Canada’s Increased Benefit Payments: What’s New and How to Access Them
The Canada Revenue Agency (CRA) is introducing higher payments for several key benefits starting next month. This change aims to help individuals and families with the rising cost of living. Each year, the CRA reviews and updates these benefits to match people’s current situations based on their most recent tax returns. This ensures the support given is accurate and based on up-to-date income data. To avoid any issues in getting these benefits, Canadians should file their tax returns on time, even if they have no income to report.
Key Benefits with Increased Payments
The CRA is enhancing several benefits to support Canadians better. Here’s a detailed look at these benefits, including eligibility criteria and payment schedules.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a tax-free monthly payment designed to assist families with the costs of raising children. The benefit amount is adjusted every July based on the family’s net income from the previous year, ensuring it reflects their current financial situation.
- Eligibility: The CCB is available to all Canadian families with children. The amount is recalibrated yearly in July based on the adjusted family net income (AFNI).
- Payment Increase: For children under six, the maximum annual benefit will increase to $7,786.92 from $7,437. This boost helps cover the costs of raising young children.
- Next Payment Date: August 20, 2024. The CCB is paid monthly, typically around the 20th.
Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit
The GST/HST credit is a tax-free quarterly payment aimed at helping individuals and families with low to moderate incomes offset the cost of GST or HST on goods and services.
- Eligibility: The CRA automatically determines eligibility based on the income reported in the tax returns. This credit is aimed at individuals and families with low to moderate incomes.
- Payment Increase: The maximum annual credit will increase to $519 for single individuals (up from $496) and $680 for couples (up from $650).
- Next Payment Date: October 4, 2024. The credit is paid quarterly, with the first payment of the fiscal year in July.
Advanced Canada Workers Benefit (ACWB)
The ACWB is a refundable tax benefit designed to support low-income individuals and families. It encourages work and provides additional financial assistance to those who need it most, helping with essential expenses and promoting financial stability.
- Eligibility: This benefit targets low-income workers aged 19 or older. Eligibility and payment amounts depend on the recipient’s income and residency status.
- Payment Increase: The annual benefit for single individuals will rise to $1,518, a modest increase from the previous maximum of $1,428. This change aims to offer greater support for essential expenses.
- Next Payment Date: October 11, 2024. The ACWB payments are distributed quarterly.
Canada Carbon Rebate (CCR)
Formerly known as the Climate Action Incentive Payment (CAIP), the CCR helps offset the costs associated with federal pollution pricing. This benefit ensures that environmental policies do not disproportionately affect Canadians while promoting environmental sustainability.
- Eligibility: Available to residents of specific provinces who are 19 years of age or older, the CCR aims to offset federal carbon pricing costs.
- Payment Increase: Starting in October, the CCR includes a new rural supplement, providing an additional 10% to eligible rural residents to help cover the unique costs of living in these areas.
- Next Payment Date: October 15, 2024. The CCR payments are made quarterly.
Additional Support Programs
In addition to the key benefits listed above, the CRA offers several other programs to support Canadians.
Disability Tax Credit (DTC)
The Disability Tax Credit helps individuals with disabilities and their families reduce the amount of income tax they may need to pay. The application process for the DTC is now available online, making it easier for both applicants and medical practitioners to complete their respective sections.
Canada Dental Benefit
The interim Canada Dental Benefit provides financial support for families with young children needing dental care. This benefit offers up to $650 per child for dental services received between July 1, 2023, and June 30, 2024. The deadline to apply for this period is June 30, 2024.
First-Time Home Buyer Incentives (FHSA and HBP)
The First Home Savings Account (FHSA) allows first-time homebuyers to save up to $40,000 tax-free, with contributions deductible on income tax returns and withdrawals for purchasing a home also tax-free. The Home Buyers’ Plan (HBP) enables individuals to withdraw up to $60,000 from their RRSPs to buy or build a house, with a 15-year repayment period.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate helps reduce the cost of buying or building a new home by refunding a portion of the GST/HST paid. This rebate aims to make homeownership more affordable for Canadians.
Important Dates for Upcoming Payments
| Benefit | Next Payment Date | Frequency |
|---|---|---|
| Canada Child Benefit (CCB) | August 20, 2024 | Monthly |
| GST/HST Credit | October 4, 2024 | Quarterly |
| Advanced Canada Workers Benefit (ACWB) | October 11, 2024 | Quarterly |
| Canada Carbon Rebate (CCR) | October 15, 2024 | Quarterly |
Staying informed and ensuring your information is up-to-date with the CRA is crucial to maximizing the financial support available. By understanding these benefits and their schedules, you can better manage your finances and take advantage of the support offered.
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