The Canada Revenue Agency (CRA) is stepping up its financial support system with increased payments for key benefits, starting next month. These changes aim to help Canadian residents manage the rising cost of living. The CRA regularly reviews and adjusts benefits each July, ensuring that financial aid aligns with the latest income data and life circumstances of recipients.
But what exactly are these benefits, and how will they impact you? Let’s cut into the details of the upcoming changes.
Canada Child Benefit
Raising children is expensive, and the CRA’s Canada Child Benefit (CCB) is here to help. This tax-free monthly payment provides financial assistance to families with children. The amount each family receives is recalculated annually in July based on the family’s adjusted net income from the previous year.
For families with children under six, the benefit will see a noticeable increase. The maximum annual payment is rising from $7,437 to $7,786.92. This adjustment aims to better support young families dealing with the escalating costs of child-rearing. Remember, to continue receiving these payments, ensure your tax returns are filed on time.
Next Payment Date: August 20, 2024
GST
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is another tax-free benefit designed to help individuals and families with low to moderate incomes. This credit offsets the impact of GST/HST, making everyday essentials more affordable.
Starting with the next quarterly payment, single individuals will see their maximum annual credit increase from $496 to $519, while couples will receive $680, up from $650. This modest boost is intended to ease the financial pressure on households struggling to make ends meet.
Next Payment Date: October 4, 2024
Canada Workers Benefit
The Advanced Canada Workers Benefit (ACWB) is a refundable tax credit designed to support low-income workers. This benefit encourages continued employment by supplementing earnings, offering a financial cushion, and promoting stability.
The CRA is increasing the maximum annual ACWB for single individuals from $1,428 to $1,518. This increase aims to provide additional support to those who need it most, covering essential expenses and helping to secure financial stability.
Next Payment Date: October 11, 2024
Canada Carbon Rebate
The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment, helps Canadians cope with federal pollution pricing. This benefit is available to residents of specific provinces and is not influenced by income levels.
In a new move, the CRA is introducing a rural supplement starting in October, adding 10% to the rebate for eligible rural residents. This supplement is designed to offset the higher costs of living in rural areas, where federal carbon pricing can hit harder due to longer commutes and other factors.
Next Payment Date: October 15, 2024
Other Support
The CRA isn’t stopping with these core benefits. Several other programs are also available to provide further support:
- Disability Tax Credit (DTC): The CRA has digitized the application process, making it easier for eligible individuals and their families to reduce their tax burden.
- Canada Dental Benefit: This interim benefit offers up to $650 per child for dental care expenses incurred between July 1, 2023, and June 30, 2024. The application deadline is June 30, 2024.
- First-Time Home Savings Account (FHSA) and Home Buyers’ Plan (HBP): These programs help first-time homebuyers save or withdraw funds tax-free for purchasing a home.
- GST/HST New Housing Rebate: This rebate reduces the cost of buying or building a new home by refunding a portion of the GST/HST paid.
Staying Updated
These updates reflect the CRA’s commitment to ensuring that benefit programs keep pace with economic conditions and the needs of Canadians. To maximize your benefits, keep your tax information up to date and stay informed about any changes.
Upcoming Payment Dates
| Benefit | Next Payment Date | Frequency |
|---|---|---|
| Canada Child Benefit (CCB) | August 20, 2024 | Monthly |
| GST/HST Credit | October 4, 2024 | Quarterly |
| Advanced Canada Workers Benefit | October 11, 2024 | Quarterly |
| Canada Carbon Rebate (CCR) | October 15, 2024 | Quarterly |
The CRA’s adjustments to these benefits come at a crucial time, providing much-needed financial support to Canadians as they navigate the challenges of today’s economy. By knowing and utilizing these benefits, you can ensure that you receive the maximum financial support available.
FAQs
What is the new CCB amount for children under 6?
The CCB for children under 6 increases to $7,786.92 annually.
When is the next GST/HST credit payment?
The next GST/HST credit payment is on October 4, 2024.
How much will the ACWB increase for single individuals?
The ACWB will increase to $1,518 for single individuals.
What is the new rural supplement in the CCR?
The CCR will include a 10% rural supplement starting in October 2024.
When can I apply for the Canada Dental Benefit?
You can apply for the Canada Dental Benefit until June 30, 2024.
