The Canadian government has proposed the Canada Disability Benefit funding of $6.1 billion for six years in the Budget 2024. The benefit supports disabled people with income supplements and helps them cover their expenses.
Under the Canada Disability Benefits Act, the government will finally start this benefit this year after years of advocacy for disability communities. Canadians wondering about this benefit and its details can find everything here.
Canada Disability Benefit
In Budget 2024, the federal government has proposed Canada Disability Benefit funding for six years, which will begin in 2024 to 2025. According to the announcement, the government proposed $6.1 billion for six years, out of which $1.4 billion is decided for each year. Since the announcement of the benefit, Canadians who are struggling with their disabilities have been delighted.
The Canadian Mental Health Association released an update on the benefit last year, where they have mentioned everything about the benefit. According to the CMHA update, the government will begin this benefit from July 2025 to all Canadians who hold Disability Tax Credit Certificates and are working.
The government has established the Canada Disability Benefit to help eligible disabled people with their bills, improve their lives, and offer them financial security. The process of the benefit will begin once the government completes the regulatory process and consults with the citizens with disabilities.
Canada Disability Benefit Eligibility Criteria
As per the CMHA update on the Canada Disability Benefit, the Canadian who meets the following eligibility conditions will be eligible to apply for the benefit:
- Your age to apply for the CDB should be between 18 and 64 years;
- You must be a Canadian citizen, a protected person under the Immigration and Refugee Protection Act, a permanent resident, a temporary resident who has resided in Canada for at least the past 18 months, or registered under the Indian Act.
- You fulfill the Canadian income tax purposes as a Canadian resident.
- You have filed the income tax return for the tax year starting with 2024, or if you live with a common-law partner or spouse, then your partner must have also filed the tax return for the previous year.
- You must have a valid Disability Tax Credit certificate to access this benefit, this way the government ensures that people with disability, mental illnesses, or any disorder can receive this benefit.
Canada Disability Benefit Payout Amount
As per the government, the Canada Disability Benefit will offer the beneficiaries a payout of $24,00 in a year, where they will receive a payout amount of $200 a month. The beneficiaries should know the payout amount will be based on the federal government formula depending on the individual income or combined income of the couple.
The eligible CDB recipients would receive the maximum benefit when their income is less than $23,000 to $33,000, however, if the person lives with their spouse or common-law partner, the combined income should be less than $32,500 to $46,500.
The Canadians can get the CDB benefit while working, hence if the income exceeds a certain amount, the recipients can expect reduction or eventually elimination in their payout. Hence, if you are working you should check the income limit above which you cannot access the CDB payout.
What can affect your Canada Disability Benefit Payout?
As we mentioned above, the Canada Disability Benefit amount depends on the income you earn while working. The Canadians can check the following amount of income that can affect your CDB payout:
- The CDB amount can be reduced to zero for individuals if the annual income is above the threshold of $35,000 to $45,000.
- The CDB amount can be reduced to zero for couples where one person is eligible for the benefit if the combined annual income is above the threshold of $45,000 to $58,500.
- The CDB amount can be reduced to zero for couples when both are eligible for the benefit if the annual income is above the threshold of $56,500 to $70,500.
The annual income for the year will be considered based on the previous tax year which they have reported in their tax return.
How to apply for the Canada Disability Benefit?
The Canadian government has not started the application process for the Canada Disability benefit yet. The government will update the application process on the benefit web pages on the Service Canada page soon before the launch of the benefit.
According to the government, the CMHA and Service Canada are making efforts to make the application process seamless and accessible for Canadians under the regulations. The officials plan to open the application process in multiple ways (online, by phone, in person, or by mail) to make it convenient for the people.
As per the current update, the legal representative of the eligible citizens would also be able to apply for the Canada Disability benefit on their behalf. Eligible Canadians have to present the documents related to their disability, residency, etc. According to CMHA, the applicants can expect the benefit payment from the launch of the program to the time they have applied after their application is approved, for instance, if a person applied in 2026, he/she will receive the months for all the months since the benefit was launched.
As we mentioned, the application process for the CDB is yet to be opened, so in the meantime, eligible Canadians should ensure they have the DTC certificate or applied for it to receive it on time. The government has fastened the process of issuing the DTC certificate, so if you do not have the certificate apply now and receive the certificate within eight weeks.