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Canadians won't be taxed on disability benefit under proposed rule change

Darpan News Desk The Canadian Press, 17 Dec, 2024 01:48 PM
  • Canadians won't be taxed on disability benefit under proposed rule change

The Liberals are planning to introduce legislation to exempt the Canada Disability Benefit from being treated as income under the Income Tax Act.

The fall economic statement, released Monday, is also calling on provinces and territories to ensure the program's recipients do not have their benefits reduced as a result of it.

The disability benefit, which is set to take effect in July, would see eligible people receive up to $200 per month.

While advocates critiqued the amount as being too low, others worried about it being considered income which could lead to a reduction in provincial and territorial government benefit.

Amanda MacKenzie, the national director of external affairs for March of Dimes Canada, says the government's plan to exempt it from taxation is welcome news and addresses one of the concerns people had about the benefit.

She also says it's a signal from the government to the community that they're going to work with people with disabilities to realize the "full value" of this benefit.

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