Additional information on the proposed Canada Disability Benefit Act Regulations

What would make someone eligible for the Benefit

Answer: The proposed regulations say that to be eligible to receive the Benefit you must meet the following conditions:

1. age and residency:
   • be between the ages of 18 and 64, and
   • be resident in Canada for the purposes of the Income Tax Act
2. status in Canada (one of the following):
   • a Canadian citizen
   • a permanent resident
   • a protected person
   • a temporary resident who has lived in Canada for the last 18 months, or
   • someone who is registered or entitled to be registered under the Indian Act
3. tax-related requirements
   • have a valid Disability Tax Credit certificate, and
   • have filed an income tax return with the Canada Revenue Agency for the previous tax year (for example, filed a return for the 2024 tax year to be eligible for benefits from July 2025 to June 2026)

How old would someone have to be to receive the Benefit

Answer: the purpose of the Benefit is to support the financial security of working age persons with disabilities. As stated in the proposed regulations, working age is defined as between the ages of 18 to 64.

People who are 18 years old could start receiving the Benefit the month after their 18th birthday. If you are eligible and turning 65, you would be eligible to receive the Benefit for the month of your 65th birthday.

Do I need to file my taxes in order to receive the benefit

Answer: To be eligible for the Benefit, individuals would need to have filed their income tax return with the Canada Revenue Agency for the tax year before.

The only exception is for people younger than 18 years and six months at the end of the tax year. If that is the case, you would not be required to have filed your taxes to be eligible for the Benefit (although you may still want to or need to for other reasons); instead, your income would be assumed to be $0. This is help support a smooth transition for youth with severe and prolonged disabilities from the Child Disability Benefit (which would end the month of their 18th birthday) to the Canada Disability Benefit (which would start the month after their 18th birthday).

People could file their income tax and benefit return and apply for the benefit at any time in the year.

Why is eligibility for the Canada Disability Benefit tied to the Disability Tax Credit

Answer: the Government prioritized the goal of maintaining integrity and equity between individuals living in all parts of Canada. Basing disability eligibility criteria on provincial or territorial benefits could potentially create disparities where an individual would qualify for the Benefit in one jurisdiction but not in another. This would go against the nature of the Benefit as a national benefit and would complicate the smooth transition of services should an individual move, for example.

Basing disability eligibility on the Disability Tax Credit would ensure that the Government maintains a consistent and equal approach across Canada. It would greatly streamline the application process for over 500,000 working-age persons with disabilities who already have a valid Disability Tax Credit certificate (some/many of whom would be eligible for the Benefit). The Disability Tax Credit also covers a broad range of physical and mental functions and assesses their impact on daily living, while also focusing on persons with the greatest disability-related needs. Using the Disability Tax Credit certificate would also simplify the application and payment processes.

The Disability Tax Credit is also part of the eligibility criteria for other federal programs (such as the Registered Disability Savings Plan, the Canada Workers Benefit disability supplement, and the Child Disability Benefit) and some provincial and territorial programs (such as Newfoundland and Labrador's Income Supplement Disability Amount and British Columbia's Home Renovation Tax Credit).

How do I apply for the Disability Tax Credit

Answer: The Disability Tax Credit is a non-refundable tax credit that helps people with severe and prolonged impairments, or their supporting family members, reduce their income tax. To apply for the Disability Tax Credit a medical practitioner needs to certify the effects of the impairment on the person. Medical practitioners who can certify an impairment include a medical doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist and a speech-language pathologist.

You can apply for the Disability Tax Credit at any time. To apply, complete the Disability Tax Credit Certificate form (Form T2201) and submit it to the Canada Revenue Agency. Part A of the form can be completed using My Account (Canada Revenue Agency's secure portal) or by phone. Once completed, the applicant receives a reference number to give to their medical practitioner who will use it to complete Part B of the form.

Once the application has been submitted to the Canada Revenue Agency, its status can be tracked in the applicant's My Account using the Progress Tracker. A paper version of the T2201 continues to be available for people who are unable to, or prefer not to, complete the application online or by phone.

When someone is approved for the Disability Tax Credit, they receive a notice of determination that shows the number of years the individual will be eligible for the Disability Tax Credit. Eligibility can be permanent or temporary. If temporary, the person can reapply once it expires. The Canada Revenue Agency informs people when their eligibility for the Disability Tax Credit will expire in the Notice of Assessment the year before and the year of expiry.

What steps is the Government taking to help people get the Disability Tax Credit certificate

Answer: The Government wants to improve access to programs and services for persons with disabilities. Budget 2024 provided an investment of $22.4 million over five years starting in 2025-26, and $3.8 million per year after that, for community-based navigation services to improve awareness and take-up of federal, provincial and territorial programs available to working-age Canadians with disabilities.

Navigation services in the community will inform people and their families and connect them with resources about federal and provincial/territorial disability programs and services, including the Disability Tax Credit, which are not always easy to access. Funding for this support aims to reduce barriers to accessing available programs and benefits.

Budget 2024 provided funding of $243 million over 6 years, beginning in 2024-25, and $41 million per year after that, to cover the fees charged by medical practitioners to complete the medical forms for a disability tax credit application. The Canada Revenue Agency is developing an approach to cover the cost of the medical forms. More details will be announced as they become available.

What would the application process for the Canada Disability Benefit be like

Answer: Service Canada is taking steps to make the application process inclusive and accessible. The specifics of the application process are not detailed in the proposed Regulations, but it is planned that there will be multiple ways to apply, including online, by phone, by mail and in person.

People would apply for the Benefit through Service Canada. Service Canada is working to develop a process where people could apply for the Benefit at any time in the year and for people not to need to apply again unless they become ineligible and then regain eligibility.

All methods to apply would also be available for legal representatives applying on someone's behalf. The legal representative would also need to provide documents to prove their identity and legal authority to act on behalf of the applicant.

Once an application has been submitted and assessed, Service Canada would notify the applicant to confirm approval or denial of the Benefit application.

Service Canada is also developing an outline of the application process, which will be available in spring 2025. More details will be shared on the Benefit web pages and through public communications before the launch of the Benefit.

What if I wait to apply for the Canada Disability Benefit

Answer: The proposed regulations say that you would be able to get up to 24 months of retroactive Benefit payments when you apply. (Please note that there is not yet an application process or form to apply for the Benefit. These will be made available once the regulations are finalized.)

Retroactive payments would be payments for past months where you were eligible but had not yet applied for the Benefit. There would be no Benefit payments for months before July 2025.

For example, if you became eligible for the Benefit in July 2025 but only applied in July 2027, under the proposed Regulations you could receive retroactive payments for up to 24 months from July 2025 to July 2027, if you were eligible during that time.

Why are eligible people not automatically enrolled for the Canada Disability Benefit, either because they already have a Disability Tax Credit certificate or receive disability benefits from a Province or Territory

Answer: Under the Canada Disability Benefit Act, an application is required. Filing an application will allow individuals to provide any other information needed (such as citizenship and residency status) beyond Disability Tax Credit eligibility and income. As well, the Government is working with provinces and territories to address potential negative interactions between the Benefit and other programs and benefits that individuals may receive. For now, an application will help reduce the likelihood that someone receives the Benefit without knowing and has other benefit supports reduced as a result.

In relation to automatic enrolment for people who are already receiving provincial or territorial disability supports, the Government prioritized the goal of maintaining integrity and equity between individuals across jurisdictions. Basing disability eligibility criteria on provincial or territorial benefits could potentially create gaps where someone would qualify for the Benefit in one jurisdiction but not in another. This would go against the idea of the Benefit being nationwide and would make it harder to smoothly transfer services if someone moves, for example.

Other application options may be considered in the future; in the meantime, the Benefit application process will be designed to be inclusive and accessible.

Will I have more money if I work while receiving the Canada Disability Benefit

Answer: The Benefit is designed to ensure that it pays for people to work. Depending on your situation, under the proposed Regulations, you could earn at least $10,000 a year from employment, self-employment or a business without any effect on the Benefit you receive. Some benefit recipients and/or their spouses/partners would be able to make as much as $46,500 through work while still getting the maximum benefit.

If your working income is too high to qualify for the full Benefit, your Benefit would be reduced by 20 cents for every additional dollar that you make.

Please consult scenarios 1 to 5 (below) for examples of how income would be considered for the Benefit.

Why is the Canada Disability Benefit tied to family income and not individual income

Answer: income-tested benefits, such as the Guaranteed Income Supplement, Canada Child Benefit, and provincial/territorial social assistance, almost always use family income to calculate the amount of support a person needs. Spouses and partners who live together can share expenses (such as shelter and food costs). The Benefit is a poverty reduction measure; this means focusing on individuals and families with lower incomes, rather than families with relatively high incomes.

However, the Government has heard clearly from the disability community that considering spousal/partner income when calculating benefits can leave persons with disabilities in a vulnerable position and interfere with their autonomy.

The Government is proposing to balance these two considerations by allowing couples to keep more of their income before their benefit begins to be reduced:

• if you receive the Benefit and your spouse/partner doesn't qualify for it, you would still be entitled to a Benefit amount until your combined income reaches $58,500
• if you and your spouse/partner both receive the Benefit, you would still be entitled to a Benefit amount until your combined income reaches $70,500

Please read scenarios 4 and 5 (below) for examples of how spouse/partner income would be considered for the benefit.

Why are Benefit amounts similar for those who are working and those who are not

Answer: The Government designed the Benefit as a supplement to existing benefits. This includes exemptions and thresholds to allow the largest possible number of people on provincial/territorial disability assistance to receive the full value of the Benefit. In addition, the Benefit reduction rate is designed to decrease gradually as income increases. This means that the higher your income, the lower the value of your Benefit entitlement will be in general. There will also be an earnings exemption, to ensure that people will have more money when working.

What factors did the Government consider in setting the benefit amount

Answer: In setting the benefit amount, the Government considered a range of factors, including those listed in subsection 11(1.1) of the Canda Disability Benefit Act:

• the Official Poverty Line (as defined in section 2 of the Poverty Reduction Act)
• the additional costs associated with living with a disability
• the challenges faced by those living with a disability in earning an income from work
• the intersectional needs of disadvantaged individuals and groups; and
• Canada's international human rights obligations

The Benefit amount and target demographics are intended to provide support to people below the poverty line.

As advocated by stakeholders, the Regulations propose that the Benefit amounts, thresholds and exemptions be indexed to inflation. These adjustments would support a similar level of access to the benefit over time, in line with changes in the cost of living.

Does the Government plan to eventually increase the Canada Disability Benefit amount

Answer: as announced in Budget 2024, the Government aims to see the combined amount of federal and provincial or territorial income supports for persons with disabilities grow to the level of Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), to fundamentally address the rates of poverty experienced by persons with disabilities. Creating the Benefit will enable the Government to engage with provinces and territories to understand how it will interact with their existing supports, and how to grow the combined supports for persons with disabilities.

How will the Canada Disability Benefit treat income from other social assistance programs that I receive

Answer: the Government is committed to maximizing the impact of the benefit and is working to address unintended consequences on existing federal, provincial/territorial and private disability benefits. More details will be announced as they become available.

How is the Government working with the provinces and territories to minimize the possibility of Benefit clawbacks

Answer: the Government will continue engaging with provinces and territories to address the interaction between the Benefit and provincial and territorial supports for persons with disabilities. The goal of these engagements is to ensure that people receive the full amount of the Benefit for which they are eligible. The Government will also coordinate with provinces and territories in developing an approach to sharing information about the benefit amounts that individuals receive.

When can I expect to see the money in my bank account

Answer: budget 2024 announced that the Government would begin providing Benefit payments to eligible Canadians starting in July 2025, following successful completion of the regulatory process and consultations with persons with disabilities. The intent is to move forward as quickly as possible while also ensuring that the disability community is engaged in the regulatory development process, as required by the Act.

The proposed regulations say that the Benefit would be payable to a person starting the month after the month in which their application is approved (for example, if someone's application is approved in August 2025, the first Benefit payment would be made in September 2025).

What if someone is unable to handle their own personal affairs

Answer: under the proposed Regulations, a representative could act on behalf of someone who cannot handle their own personal affairs. A representative is a legal representative such as a guardian or trustee. The proposed regulations say that a representative of a person who is incapable of managing their own affairs could:

• complete the Canada Disability Benefit application
• receive the Benefit for them
• request that a decision be reconsidered, and
• appeal a decision

If a person who receives the Benefit is unable to manage their own affairs and does not have a legal representative, the Benefit could be paid to someone else to be managed on their behalf.

What can I do I if I disagree with the decision made on my Canada Disability Benefit application

Answer: if you disagree with a decision about your eligibility for the Benefit or the amount you receive, you could ask for the decision to be reconsidered.

In general, you would have 180 days from the day you find out about the decision to ask for a reconsideration. In some situations, you could get more time to ask for a reconsideration.

If you disagree with a reconsideration decision, you could appeal the decision to the Social Security Tribunal (the Tribunal).

The Tribunal hears appeals related to federal social security programs and streamlines and simplifies the appeals process for people who disagree with decisions made under these programs. The Tribunal focuses on plain language and serves to help underrepresented individuals navigate the appeals process.

The Tribunal has two divisions: the General Division and the Appeal Division. All appeals start at the General Division by filing a notice of appeal. How to file a notice of appeal and what it must include will be explained on the Tribunal website. If someone makes an appeal to the Tribunal that is related to income, the Tribunal would refer it to the Tax Court of Canada for decision.

There is no fee to file at the Tribunal, and interpretation services at hearings are provided at no cost. However, if you wish to have professional representation, the expense would be yours. Additional costs may arise, such as photocopying documents and mailing them to the Tribunal or traveling to in-person hearings. However, the process offers flexible options, such as teleconferences, to help ease these costs.

What happens if I receive more money than I am eligible for from the Canada Disability Benefit

Answer: like with other benefits, the Canada Disability Benefit is only intended for those who are eligible. The proposed regulations say that the Government could recover overpayments of the Benefit. An overpayment is when you receive more from the Benefit than you are eligible for. Recovering overpayments is a standard part of the administration of any benefit program.

The Government recognizes that overpayments can cause financial strain on vulnerable people. Flexibilities exist to minimize the burden of returning overpayments. A debt you owe could be paid back in one single payment or, if the department agrees, in instalments in any amount that does not cause you undue hardship.

If you are overpaid because of an error made by the Government, you would not be charged interest on what you must pay back. This is not the case if the overpayment was made because of a violation (such as when a person knowingly made false or misleading representations in relation to an application).

What timelines are expected for the engagement and regulatory development processes

Answer: the Canada Disability Benefit Act requires that regulations be made no later than June 2025. The Government wants to launch the Benefit as quickly as possible without sacrificing the quality of consultations or the Benefit itself.

With the pre-publishing of the draft regulations in Part I of the Canada Gazette on June 29, Canadians and organizations can review and comment on them. The comment period for the Canada Disability Benefit Regulations will be approximately 86 days (from June 29 to September 23, 2024). This is longer than a typical regulatory consultation period, in order to ensure that all interested parties have an opportunity to comment. Once the comment period closes, the Government will analyze the comments received and revise the regulations as appropriate.

How can I access the draft Canada Disability Benefit Regulations and give feedback

Answer: the proposed Canada Disability Benefit Regulations and the Regulatory Impact Analysis Statement are published in Part I of the Canada Gazette. You can comment on the proposed regulations using the Canada Gazette system.

You can give feedback on the proposed regulations using their online commenting feature on the Canada Gazette website. If you prefer, you can also comment:

• by email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca
• by video: use the email above to send us a link to a recorded video of your comments
• by mail:

Canada Gazette, Part I, Canada Disability Benefit Regulations c/o Office for Disability Issues, Employment and Social Development Canada, 105 rue de l'Hôtel-de-Ville, 1st floor Gatineau, QC J8X 4H7

Please note that if you comment on the proposed regulations using any of the alternative ways listed above, you will be contacted to acknowledge the Privacy Notification Statement before your feedback can be entered into the Canada Gazette commenting system. If you comment using the Canada Gazette system, you will be able to acknowledge the statement directly on the website, without any extra steps.

The Government will analyze the comments received and revise the regulations as needed. Then the final regulations will be published in Part II of the Canada Gazette.

Are the draft regulations available in alternate formats

Answer: you may request a copy of the proposed Canada Disability Benefit Regulations and the Regulatory Impact Analysis Statement in a Word document or in alternate formats by contacting Employment and Social Development Canada. You can send your request:

• by email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca
• by video: use the email above to send us a link to a recorded video of your comments
• by mail:

Canada Gazette, Part I, Canada Disability Benefit Regulations c/o Office for Disability Issues Employment and Social Development Canada, 105 rue de l'Hôtel-de-Ville, 1st floor Gatineau, QC J8X 4H7

Scenario 1

Alina is 25 years old, single and lives with her parents. She meets the eligibility criteria for the Canada Disability Benefit. Her only income is $10,000 a year in provincial social assistance. While she lives with her parents, only Alina's income is considered when calculating the benefit.

• Because Alina's income ($10,000) is below $23,000 (the income threshold for a single person), she receives the full benefit with no reduction: $2,400 a year

Scenario 2

Nguyen lives alone and meets the eligibility criteria for the Canada Disability Benefit. He works full-time and earns $35,000 a year. He does not receive disability-related income or income from any other source.

• Because Nguyen has more than $10,000 in working income, he's able to use the full working income exemption of $10,000 for singles. $10,000 is subtracted from his earnings of $35,000, and only $25,000 of his income is considered when calculating the benefit amount. This is called his non-‑exempt income
• Nguyen's non-exempt income of $25,000 is $2,000 over the income threshold for a single person ($23,000). So, the amount Nguyen receives is reduced by $400 a year ($2,000 x 20%)
• So, Nguyen receives $2,000 a year or $167 a month

Scenario 3

Myriam lives alone and meets the eligibility criteria for the Canada Disability Benefit. She receives $30,000 a year as income from a workers' compensation program. She also works, earning $5,000 a year. In total, Myriam's income is $35,000 a year.

• Because Myriam has less than $10,000 in working income, all her earnings of $5,000 from work are exempt and are subtracted from her total income of $35,000
• Myriam's income from workers' compensation brings her $7,000 over the single threshold of $23,000 for the Canada Disability Benefit. So, the amount Myriam receives is reduced by $1,400 a year ($7,000 x 20%)
• She receives $1,000 a year, or $83 a month

Scenario 4

Sam and Rupinder live together with their young daughter. Sam is eligible for the Canada Disability Benefit while Rupinder is not. Sam has a job paying $48,000 a year. Rupinder stays home with their daughter and receives $8,000 from the Canada Child Benefit.

• Because Sam has more than $14,000 in working income, he's able to use the full working income exemption for couples (which is $14,000). So only $34,000 of his income is considered when determining the Canada Disability Benefit amount. ($48,000 - $14,000 = $34,000)
• Note: It would make no difference if Rupinder was working rather than Sam, or if they were both working. The working income exemption can be used even if the spouse/partner earning the income doesn't have a disability
• The Canada Child Benefit doesn't have to be declared on Rupinder's taxes, so it is not taken into account for the Canada Disability Benefit
• Sam's non-exempt income ($34,000) is $1,500 more than the couple income threshold ($32,500). Because of this, the amount Sam receives is reduced by $300 a year ($1,500 x 20%)
• So, he receives $2,100 a year, or $175 a month

Scenario 5

Donna and Lucia are a common-law couple who both work. Each is eligible for the Canada Disability Benefit. They each earn $27,000 from a combination of work and self-employment, for a combined income of $54,000.

• Donna and Lucia's working incomes are added together, and because their combined earnings are more than $14,000 in working income, they can use the full working income exemption of $14,000 for couples
• The remainder of the couple's income ($54,000 - $14,000 = $40,000) is $7,500 over the couple income threshold ($32,500). Because of this, they each have their benefits reduced by $750 a year ($7,500 x 10%)
• So, they each receive $1,650 a year, or $137.50 a month