The Canada Revenue Agency (CRA) is rolling out increased payments for several key benefits starting next month. These updates aim to provide financial relief for Canadian individuals and families, particularly as the cost of living continues to rise. By adjusting benefit amounts annually, the CRA ensures that payments reflect each recipient’s current financial situation based on their most recent tax filings.
So, if you’re a Canadian resident, expect to see changes in the benefits you receive. But what exactly are these changes, and how will they affect you?
Child Benefit
The Canada Child Benefit (CCB) is a tax-free monthly payment to assist families with child-rearing expenses. Every July, this benefit is recalculated based on the adjusted family net income (AFNI) from the previous year, ensuring the amount matches current financial realities.
Families new to Canada who missed the tax filing deadlines can apply for the CCB via My Account or by mailing Form RC66.
Eligibility: CCB eligibility is based on the AFNI and is available to all Canadian families with children under 18.
Payment Increase: Starting next month, families with children under six can receive up to $7,786.92 annually, up from $7,437.
Next Payment Date: August 20, 2024, and payments will continue on the 20th of every month.
GST/HST Credit
The GST/HST Credit offers quarterly tax-free payments to reduce the financial burden of the goods and services tax (GST) or harmonized sales tax (HST) for lower-income Canadians.
Eligibility: The CRA automatically determines eligibility based on your income tax return. No separate application is necessary, making it an effortless way for individuals and families with low to moderate incomes to get support.
Payment Increase: For single individuals, the maximum credit will rise from $496 to $519, while couples will see an increase from $650 to $680.
Next Payment Date: October 4, 2024, and every quarter afterward.
Workers Benefit
The Advanced Canada Workers Benefit (ACWB) helps low-income workers by supplementing their earnings and providing extra financial support. It encourages individuals to stay employed while easing the financial strain.
Eligibility: The benefit is open to workers aged 19 or older, and payment amounts depend on income and residency.
Payment Increase: The annual amount for single individuals will increase from $1,428 to $1,518.
Next Payment Date: October 11, 2024, with quarterly payments following this schedule.
Carbon Rebate
The Canada Carbon Rebate (CCR), previously known as the Climate Action Incentive Payment, is designed to offset the federal carbon pricing costs. This rebate supports both environmental sustainability and financial fairness, ensuring carbon pricing doesn’t overly affect lower-income Canadians.
Eligibility: Residents of certain provinces aged 19 or older are eligible, and there are no income restrictions.
Payment Increase: The October payments will include a new rural supplement, adding 10% to the rebate for rural residents, acknowledging the extra costs of country living.
Next Payment Date: October 15, 2024, with quarterly disbursements.
Other Programs
Beyond these core benefits, the CRA is rolling out improvements to several other programs:
- Disability Tax Credit (DTC): The application for this credit is now fully digital, simplifying the process for applicants and healthcare professionals.
- Canada Dental Benefit: This interim benefit offers up to $650 per child for dental care, with applications open until June 30, 2024.
- First-Time Homebuyers Savings (FHSA) and Home Buyers’ Plan (HBP): The FHSA allows savings of up to $40,000 tax-free, and the HBP enables RRSP withdrawals of up to $60,000 to buy or build a home.
- GST/HST New Housing Rebate: This rebate helps reduce the cost of purchasing or building a new home by refunding a portion of the GST/HST paid.
Payment Schedule
Here’s a quick glance at the 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 | October 15, 2024 | Quarterly |
With these changes, the CRA aims to provide Canadians with the financial support they need in today’s challenging economic climate. Staying informed about these benefits and ensuring timely tax filings can help maximize the assistance available.
FAQs
Who is eligible for the Canada Child Benefit (CCB)?
Canadian families with children under 18, based on their income.
How often is the GST/HST Credit paid?
The GST/HST Credit is paid quarterly.
When will the next ACWB payment be made?
October 11, 2024.
What is the new benefit for rural residents?
A 10% supplement in the Canada Carbon Rebate (CCR).
Can I apply for the Disability Tax Credit online?
Yes, the DTC application process is fully digital.
