Last updated: June 17 2020

Still Delayed: Help for DTC Recipients

Beth Graddon

On June 5, the Prime Minister announced two new response benefits to help Canadians through the pandemic. But the promised Disability Tax Credit (DTC) top-up payments and help for the provinces in a “Safe-Restart” Agreement have been delayed as other parties opposed the passing of the bill. Here’s what was proposed:

DTC Top-Up

The government promised a one-time, non-taxable payment of $600 for those receiving the Disability Tax Credit.  As has been the case with other top-up payments, the goal is to help people offset the additional costs experienced as a result of COVID-19. Here’s how the payments would break down:

The one-time, $600 tax-free payment is for individuals who are certificate holders of the Disability Tax Credit. Those who are eligible will receive the payment automatically:

  • $600 for Canadians with a valid Disability Tax Credit certificate.  
  • $300 for Canadians with a valid Disability Tax Credit certificate and who are eligible for the Old Age Security (OAS) pension.
  • An additional $100 for Canadians with a valid Disability Tax Credit certificate and who are eligible for the OAS pension and the Guaranteed Income Supplement (GIS).

Safe-Restart Agreement

As the country gradually starts to open up again, new federal support has been promised to the provinces. This time, it’s an additional $14 billion in federal transfers being promised to the provinces and territories to help implement a “safe-restart” agreement.

What this means specifically and how the funds will be divided among the provinces is still yet to be determined. But so far, Trudeau has announced that it should include 10-days of paid sick leave for all workers to help cope with additional risk faced if the virus is contracted. Plus, it can be attributed towards the safe re-opening of childcare centres as parents return to work. Additionally, the funds should be used to ensure front-line health workers and other businesses have the necessary protective gear to keep employees safe and transit systems operating.

Stay tuned to Knowledge Bureau Report to remain informed, so you can keep your clients up-to-date as we all learn more.

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