New Canada Disability Benefit is Finally Law

Evelyn Jacks

There are 6.2 million persons with disabilities in Canada, 23% of whom live in poverty. The Canada Disability Benefit (CDB) has been created and now passed into law (June 22, 2023) to help. However, exactly when the payment will start and how much will be paid is still a mystery.

To be modelled after the GIS, the CDB was introduced in the September 2020 throne speech.  In the 2023 federal budget, $21.5 million was committed to support the creation of infrastructure to administer the plan.  But that infrastructure must be created and that means people will need to wait for the money.

Budget 2024 will fund the program and payments could begin in December of 2024.  The benefit will be paid to adults 18-64 years of age.  Also, it will be paid on top of other federal disability programs as well as other provincial programs such as provincial and territorial income assistance, CPP-D, Veteran’s Disability Benefits, Worker’s Compensation, private insurance and other disability support programs. 

Here's the problem:  this is more than a year away, and disabled people who are struggling in poverty must pay for groceries, transportation, medicines and other necessities with inflation-eroded dollars now.

What to do in the meantime?  More financial freedom begins with filing tax returns every year and on time to recover tax relief from a variety of provisions including social assistance, worker’s compensation, the refundable Canada Worker’s Benefit and certain provincial supports.  Working disabled people can also tap into the Disability Supports Deduction, and non-refundable tax credits such as the Disability Tax Credit, medical expense credits as well as the Refundable Medical Expense Supplement.  It is also possible to tap into the CPP Disability Benefit.

For more information, on how to help disabled people in your community access their tax benefits, take the DMA-Tax Services Specialist Designation Program or consult a DMA in your locality.