With the cost of living on the rise, many Canadians are seeking financial relief. Beginning next month, the Canada Revenue Agency (CRA) will increase several key benefits to offer enhanced support to individuals and families nationwide. These adjustments aim to help Canadians better manage their expenses amid economic pressures.
This blog provides a detailed overview of the upcoming changes to Canadian benefit payments, covering four major benefits, their new amounts, and updated disbursement schedules. By staying informed about these changes, Canadians can ensure they receive the full support available and effectively plan their finances.
Increased Benefit Payments
The CRA reviews and adjusts benefit amounts each year to ensure they align with current financial conditions. This recalibration is based on the latest tax return data, ensuring that support reflects the recipient’s present circumstances. Here’s a detailed look at the benefits receiving increases and the disbursement schedule.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a crucial financial support designed to assist families with the costs associated with raising children. This tax-free monthly payment is recalculated every July based on the adjusted family net income (AFNI) from the previous year.
Also Read : CWB Payment Dates
Eligibility
- Families with children under 18 can apply for the CCB.
- Newcomers to Canada who missed tax filing deadlines must apply using My Account or by mailing Form RC66.
Payment Increase
- For children under 6: The maximum annual benefit increases to $7,786.92, up from $7,437. This increase aims to offer more financial support for raising young children.
Next Payment Date
- August 20, 2024. The CCB is paid monthly, generally around the 20th of each month.
GST/HST Credit
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit is a quarterly payment designed to offset the GST or HST burden for individuals and families with low to moderate incomes.
Eligibility
- Eligibility is automatically determined based on the income reported in your tax return.
Payment Increase
- For single individuals: The maximum credit rises to $519, up from $496.
- For couples: The maximum credit increases to $680, up from $650.
Next Payment Date
- October 4, 2024. This credit is paid quarterly, with the first payment of the fiscal year in July.
Advanced Canada Workers Benefit (ACWB)
The Advanced Canada Workers Benefit (ACWB) is a refundable tax benefit that supports low-income workers, helping them with essential expenses and encouraging continued employment.
Eligibility
- The benefit is available to workers aged 19 or older.
- Payment amounts depend on income and residency status.
Payment Increase
- For single individuals: The annual benefit will increase to $1,518, up from $1,428.
Next Payment Date
- October 11, 2024. ACWB payments are distributed quarterly.
Canada Carbon Rebate (CCR)
The Canada Carbon Rebate (CCR), previously known as the Climate Action Incentive Payment, helps offset federal carbon pricing costs. This rebate ensures that environmental policies do not disproportionately impact Canadians.
Eligibility
- Available to residents of specific provinces aged 19 or older.
- There are no income restrictions.
Payment Increase
- New rural supplement: Starting in October, rural residents will receive an additional 10% to help with country living costs.
Next Payment Date
- October 15, 2024. CCR payments are made quarterly.
Additional Support Programs and Updates
Beyond the primary benefits, several other programs are receiving updates to better serve Canadians.
Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) application process is now fully digital. This change simplifies the application for both individuals and medical practitioners.
Key Points
- The DTC helps those with disabilities reduce their income tax burden.
Canada Dental Benefit
The Canada Dental Benefit offers up to $650 per child for dental care between July 1, 2023, and June 30, 2024.
Application Deadline
- The deadline for the second period is June 30, 2024.
First-Time Homebuyers Savings Account (FHSA) and Home Buyers’ Plan (HBP)
FHSA
- First-time homeowners may save up to $40,000 tax free.
HBP
- Enables withdrawals of up to $60,000 from RRSPs for home purchases with a 15-year repayment period.
GST/HST New Housing Rebate
This rebate helps reduce the cost of buying or building a new home by refunding a portion of the GST/HST paid.
Payment Schedule
Here’s a summary of the upcoming payment dates for each benefit:
| 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 |
Conclusion
The CRA’s recent updates to Canadian benefit payments underscore a dedicated effort to support individuals and families facing the rising cost of living. By enhancing key benefits such as the Canada Child Benefit and the Advanced Canada Workers Benefit, these adjustments are designed to offer substantial financial relief and align with current economic conditions.
Canadians should stay informed about these changes to ensure they receive the full support available. Keeping tax information up-to-date is crucial for maximizing benefits and avoiding potential disruptions in payments. These enhancements reflect the CRA’s commitment to addressing financial challenges and helping residents manage their expenses more effectively.
FAQs
What is the Canada Child Benefit (CCB) and how is it calculated?
The CCB is a tax-free monthly payment that helps families with child-rearing costs. It is recalculated annually in July based on the adjusted family net income (AFNI) from the previous year.
How often is the GST/HST Credit paid, and what is the new amount?
The GST/HST Credit is paid quarterly. For single individuals, the maximum credit will rise to $519, and for couples, it will increase to $680.
What changes are being made to the Canada Carbon Rebate (CCR)?
The CCR will include a new rural supplement starting in October, adding 10% to the rebate for rural residents to help offset the higher costs associated with country living.