Summary of the proposed Canada Disability Benefit Regulations

Introduction

The Canada Disability Benefit Act received Royal Assent (became law) on June 22, 2023. This Act serves as a framework for the new Canada Disability Benefit.

This benefit is being created to reduce poverty and support the financial security of working-age people with disabilities. The Canada Disability Benefit Regulations will make it possible for the benefit to be paid. Payments are expected to begin in July 2025.

The following is a summary of the proposed regulations. This summary is not a legal document and is not intended for use in interpreting the regulations.

Definitions

An applicant is a person who applies for the benefit. This includes a person who has an application made on their behalf.

A beneficiary is a person who has been approved to receive the benefit.

The payment period for the benefit is from July 1 to June 30 of the following year.

Proposed eligibility requirements

To receive the benefit, a person must:

• be a resident of Canada (for the purposes of the Income Tax Act)
• have a valid Disability Tax Credit certificate
• be between the ages of 18 and 64
• have filed an income tax return with the Canada Revenue Agency for the previous tax year. For example, to receive benefits for the July 2025 to June 2026 payment period, the person must have filed a return for the 2024 tax year

Also, the person must be one of the following:

• a Canadian citizen
• a permanent resident
• a protected person
• a temporary resident who has lived in Canada for the past 18 months
• someone who is registered or entitled to be registered under the Indian Act

Applying for the Canada Disability Benefit

The proposed regulations allow Service Canada to design the application process. Once the regulations are finalized, there will be several ways to apply. These methods will be tested first to ensure they are accessible for people with disabilities.

• Online: An application that could be completed and submitted online
• Hard copy: A paper application that could be printed out and completed by hand. The completed application could then be mailed to Service Canada or dropped off at a Service Canada Centre
• In person: An applicant could visit their nearest Service Canada Centre. A staff member would help them fill out and submit the application
• By phone: An applicant could call Service Canada and a staff member would help them complete the application. The application could then be mailed or dropped off at a Service Canada Centre

A person could be authorized to complete an application for someone else using any of the above methods. However, they would need to provide documents to Service Canada to show they have the legal authority to act on behalf of the applicant. They would also need to confirm their identity.

Proposed benefit amount

The maximum amount of the benefit for the July 2025 to June 2026 payment period would be $2,400 ($200 per month). The actual amount a person would receive would depend on their income and the income of their spouse or common-law partner, if any.

Adjusting for inflation

The maximum benefit amount and the income thresholds and working income exemption amounts would be adjusted each payment period to account for inflation, as determined by changes in the Consumer Price Index.

Changes in marital status

If a beneficiary's marital status changes during a payment period, the amount they receive would be recalculated. Changes include:

• getting married
• entering a common-law relationship
• getting divorced or separated
• being widowed (their spouse or partner died)

Start of benefit payments

The benefit would be payable to a person starting the month after the month that their application was approved.

Eligible individuals would be able to get up to 24 months of retroactive payments when they apply. These are payments for past months where an individual was eligible but did not apply for the benefit. There will be no payments for months prior to July 2025.

Death of a beneficiary

If a beneficiary dies, their heirs or estate would be eligible to receive a benefit payment for the month in which the beneficiary died (unless the beneficiary already received the payment for that month).

Representative

This is someone who acts on behalf of an applicant or beneficiary who is unable to manage their own affairs. A representative can:

• complete the benefit application
• receive the benefit for the beneficiary
• request that a decision be reconsidered
• appeal a decision

A representative is a legal representative such as a guardian or trustee. If a beneficiary who is unable to manage their own affairs does not have a legal representative, Service Canada could agree to pay the benefit to someone else for the beneficiary.

Compliance and enforcement

The proposed Canada Disability Benefit regulations include ways to help ensure the benefit goes only to those who are eligible. For example, the government could ask applicants and beneficiaries (or their representatives) to provide additional documents or other information.

Overpayments

The proposed regulations allow the government to recover overpayments. This is when someone is given more of the benefit than they were eligible to receive.

Coming into force

After they are finalized, the regulations will come into force once they are signed by the Governor General and are registered (added to the government's list of regulations).