvencies overall increased 6.9%.

British Columbia Among The Harder-Hit Provinces

British Columbia is experiencing an especially sharp increase.

OSB data shows 1,506 consumer insolvencies were recorded in B.C. in June 2026, up 17.2% from June 2025.

Over the 12 months ending June 30, B.C. recorded 16,609 consumer insolvencies, an increase of 14.3% compared with the previous 12-month period.

That total included 2,712 consumer bankruptcies, up 8.5%, and 13,897 consumer proposals, up 15.5%.

B.C.’s increase was considerably larger than the national 12-month increase of 5.9%.

For residents of communities throughout the province, including smaller communities on Vancouver Island, the numbers offer a broader indication of the financial pressures being experienced by households.

Debt And The Cost Of Living

The rise in insolvencies comes against a backdrop of elevated household debt.

The household debt burden has remained substantial, while Canadians continue to contend with housing, food, transportation, insurance and other everyday expenses.

A report published earlier this year citing TransUnion data put Canadian household debt across credit products at approximately $2.6 trillion at the end of 2025. The same report noted that mortgage delinquency rates had risen to 0.24%, their highest level since 2021.

The Bank of Canada has also acknowledged that financial stress among households has increased, although it says the overall Canadian financial system remains resilient.

In its 2025 Financial Stability Report, the central bank said household debt relative to disposable income had declined over the previous year, but warned that some heavily indebted households remained vulnerable to economic shocks.

Mortgage Payments Are Still A Concern

Mortgage renewals remain another potential source of pressure for Canadian households.

Many borrowers who obtained mortgages at exceptionally low interest rates during the pandemic have been required to renew at higher rates. While interest rates have subsequently fallen from their peak, some homeowners are still facing substantially higher borrowing costs than they were accustomed to.

The Bank of Canada has said mortgage holders have generally shown resilience, but some households have had to reduce spending, extend amortizations or make other financial adjustments to accommodate higher payments.

The pressure is not limited to mortgage holders. Canadians carrying credit-card balances, lines of credit, vehicle loans and other forms of consumer debt can also be affected when household budgets become increasingly constrained.

The Trend Was Already Visible Earlier In 2026

The second-quarter figures build on an increase that was already evident during the first three months of the year.

In the first quarter, 37,121 Canadian consumers filed for insolvency, an 8.5% increase from the same quarter of 2025 and the highest quarterly total since 2009 at the time.

The Canadian Association of Insolvency and Restructuring Professionals described the result as equivalent to approximately 17 consumer insolvency filings every hour.

By the end of June, the number had climbed again.

The federal data shows that consumer insolvencies during the 12 months ending June 30 increased 5.9% from the previous year. Consumer bankruptcies rose 8.4%, while consumer proposals increased 5.2%.

Businesses Face Pressure Too

Households are not the only borrowers experiencing financial strain.

During the first quarter of 2026, 1,232 Canadian businesses filed for insolvency, according to figures cited by Rebel News. Business insolvencies were lower than a year earlier but increased nearly 10% from the preceding quarter.

The picture is mixed in the latest annual data.

OSB figures show business insolvencies declined 9.7% during the 12 months ending June 30 compared with the previous year. However, some sectors continued to experience increases, including accommodation and food services, mining, quarrying and oil and gas extraction, and management of companies and enterprises.

Separate analysis of May data found 405 business insolvency filings that month, the second-highest May total in more than a decade.

Not Everyone In Financial Trouble Is Filing

The official insolvency numbers also don’t capture every financially distressed household or business.

An individual can be struggling with debt without filing for bankruptcy or a consumer proposal. Similarly, businesses can close, liquidate assets or simply wind down without entering formal insolvency proceedings.

That means insolvency statistics provide an important measure of financial distress, but they are not a complete accounting of every Canadian household experiencing financial hardship.

The Bank of Canada has likewise emphasized that financial stress remains concentrated among certain households rather than representing a systemic failure of Canada’s banking system.

A Warning Sign For Canadian Households

The latest numbers do not mean Canada is experiencing another 2008-style financial crisis.

Canada’s banking system remains substantially more resilient than it was during previous periods of severe financial stress, and the vast majority of Canadians are continuing to meet their debt obligations.

But the insolvency figures are nevertheless significant.

With 37,523 consumer insolvencies in just three months, the country is seeing its highest quarterly level since 2009. B.C. is recording an even faster increase than the national average, while consumer bankruptcies are rising at a faster rate than overall consumer insolvencies.

For households already operating with little financial room, continued pressure from debt payments and the cost of everyday necessities could make the next several months increasingly difficult.

The numbers suggest that while Canada’s broader financial system may remain stable, a growing number of individual Canadians are finding that their own household finances are anything but comfortable.

Mortgage Renewals Put Pressure On Canadian Homeowners

by | Aug 22, 2026 01:23 | National

Thousands of Canadian homeowners are entering another important phase of the mortgage renewal cycle as borrowers who secured historically low interest rates during the COVID-19 pandemic face the prospect of higher monthly payments.

The Bank of Canada says about 60% of outstanding Canadian mortgages were expected to renew during 2025 and 2026. Its analysis found that roughly 60% of those renewing could face higher payments, although the impact varies considerably depending on the type and timing of the mortgage.

The issue is particularly relevant for homeowners who locked in five-year fixed rates in 2021, when borrowing costs were near historic lows.

At the time, the Bank of Canada’s overnight rate was just 0.25%. Mortgage rates subsequently rose sharply beginning in 2022 as the central bank increased interest rates to combat inflation.

Final Group Of Ultra-Low-Rate Mortgages

Royal LePage says many homeowners who took advantage of exceptionally low rates during the pandemic have already gone through the renewal process, but a significant group remains.

The company’s recent survey found that 38% of Canadians with a mortgage on their primary residence expect their monthly payment to increase when they renew. Of those, 26% anticipate a slight increase while 12% expect a significant increase.

Another 31% expect their payment to remain roughly unchanged, while 17% anticipate a decrease.

Expectations differ by region. In British Columbia, 37% of respondents said they expect their mortgage payment to increase at renewal.

The concern is more pronounced in areas where mortgage balances are larger. Royal LePage reported that 45% of respondents in Vancouver said they were more anxious about their upcoming renewal than their previous renewal.

Bank Of Canada Sees Continued Payment Increases

The Bank of Canada’s latest financial stability assessment indicates that the mortgage renewal process is continuing to affect borrowers, but so far it has not resulted in a broad wave of mortgage defaults.

The central bank reported that many homeowners who borrowed at very low pandemic-era rates renewed at higher rates during 2025 and the first half of 2026. Most borrowers have been able to manage the higher payments, and lenders have not experienced a broad increase in mortgage losses.

The Bank estimates that borrowers with five-year fixed-rate mortgages renewing in 2026 could see their payments rise by an average of about 20%, although individual circumstances vary.

Its 2026 Financial Stability Report also indicates that some of the final five-year fixed mortgages taken out during the pandemic will renew over the coming year, with average payment increases of approximately 15%.

Higher Rates, But Fewer Defaults Than Feared

Despite concerns about a major wave of mortgage defaults, Canadian homeowners have generally demonstrated an ability to adjust to higher borrowing costs.

The Bank of Canada says mortgage holders have benefited from income growth, accumulated home equity and the mortgage stress test that was in place when many pandemic-era mortgages were issued. More than 90% of borrowers who renewed during the past year did so at rates below the rates they had been required to qualify for under the stress test.

Homeowners are also responding by cutting discretionary spending, extending amortization periods, seeking additional household income or changing other financial priorities.

For some households, however, a higher mortgage payment can significantly reduce the amount of money available for groceries, utilities, transportation, savings and other expenses.

What It Means For British Columbia

The renewal issue is particularly significant in British Columbia, where homeowners in some markets carry comparatively large mortgages.

Royal LePage reported that 37% of British Columbia respondents expect their mortgage payment to increase at renewal, while 45% of Vancouver respondents said they feel more anxious about their upcoming renewal than they did previously.

For homeowners outside the province’s most expensive markets, the impact can be different because mortgage balances tend to be lower. Nevertheless, even a moderate increase in interest costs can put pressure on household budgets.

The Bank of Canada expects the mortgage renewal cycle to continue working its way through the system into 2027. By the second half of 2027, nearly all mortgage holders facing large payment increases are expected to have renewed.

For homeowners approaching renewal, the coming months may therefore be less about a sudden mortgage crisis and more about adjusting household finances to a borrowing environment that is significantly different from the one many Canadians experienced during the pandemic.

For Canadian homeowners, the era of ultra-low mortgage rates may be ending — but the financial consequences of that era are still being felt.

Canada Once Called World’s Best Prepared For Pandemic, Declassified Records Show

by | Aug 16, 2026 21:37 | National

Newly declassified federal cabinet records show that Canadian officials were told more than two decades ago that Canada was the world’s best-prepared country for a pandemic.

The assessment was recorded in confidential cabinet minutes from February 10, 2005, following the 2003 SARS outbreak. According to the records, the minister responsible for public health told cabinet that the World Health Organization considered Canada the best prepared among countries for pandemic risk.

The claim came shortly after Ottawa created the Public Health Agency of Canada in 2004, in response to lessons from the SARS outbreak, which killed 44 Canadians.

The newly released records show that federal officials were working on a national pandemic strategy that included vaccine development and testing, antiviral stockpiles, disease surveillance, emergency preparedness and public communications. Cabinet also discussed business-continuity plans in the event that a pandemic left large numbers of workers unable to report for duty.

By September 2005, cabinet was discussing how the government could reassure Canadians that emergency protocols were in place. Officials also emphasized training and exercises intended to identify weaknesses in the country’s pandemic response.

The records have drawn renewed attention because of what happened when COVID-19 arrived in 2020.

A 2024 report from the Public Health Agency of Canada acknowledged that the agency was “not as prepared as it could have been” to meet provincial and territorial demand for routine medical countermeasures. The report pointed to unresolved problems with existing systems and practices.

Other federal reviews and assessments have also identified significant weaknesses within the agency’s pandemic preparedness. According to reporting based on federal records, a 2023 Health Department briefing identified more than 21 audits, evaluations and reports containing critical weaknesses and gaps.

The contrast between the 2005 assessment and the federal government’s later experience with COVID-19 raises questions about how effectively the preparedness measures developed after SARS were maintained, tested and updated over the following 15 years.

The declassified records provide a snapshot of Ottawa’s confidence in Canada’s pandemic preparations before the country faced a major pandemic in practice.

In 2005, federal officials were telling cabinet that Canada was among the world’s most prepared nations.

By the time COVID-19 arrived, federal officials were acknowledging that significant preparedness gaps remained.

Sources: Blacklock’s Reporter and Rebel News, based on newly declassified federal cabinet records.

Canadian Families Now Spend More On Taxes Than Basic Necessities, New Study Finds

by | Aug 16, 2026 06:19 | National

Canadian families are spending a larger share of their income on taxes than on some of the most basic household necessities, according to a new Fraser Institute study examining the tax burden over more than six decades.

The 2026 edition of the Canadian Consumer Tax Index estimates that the average Canadian family earned $121,111 in 2025 and paid $50,721 in total taxes. That represents 41.9 per cent of household income.

By comparison, the study estimates that housing, food and clothing together accounted for 36 per cent of the average family’s income.

The Fraser Institute’s calculation includes considerably more than personal income tax. Its measure incorporates federal, provincial and municipal taxes, including payroll, sales, property, fuel, vehicle, import and other taxes.

The report says the shift is particularly striking when compared with 1961.

At that time, the average Canadian family earned $5,000 and paid $1,675 in taxes, equivalent to 33.5 per cent of income. Basic necessities, meanwhile, consumed 56.5 per cent of family income.

Since then, the institute calculates that the average family’s total tax bill has increased by 2,928 per cent. Shelter costs increased 2,349 per cent over the same period, while food costs rose 952 per cent and clothing costs increased 526 per cent. The Consumer Price Index increased 946 per cent.

The findings come as affordability remains a major concern for Canadian households. Statistics Canada reported that the median after-tax income for Canadian families reached $108,900 in 2024, while 24 per cent of Canadians lived in households that experienced some form of food insecurity that year.

Questions About Ottawa’s Investment Plans

The tax findings also come amid debate over the federal government’s plans to invest billions of dollars in the economy through the new Canada Strong Fund.

Prime Minister Mark Carney announced the fund in April as Canada’s first national sovereign wealth fund. Ottawa plans to provide an initial $25 billion and have the fund invest alongside private-sector investors in areas including energy, critical minerals, agriculture, infrastructure and other strategic industries.

The government says the fund will operate at arm’s length from Ottawa and be managed by a professional board and chief executive. It also intends to create a retail investment product allowing Canadians to invest directly in the fund.

Critics, however, have raised concerns about the fund’s structure and the use of borrowed money.

A report from the Montreal Economic Institute argues that the Canada Strong Fund bears similarities to the United Kingdom’s National Wealth Fund, an initiative with which Carney was involved before becoming Canada’s prime minister.

According to the report, the British fund has recorded a cumulative return of minus 24.9 per cent over its first two years of operation and reported losses of £152.2 million in the most recent year cited. The report also says it has fallen short of its target for attracting private investment.

The analysis argues that government-backed investment funds can face risks when political priorities influence investment decisions rather than conventional profit-and-loss considerations.

The federal government maintains that the Canada Strong Fund is designed to operate on a commercial basis and generate market-rate returns for Canadians.

For Canadian households, the combination of rising tax obligations, housing costs and other living expenses leaves a broader question about how much of each additional dollar earned is available for everyday spending.

The Fraser Institute study’s central finding is that the balance between taxation and basic household necessities has changed dramatically since the 1960s, with taxes now representing the largest of the two categories for the average Canadian family.