2023 Canadian Government Financial Benefits
Prepare yourself for a monetary windfall! This summer, the Canadian national government is stepping in with a range of financial aids to combat the soaring cost of living. These additional funds are of vital importance for those across the nation who fit the eligibility requirements. Nexus has curated a list of five major financial benefits that are scheduled for distribution this coming July. Don’t procrastinate, check your eligibility on the internet – a qualifying household of four could potentially obtain up to 4000 Canadian dollars!
1. Grocery Rebate (Canada)
This year, Canada has introduced a single-payment subsidy to assist families in offsetting the increasing grocery expenses caused by inflation. Approved and set to be disbursed on July 5th, it offers up to $467 per household. Ottawa plans to allocate $2.5 billion towards alleviating the impact of inflation for low- and middle-income Canadians and their families. This grocery allowance could provide couples with two children an additional sum of up to $467. Single Canadians without children could receive an extra $234 at most, and the average additional amount for seniors could be $225. The Canada Revenue Agency (CRA) noted that this subsidy wouldn’t be separately transferred to your bank account, but instead will be issued alongside the regular GST/HST rebate in July.
Takeaways:
- Maximum for single individuals: $234; Maximum for a family of four: $467; Maximum for seniors: $225
- Distribution time: starts from July 5th
- No need to register, will be credited together with the GST rebate
2. GST/HST Rebate
The GST/HST rebate is a tax-exempt payout distributed on a quarterly basis. It’s specifically designed to alleviate the tax burden for Canadian residents who fall into low to middle-income brackets. This consistent tax refund scheme in Canada in 2023 allows single individuals to receive up to $467 CAD, married individuals to receive up to $612 CAD, and each child under 19 to receive up to $161 CAD. These payouts are issued four times a year, in the months of July, October, January, and April.
Takeaways:
- Maximum for single individuals: $467; Maximum for married or cohabiting individuals: $612; Each child under 19: $161
- Distribution time: July 5th, 2023 (distributed once per quarter, total of four times)
- No application is required, automatically issued to those who qualify
3. Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a tax-free payment from the government that aids in covering the costs of raising children. It’s administered monthly by the Canada Revenue Agency (CRA). Your child must be under the age of 18 to be eligible for the child benefit tax credit. You can register automatically when your child is born, or when the child moves in with you. In addition to this, you must meet all the following criteria to receive this payment:
- You are primarily responsible for the care and upbringing of the child
- You are a tax-paying resident of Canada
- Either you or your spouse, or cohabiting partner must meet the condition of having lived in Canada for 18 months as a temporary resident with a valid residency permit.
Takeaways:
- Maximum for children under 6 years: $6997 per year ($583 per month); Maximum for children under 17 years: $5903 per year ($491.91 per month)
- Distribution time: June 20th/ July 20th/ August 18th/ September 20th
- Register online based on residential conditions, automatically issued after qualification
4. Canada Workers Benefit (CWB)
The Canada Workers Benefit (CWB) is a tax relief program aimed at helping individuals and families who are employed but have low incomes. Qualified individuals and families could receive benefits up to $1,428 and $2,461 Canadian dollars, respectively. The specific amount is determined by factors such as employment status and income. This needs to be claimed when filing taxes (The tax agency has launched an advance payment service, where qualified individuals can automatically extend the benefits). The program is currently awaiting final approval, with plans to start automatically distributing payments from July 2023 to those who were eligible in the previous year.
CWB application requirements:
- Having income from employment
- Being a resident of Canada throughout the year
- Turning 19 years old before December 31 of the year
For individuals who are single, the Canada Workers Benefit (CWB) subsidy will start to reduce gradually if their adjusted net income goes beyond $23,495, and they will lose their eligibility once it exceeds $33,015. Similarly, for families, the subsidy will begin to diminish when the net income goes above $26,805, and they will no longer qualify if their income crosses the $43,212 threshold.
Takeaways:
- Maximum for single individuals: $1428; Maximum for families: $2461 (Different standards for Quebec, Nunavut, and Alberta, additional subsidies for the disabled)
- Distribution time: Issued during tax refund time (can be distributed all at once in July or in four installments in July, October, January, and April)
- Automatically issued to those who qualify based on the previous year’s income
5. Climate Action Incentive Payment (CAIP)
The Climate Action Incentive Payment (CAIP) is a tax-free amount designed to assist individuals and families in offsetting the costs of federal pollution pricing. Notably, only residents of Ontario, Manitoba, Saskatchewan, Alberta, Newfoundland, Nova Scotia, and Prince Edward Island are eligible to receive this payment! No application is required for this incentive. The Canada Revenue Agency (CRA) determines eligibility based on income tax and benefits claims, and payments are made quarterly. For instance, the possible amounts to be received in Alberta are as follows:
- Single individuals: $772
- Married or cohabiting partners: $386
- Children under 19: $193 each
- The first child in a single-parent family: $386
Takeaways:
- Varies by province, a single individual can receive up to $772 per year (in Alberta)
- Distribution time: July 15th, 2023 (distributed once per quarter, a total of four times)
- No application is required, automatically issued to those who qualify
To wrap up, the Canadian Federal Government is making moves to ease the burden of the rising cost of living on its citizens. This summer, they are introducing benefits that range from various tax refunds to worker advantages and a climate action incentive. It’s worth taking the time to check if you’re eligible online, as the benefits can add up to $4,000 for a family of four. This is a clear effort by the government to assist low to middle-income families and individuals in coping with the impact of inflation. These benefits could provide significant financial relief, so it’s crucial to stay updated on these opportunities to boost your income.
