Finance Canada – Additional Support for Individuals

In order to assist individuals and families with rising inflation, Finance Canada has announced three additional support programs to help alleviate the increased cost of living.

Canada Housing Benefit Program

The Canada Housing Benefit Program announcement provides individuals/families with a one-time top-up payment to the existing program of $500, tax-free. In order to qualify for this payment, individuals must show an adjusted net income of less than $20,000, and families must have a combined adjusted net income of less than $35,000.

In addition to the income requirements, individuals/families will need to confirm the following:

1. At least 30% of their adjusted net income is spent on rent/accommodations;

2. They are paying rent for their principal residence in Canada and must provide the address, amount of rent paid, and the landlord's contact information; and

3. Consent to the Canada Revenue Agency to verify the information provided.

Canada Dental Benefit

Finance Canada's second announcement was the Canada Dental Benefit, which provides eligible parents with tax-free payments to cover dental expenses for children under 12 years old. Families with adjusted net income under $90,000 are eligible to apply. However, the benefit payment is adjusted based on the adjusted net income. The payment benefits are as follows:

1. Adjusted net income below $70,000 - $650 per eligible child

2. Adjusted net income between $70,000 and $79,999 - $390 per eligible child

3. Adjusted net income between $80,000 and $89,999 - $260 per eligible child

In addition to the income requirements, individuals/families will need to confirm the following:

1. The child does not have access to private dental coverage;

2. The child would have out-of-pocket dental care expenses to which the benefit will be applied against; and

3. Support may be requested by the Canada Revenue Agency if required.

GST/HST Credit

The final announcement made by Finance Canada was a revision to the existing GST/HST credit received throughout the year. The announcement proposed doubling the existing credit for six months and would be paid through a one-time, lump-sum payment by the end of the year. There is no application process for this support program, and the Canada Revenue Agency will calculate it upon the filing of your personal tax return.

The contents of this article are intended to provide general, broad guidance only. This article should not be relied upon to cover specific situations, and you should not act upon the information contained herein without obtaining relevant professional advice. Please feel free to contact our office to discuss the information presented herein in the context of your specific circumstances. Lekadir LLP, its principals, employees, and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this article or for any decision based on it.