The Government of Canada announced that the list of tax exemptions is growing to include psychotherapy counselling services. As of June 20th, 2024, some counselling therapists are now exempt from collecting GST and HST on their services. Great news for both the mental and financial lives of all Canadians!
Correlation between mental and financial health
Many studies and experts speak to the close connection between an individual’s mental health and financial health. The Government of Canada is noted as saying that those struggling financially are twice as likely to report poor overall health, and four times as likely to report suffering from sleep problems, headaches and other illnesses. Eventually, these things turn into more serious issues such as high blood pressure, heart disease, anxiety and depression. According to CBC News, people with anxiety often engage in impulsive spending to relieve their symptoms. However, overspending can cause greater financial stress, creating an unfortunate cycle of spending to feel better and then feeling bad about spending.
There’s another important way finances and mental health intertwine. To stop this cycle and reduce financial and mental stress, many Canadians would like to seek advice from mental health counsellors or therapists. Somewhat ironically, what stops them is finances. According to First Session, the price on average for a therapist in Canada can range from $100 to $200 an hour. At this price, for many Canadians, seeing a therapist is out of reach.
Benefits of making psychotherapy counselling services tax-exempt
Below are some of the main reasons why the introduction of psychotherapy counselling services to the list of tax exemptions is a small, but important, step to supporting the financial and mental health of Canadians.
Enhancing accessibility
One of the main reasons for making psychotherapy counselling services tax-free is to make them more accessible. Mental health issues can affect anyone, whether they are rich, middle-class, or poor. By removing the sales tax, more people can afford to get the help they need. This action supports Canada’s larger healthcare goal of providing extensive care for all citizens. By making important mental health services easier to access, the government is supporting everyone’s efforts to achieve mental well-being.
Reducing stigma
Another important part of the tax exemption on mental health services is fighting the stigma related to mental illness. Making psychotherapy services essential and tax-exempt sends a strong message. The message is that mental health is as important as physical health. Just like physical health, sometimes people need the support of a professional and that’s okay. This acceptance helps people feel encouraged to seek help.
Supporting mental health professionals
The tax-exempt psychotherapy counselling services also help mental health professionals. Less tax and administrative duties mean less burden on counsellors. This means it’s easier for them to keep giving top-quality care to more people at a lower cost.
Promoting preventive care
Preventive care is another key goal of the tax exemption. Early intervention in mental health issues can prevent conditions from getting worse. This leads to better long-term results for everyone.
Economic Benefits for Communities
According to statistics from The Centre for Addiction and Mental Health, one in five Canadians will experience some form of mental illness. ATB says that mental illness in Canada costs about $51 billion dollars each year in economic revenue. When psychotherapy counselling services are tax-exempt, it makes public health better and also brings economic benefits. Healthier people work more and help the economy grow. Untreated mental illnesses cause more people to be absent from work. However, with treatment, productivity can increase in different sectors. By reducing financial stress for people who need therapy but can’t afford it because of extra taxes, we can create healthier communities, which leads to stronger economies.
Final thoughts
Making psychotherapy counselling services tax-exempt creates a healthier society, both mentally and financially. This policy change offers many benefits for Canadians. It reduces out-of-pocket expenses, promotes early intervention, improves workplace productivity, lowers public healthcare costs, and enhances the overall quality of life. Investing in accessible mental health care benefits Canada’s future prosperity. It ensures that every Canadian has the chance to thrive financially and emotionally, not just survive.
