Canada Disability Benefit Receives Major Funding

Author:  Brenda McCrae   |   Articles, General

The federal government has announced that the new Canada Disability Benefit will receive $6.1 billion in funding over the next six years, starting in the fiscal year 2024-25. Additionally, $1.4 billion will be provided annually on an ongoing basis.

The Canada Disability Benefit Act, which was approved last year, will come into effect this June. Payments to eligible Canadians will begin in July 2025 after the necessary regulatory processes are completed.

This benefit aims to fill a crucial gap in the federal social safety net, positioned between the Canada Child Benefit and Old Age Security. It is designed to supplement, not replace, existing provincial and territorial income support for people with disabilities.

Approximately 600,000 people with disabilities aged 18 to 64 will benefit from this program, receiving up to $2,400 per year. To claim the benefit, eligible individuals will need to file through their annual tax returns, with the Canada Revenue Agency overseeing the distribution.

Eligibility will be based on the existing Disability Tax Credit certificate. To assist with the application process, the government has allocated an additional $243 million over six years and $41 million annually to cover the cost of medical forms required for the certificate.

The federal government is making this investment to address the inadequacies of disability assistance provided by many provinces. They have also urged provincial and territorial governments to ensure that the Canada Disability Benefit payments are not considered income, preventing any reduction in other support benefits.

Brenda McCrae

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About the Author

Brenda McCrae is a Wealth Advisor with Assante Capital Management Ltd. and an Insurance Advisor with Assante Estate & Insurance Services. Please contact her at (519) 752-3155 to discuss your particular circumstances prior to acting on the information above.

Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

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