Canada Gazette, Part I, Volume 158, Number 26: Canada Disability Benefit Regulations

June 29, 2024

Statutory authorities
Canada Disability Benefit Act
Department of Employment and Social Development Act

Sponsoring department
Department of Employment and Social Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: The Government of Canada, under the framework of the Canada Disability Benefit Act, has committed to reduce poverty and support the financial and social security of working-age persons with disabilities, who are twice as likely to live in poverty and financial insecurity as compared to persons without disabilities. Proposed new Canada Disability Benefit Regulations (the Regulations) would introduce a new income-tested benefit — the Canada Disability Benefit (the Benefit) — enabling annual financial support to eligible persons with disabilities. The proposed Regulations establish the parameters for the Benefit, such as eligibility criteria, the Benefit amount and how it will be calculated.

Description: As set out in the proposed Regulations, the Benefit would provide low- and modest-income working-age individuals with severe and prolonged disabilities (as set out in the Income Tax Act) with a yearly maximum of $2,400 in financial support, indexed to inflation. They also establish how payments will be made and the role of representatives of a person that is incapable, as well as administrative processes, such as changes to or reconsiderations of decisions, appeals, fixing administrative errors, authorities to verify compliance, offences, administrative monetary penalties, and the recovery of overpayments and debts. An amendment to the Social Security Tribunal Regulations, 2022, relating to appeals under the Canada Disability Benefit Act is also included in this regulatory proposal. The Benefit is designed as a social benefit and is not intended to be an income replacement benefit.

Rationale: Under the Canada Disability Benefit Act, the Governor in Council must make regulations by June 2025 that would enable the Benefit to be paid. The proposed Regulations set out key details that would enable the Government of Canada to administer the Benefit and begin making payments. Over 10 years, beginning in fiscal 2025–26, the estimated costs of this proposal are $525,605,679 million in present value (PV). These costs are expected to be offset by qualitative gains in well-being that come from poverty reduction and improved financial security. The value of the Canada Disability Benefit itself is not accounted for in the monetized analysis because for cost benefit analysis purposes it is treated as a transfer from the Government of Canada to Canadians.

Issues

Over four million Canadians of working age (18–64 years) identify as having a disability, and of these, approximately 1.6 million have a severe or very severe disability. Working age Canadians with disabilities experience poverty at twice the rate of Canadians without disabilities.footnote 1 Though employment can be an important driver of economic and social inclusion, there are many barriers to entering the workforce and within workplaces for persons with disabilities (e.g. discrimination, inaccessible workplaces, exclusionary practices). As a result, even with a job, many persons with disabilities continue to live in poverty (13% of employed persons with disabilities compared to 9% of their peers without disabilities).footnote 2 The employment rate of persons with severe disabilities aged 16–64 was 50.4% in 2022, while the employment rate for those with a very severe disability was 26.8%. This is compared to an employment rate of 76.6% for those with mild disabilities and 64.5% for those with moderate disabilities.footnote 3 Provincial and territorial income supports are largely insufficient to meet the economic demands that many persons with disabilities face in their day-to-day lives.

The Canada Disability Benefit (the Benefit) is a response to the longstanding economic and social barriers faced by persons with disabilities. The Canada Disability Benefit Act (the CDB Act) establishes the framework for a new income-tested, annual benefit for eligible working-age persons with disabilities. For the Benefit to be distributed to Canadians, the details need to be set out in the proposed Canada Disability Benefit Regulations (the Regulations).

The proposed Regulations set the following conditions to allow the Benefit to be administered: eligibility criteria, Benefit amount and how it will be calculated, how payments will be made, and the role of representatives for persons who are incapable of managing their own affairs. Other administrative processes, such as changes to or reconsiderations of decisions, appeals, and fixing administrative errors are also set out as are authorities to verify compliance, administrative monetary penalties, offences, and the recovery of debts and overpayments made to individuals. The proposed Regulations also provide the authority to design an application process, which is intended to be administered by Service Canada.

Background

The Government of Canada committed to introducing the Benefit as part of its Disability Inclusion Action Plan (the Action Plan), announced in the 2020 Speech from the Throne. The Action Plan is a comprehensive, whole-of-government approach to disability inclusion in four key areas: financial security, employment, accessible and inclusive communities, and a modern approach to disability. The Action Plan embeds disability considerations across government programs while identifying targeted investments in key areas to drive change.

On June 22, 2021, the Government of Canada introduced Bill C-35, An Act to reduce poverty and to support the financial security of persons with disabilities by establishing the Canada disability benefit and making a consequential amendment to the Income Tax Act. Although Parliament was dissolved in 2021 for the federal election, the same bill was reintroduced in June 2022 as Bill C-22, the CDB Act.

The CDB Act received royal assent on June 22, 2023, with a coming into force date of June 22, 2024, and has the goal of reducing poverty and supporting the financial security of working-age persons with disabilities. As framework legislation, which describes the general goals of and limits of the Benefit, the CDB Act leaves the details, such as eligibility and the Benefit amount, to be set out in regulations. Additionally, the CDB Act requires the Government of Canada to present two progress reports: the first must set out how it met the obligation to engage and collaborate with the disability community on the development of regulations, by December 22, 2024; the second must present progress made with respect to the regulatory process, by June 2025.

Budget 2023 committed $21.5 million to continue work on the future delivery of the Benefit, including engagement with the disability community and the provinces and territories during the regulatory process. During engagement activities from 2023 until now, stakeholders have generally expressed support for a Benefit that would have a significant impact on poverty reduction among working-age persons with disabilities and a simple and barrier-free application process, be inclusive of a broad range of disabilities, and not interact negatively with existing disability benefits and supports, such as those received from provinces and territories. Stakeholders have also stressed the need to begin making Benefit payments as soon as possible. To support implementation of the new Benefit, including delivery costs, Budget 2024 announced $6.1 billion over six years, beginning in 2024, and $1.4 billion per year ongoing.

Building on the framework established by the CDB Act and taking into account stakeholder input on the Benefit’s design, the proposed Regulations establish Benefit details such as eligibility criteria, the benefit amount and how it will be calculated, how payments are made, and the application process. Among other eligibility criteria such as age and citizenship, the Disability Tax Credit would be the basis for determining disability eligibility for the Benefit. Using the Disability Tax Credit to determine disability under the proposed Regulations will make use of a well-established disability adjudication system to determine individuals with severe and prolonged disabilities. Although it requires a separate application process, requiring applicants to have a Disability Tax Credit can potentially help them in a number of ways, even if they do not have taxable income. For example, having Disability Tax Credit eligibility can give applicants access to a number of other federal, provincial, or territorial programs and benefits, such as the Registered Disability Savings Plan, the Canada Workers Benefit disability supplement, and the Child Disability Benefit.

The Benefit amount is designed to recognize and support the importance of work and balance the differences between singles and couples. While the Regulations do not set out the details regarding the application process, the goal is to create an inclusive, accessible application process that would be administered by Service Canada.

The proposed Regulations would allow Service Canada to fix administrative errors and change decisions, such as in relation to eligibility or Benefit amount, based on new information. The goal is to allow individuals to request reconsiderations of and appeal government decisions regarding their eligibility, Benefit amount, and any administrative monetary penalties. Additionally, the proposed Regulations include authorities for verifying compliance, and provisions for administrative monetary penalties and offences, which are not intended to penalize individuals who make mistakes.

Objective

The objective of the proposed Regulations is to enable payment of the Benefit as soon as possible especially during a time when many Canadians are facing cost of living challenges. The Benefit is a new income-tested benefit intended to reduce poverty and support the financial security of working-age persons with disabilities.

Description

Outline of the proposed Regulations

Note: It is anticipated that Service Canada will act for the Minister in administering the Benefit. For this reason, and for ease of understanding, Service Canada is referred to in this document where authorities are given to the Minister in the proposed Regulations.

Definitions

The proposed Regulations include definitions for various terms. Key terms include

Eligibility

To be eligible for the Benefit, individuals would have to

Disability Tax Credit

Having Disability Tax Credit eligibility is proof obtained from the Canada Revenue Agency that someone qualifies for the Disability Tax Credit, which is a non-refundable tax credit that helps people with severe and prolonged impairments, or their supporting family members, reduce their income tax.

Individuals may apply for the Disability Tax Credit at any time during the year by completing the Disability Tax Credit Certificate form (Form T2201) and submitting it to the Canada Revenue Agency. Applying for the Disability Tax Credit involves the person who has the impairment and a medical practitioner who can certify the effects of the impairment. Medical practitioners who can certify an impairment include a medical doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist and a speech-language pathologist.

When someone is approved for the Disability Tax Credit, they receive a notice of determination which advises them of their eligibility and shows how many years the individual will be eligible for the Disability Tax Credit. Disability Tax Credit eligibility can be either permanent or temporary. If an individual’s Disability Tax Credit eligibility is temporary, the individual will have to reapply once it expires. The Canada Revenue Agency informs individuals when their eligibility for the Disability Tax Credit is about to expire via their Notice of Assessment the year prior and the year of expiry.

The majority (63%) of working-age persons who are eligible for the Disability Tax Credit have permanent eligibility, meaning it never expires and there is no need to reapply.footnote 4 Those with temporary eligibility would need to reapply for the Disability Tax Credit to remain eligible for the Benefit. According to Employment and Social Development Canada internal analysis, it is estimated that 110 000 new Disability Tax Credit applications will be made in 2025–26 by working-age individuals in all income ranges (not only those with low incomes).

Tax filing with the Canada Revenue Agency

To be eligible for the Benefit during a payment period (July to June), individuals would also need to have filed an income tax and benefit return with the Canada Revenue Agency for the tax year that ended before the beginning of the benefit payment period (e.g. they would need to have filed their 2024 tax return to receive Benefit payments for July 2025 to June 2026). The only exception is for people who are younger than 18 years and six months at the end of the tax year. They would not be required to have filed an income tax and benefit return to be eligible for the Benefit (although they may still want to for other reasons); instead, their income would be assumed to be $0. This exception is intended to help support a smooth transition of youth with severe and prolonged disabilities from the Child Disability Benefit (which would end the month of their 18th birthday) to the Benefit (which would start the month following their 18th birthday). Individuals would be able to file their income tax and benefit return and apply for the Benefit at any time, including after the payment period has started (e.g. any month throughout the year).

Application

While the proposed Regulations do not establish the application process, they would provide flexibility for Service Canada to design it. Service Canada intends to design an application process in which an individual would be able to apply for the Benefit at any time throughout the year and would not need to apply again unless they become ineligible and then regain eligibility (see above eligibility criteria). If an individual is no longer eligible to receive Benefit payments because they become incarcerated in a federal penitentiary, the person must notify Service Canada in writing of their release in order to resume payment of the Benefit but they will not need to reapply.

Individuals would need to apply for the Benefit through Service Canada. There would be multiple application channels, all of which will undergo thorough accessibility testing. These channels include

All the application methods would also be available for legal representatives applying on behalf of someone else. To apply on behalf of an applicant, the legal representative would have to complete an application through Service Canada and provide documents to prove their identity and legal authority to act on behalf of the applicant.

Once an application has been submitted and assessed, Service Canada would provide a notice to the applicant to confirm either approval or denial of the Benefit application.

Service Canada is also taking steps to develop guidance documents that will outline the process for applying to the Benefit, which will be available in spring 2025.

Approval of application

There may be situations when an individual did not receive Benefit payments in previous months despite being eligible, because they had not applied for the Benefit. The proposed Regulations provide that an application is deemed to be approved on the earliest day in which the applicant is eligible for the Benefit. This means that, when an individual applies, if they were eligible during one or more months in the prior 24 months, they could receive payments for those months (but not for any period before July 2025). If someone is not eligible for the Benefit in the month in which they are applying, that individual would still be able to receive any Benefit payments for which they were eligible during one or more months in the previous 24 months.

How the Benefit amount will be calculated

The proposed Regulations establish the Benefit amount that someone could receive. The following factors would determine how this amount is calculated:

Each of these concepts is explained below in greater detail.

Definition of income

Because the proposed Regulations are targeting working-age Canadians with disabilities with low or modest income, the amount of the Benefit would vary based on an individual’s income. Under the proposed Regulations, income includes all sources of money that individuals and their spouse or partner, if applicable, must report on their income tax and benefit return to the Canada Revenue Agency each year. However, this definition of income excludes certain sources of money that are intended for particular needs, like child benefits and withdrawals from a Registered Disability Savings Plan. The definition of income under the proposed Regulations would also not include any payments of the Benefit itself.

The amount of an individual’s Benefit would be calculated based on the individual’s income for the previous tax year. If an individual filed their income tax and benefit return for the previous tax year after the start of a payment period, they could get payments for the earlier months in that period.

In the proposed Regulations, the income for the previous tax year of an individual who is younger than 18 years and 6 months is considered to be $0.

If an individual’s income tax data is updated in any given year, their Benefit payments would be automatically recalculated for the corresponding payment period.

Maximum amount

Under the proposed Regulations, the maximum amount of the Benefit that an individual could receive would be $200 a month for a total of $2,400 a year. As described below, this amount would be indexed to inflation.

Income thresholds

An income threshold is the amount of income that an individual could have before the amount of their Benefit is reduced.

Under the proposed Regulations, $23,000 is the income threshold for a single individual and $32,500 is the income threshold for the combined income of a couple (cohabiting spouse or common-law partner). This means that a single individual could still receive the full Benefit amount ($2,400 per year for the July 2025 to June 2026 payment period) if their income from the previous year was $23,000 or lower. If their income from the previous year was over $23,000, their maximum Benefit amount would begin to decrease.

Couples have higher income thresholds to reflect both their higher living expenses (for two people) and shared costs (such as shared housing).

The income threshold amounts would be indexed to inflation.

Indexation

In general, when a benefit is indexed, it means that the benefit amount is adjusted to account for inflation. Inflation is an increase in the general price level of goods and services in the economy. The federal government uses the Consumer Price Index to adjust, or “index,” benefits.

The proposed Regulations state that the maximum Benefit amount, income thresholds, and working income exemptions would be adjusted once a year to account for increases in the cost of living. Because the payment period for the Benefit is proposed to be July to June, the adjustment would take place in July, starting with July 2026.

Working income exemption

A working income exemption means that a certain amount of working income (such as employment or self-employment income) is excluded from determining the Benefit amount. The purpose of a working income exemption is to reduce barriers to work and allow individuals receiving the Benefit to keep money they earned through employment. The following working income exemptions would apply under the proposed Regulations:

Once the working income exemption is applied, the Benefit amount would be calculated based on the individual’s reported income for the previous tax year.

The working income exemption amounts would be indexed to inflation.

Reduction rates

The Benefit amount decreases if an individual or a couple has income that is higher than the income threshold (i.e. $23,000 for singles and $32,500 for couples without working income; $33,000 for singles and $46,500 for couples who are able to take full advantage of the working income exemption [see above]). The reduction rate helps ensure that individuals with low incomes receiving the Benefit are the ones who get the highest Benefit amount.

There are two reduction rates that would apply depending on an individual’s circumstances:

For couples where both individuals are eligible for the Benefit, the reduction rate is halved (10% instead of 20%) to ensure that they are treated comparably to other households.

Once an individual’s income increases to a certain level above the income threshold, their Benefit payment will be $0. This is known as the “phase-out income.” An individual’s phase-out income varies based on two factors: the individual’s family status (e.g. whether single or in a couple, and, if in a couple, whether both are eligible for the Benefit) and whether they have a working income exemption (such as employment or self-employment income). The six possible phase-out incomes for the Benefit, based on family status and with the maximum working income exemptions, are outlined in the table below.

Table 1: Phase-out incomes for the Benefit
Family composition Single Couple with 1 person eligible for the Benefit Couple where both individuals are eligible for the Benefit
Phase-out income without working income exemption $35,000 $44,500 $56,500
Phase-out with maximum working income exemption included $45,000 $58,500 $70,500
Changes during a payment period

The Benefit amount may be modified during the year due to certain changes in the household status of the individual receiving the Benefit — namely, if there is a change in their relationship status (i.e. they enter into a new relationship with a cohabiting spouse or common-law partner, or if they separate or divorce from their spouse or partner or their spouse or partner dies). Additionally, there may be a change if a beneficiary’s spouse or partner also starts to receive Benefit payments. Payment of the Benefit will stop if the individual receiving it is no longer eligible. For example, this may happen if the individual ceases to be resident in Canada and has informed the Canada Revenue Agency of their change in residency.

How the Benefit would be paid

The proposed Regulations also establish the Benefit payment periods and what happens in the case of incarceration, suspension of benefits, and the death of someone receiving the Benefit.

Payment periods

The proposed Benefit payment period is July to June, with the first payment period anticipated to begin in July 2025. An individual’s Benefit payments for July to June would be based on their income tax and benefit return filed with the Canada Revenue Agency for the previous tax year. For example, an individual would have to file an income tax and benefit return for the 2024 tax year in order to receive Benefit payments in the July 2025 to June 2026 payment period.

Under the proposed Regulations, the first month an individual could receive a Benefit is the month following the month their application is approved, and the earliest an application could be deemed to be approved is June 2025. To begin receiving Benefit payments in July 2025, an individual would have to meet the eligibility criteria for the Benefit in June 2025.

Individuals would receive a Benefit payment each month if their monthly Benefit amount is above $20.00. If an individual’s monthly Benefit payment is calculated to be $20.00 or below, the individual would instead receive a single Benefit payment that combines all monthly Benefit payments that they are owed for that payment period. The amount would be recalculated every July as new income information becomes available through the income tax system.

Incarcerated persons

Under the proposed Regulations, when a person applies for the Benefit while they are incarcerated, if they are eligible for the Benefit the month they are released, the Benefit would be payable that month.

If a person was receiving the Benefit before they became incarcerated, the proposed Regulations provide that they must notify Service Canada, in writing, of their release date, and that the Benefit would be payable to them the month in which they are released. If they notify Service Canada after they are released, the first payment of the benefit would cover the month of their release and any months between then and the month the payment is sent.

Suspension of benefits

The Regulations propose that an individual’s payments may be suspended if there are reasonable grounds to believe that the individual is not eligible for the Benefit. If an individual’s payments are suspended, their eligibility status would be reviewed within a reasonable time by Service Canada. The individual’s payments would be reinstated if it was determined that they were eligible to receive the Benefit. The first payment would be a lump sum that is equal to the amount of the Benefit that they would have received if their payment was not suspended.

There may also be circumstances when an individual receiving the Benefit may want to suspend their payments for a period of time. Under the proposed Regulations, they could write to Service Canada to request that their Benefit be suspended. When an individual requests to have their Benefit reinstated, their payments would resume the month following the month of the request or the month chosen by them, whichever is later.

Death of a Beneficiary

If an individual receiving the Benefit dies, the executor or administrator of the individual’s estate or the individual’s heir must notify Service Canada as soon as feasible after the death. The executor or administrator of the estate or the individual’s heir would receive a Benefit payment for the month in which the individual died if the individual did not yet receive a Benefit payment for that month. Service Canada would pay the executor or administrator of the estate or the individual’s heir any outstanding Benefit amounts that are owed to the individual who died. If there is no executor, administrator or heir, the Regulations provide that the Benefit would be payable to a person or agency designated by the Minister.

If an individual who is receiving the Benefit disappears and is presumed dead, the proposed Regulations give authority to Service Canada to deem them dead for the purposes of the Benefit. If it is later determined that the individual is alive, they would be paid a lump sum for the period they were presumed dead.

Representatives for persons who are incapable of managing their own affairs

When an individual is unable to manage their own affairs, if they have a legal representative (including power of attorney, guardians, and trustees), the representative would be able to apply for the Benefit on the individual’s behalf or request that the government reconsider a decision on the individual’s behalf or appeal a decision on the individual’s behalf.

The proposed Regulations also include provisions to pay the Benefit to an individual’s legal representative. If an individual who is unable to manage their own affairs does not have a legal representative, a person or agency could enter into an agreement with Service Canada on behalf of the Minister to administer and expend the Benefit on the individual’s behalf.

Amendments, rescissions and reconsiderations of decisions
Amendments and rescissions

The proposed Regulations would allow decisions made by Service Canada to be changed (amended) or cancelled (rescinded) if new information becomes available. For example, a decision originally made about someone’s eligibility for the Benefit could be changed or cancelled if new information about their income or household status became available. An individual would be notified by Service Canada of any changes to their Benefit.

Reconsiderations

The proposed Regulations also provide a process where individuals could request that Service Canada reconsider a decision it made. Individuals could request a reconsideration regarding their eligibility for the Benefit, the Benefit amount, and any monetary penalties imposed on them.

Requests for reconsiderations would need to be made to Service Canada within 180 days after the person is notified in writing of the decision. A request for reconsideration would have to be made in writing and include some information about the individual as well as the reasons for requesting the reconsideration. Service Canada would review the original decision and the reason for the request and would send a decision letter after a reconsideration decision is rendered.

Service Canada would grant an extension to the 180-day time limit for making a request for reconsideration if it found that the applicant’s ability to respect the deadline was impacted by at least one of the situations set out in the Regulations. These include

Appeals

Amendments to the Department of Employment and Social Development Act, the Tax Court of Canada Act and the Federal Courts Act have been proposed in the Budget Implementation Act, 2024, No. 1, which relate to appeals under the CDB Act. These amendments are intended to support the appeals process set out in the proposed Regulations. The proposed amendments must be approved by Parliament and be brought into force before the proposed regulatory provisions relating to appeals of decisions made under the CDB Act can be finalized.

If a person disagrees with a reconsideration decision, they would be able to appeal the decision to the Social Security Tribunal (the Tribunal) within 90 days of receiving the reconsideration decision. Individuals could also appeal the decision to not extend the time for making a request for reconsideration.

The Tribunal hears appeals related to federal social security programs (including Employment Insurance, the Canada Pension Plan, and Old Age Security) and streamlines and simplifies the appeals process for individuals who disagree with decisions made under these programs. The Tribunal has a focus on plain language and services to help underrepresented individuals navigate the appeals process.

The structure of the Tribunal and some of the details of the appeals process are in the Department of Employment and Social Development Canada Act. The Tribunal has two divisions: the General Division and the Appeal Division. All appeals start at the General Division by filing a notice of appeal. How to file a notice of appeal and what it must include will be set out on the Tribunal’s website. If an individual makes an appeal to the Tribunal that is related to income, the Tribunal would refer that issue to the Tax Court of Canada (Tax Court) for decision.

If there is a referral to the Tax Court, the Tribunal would need to notify the person who made the appeal and Service Canada and send the necessary documents to the Tax Court. After the Tribunal has sent the necessary documents to the Tax Court, a judge and court date would be determined. This information would be passed on to the person who made the appeal, who may need to provide written information for the court proceeding. At court, the case would be presented to a judge and a decision would be made on the same day or not later than 90 days after the hearing is concluded. The decision would be forwarded to the Tribunal and the person who made the appeal. Once the Tax Court makes its decision, or if there are no issues related to income, the General Division of the Tribunal would hear and decide the appeal on all other issues.

If an individual disagrees with the General Division decision, they would need to ask for permission to appeal to the Appeal Division. The application for permission to appeal would need to be filed with the Appeal Division within 90 days of getting the written decision from the General Division.

If the Appeal Division refuses permission to appeal, a decision would be issued and the file closed. If the Appeal Division grants permission to appeal, the appeal would proceed and be heard and determined as a new proceeding. If an individual disagrees with an Appeal Division decision, they could apply to the Federal Court or Federal Court of Appeal (depending on the decision) for judicial review within 30 days.

The correction of administrative errors

Where administrative errors have led to a person not receiving the Benefit or part of a Benefit, the proposed Regulations would allow for the errors to be corrected. For example, if an individual would have been entitled to the Benefit but did not receive it because of a mistake, the Regulations would allow the mistake to be corrected.

Verifying compliance, administrative monetary penalties and offences
Verifying compliance

The proposed Regulations also include powers to verify that the Benefit is going only to individuals who are eligible to receive it. Under the proposed Regulations, Service Canada would be able to inspect documents that relate or may relate to a person’s eligibility for the Benefit or an amount of the Benefit. Service Canada could also require that an individual provide them with any information or any document that they may require in order to verify compliance. They would have to get authorization from a judge before requesting information or documents from someone who is not an applicant, beneficiary or representative.

Administrative monetary penalties: violations

The proposed Regulations also set out administrative monetary penalties. Under the proposed Regulations, the following acts would constitute a violation and the person who committed the violation could be liable for a monetary penalty:

The proposed Regulations also state, for greater certainty, that no administrative monetary penalty may be imposed on a person if they mistakenly believed that what they stated in a Benefit application was true or if they believed that they, or the person on whose behalf they applied, were eligible to receive the Benefit.

Limitations: under the proposed Regulations an administrative monetary penalty could not be given to a person if they are already being prosecuted for the same act as an offence. As well, the Regulations propose that an administrative monetary penalty could not be given to a person if five years have passed since the Minister became aware of the violation.

Cancelling an administrative monetary penalty: the proposed Regulations state that an administrative monetary penalty could be cancelled (rescinded) if there are new facts or if the administrative monetary penalty had been given by mistake.

Administrative monetary penalties: amounts

The proposed Regulations include the ability to issue penalties in the amount of 15% of the maximum annual Benefit amount for a first violation and 50% of the maximum annual Benefit amount for every subsequent violation. The penalty would be based on the maximum annual Benefit amount that had been in place during the payment period in which the violation had been committed.

Offences

The proposed Regulations provide that a person would be guilty of an offence punishable on summary conviction if they

The purpose of these offences is to ensure that individuals are not knowingly making false claims or using a false identity to obtain or steal the Benefit from eligible individuals. Offences require intent and would not apply where individuals made errors in good faith.

The proposed Regulations establish the offences but do not set fines or terms of imprisonment. The default fines or terms of imprisonment would be those set out in subsection 787(1) of the Criminal Code, which states: “Unless otherwise provided by law, every person who is convicted of an offence punishable on summary conviction is liable to a fine of not more than $5,000 or to a term of imprisonment of not more than two years less a day, or to both.” This is similar to the approach taken under the Old Age Security Act and the Canada Pension Plan.

The identification and recovery of debts and overpayments

Under the proposed Regulations, any overpayments of the Benefit, as well as any administrative monetary penalties, would be seen as money owed to the government (i.e. the Crown) and the proposed Regulations would allow for recovery of the debt, in either a lump-sum payment or, if agreed to, by instalment payments in any amount that does not cause undue hardship to the person. The proposed Regulations also provide that debts that have not been recovered could be certified and registered in the Federal Court or a superior court of a province. Such a certificate would have the same force and effect as if it were an order of the court. This would provide another way to recover the debt.

The Financial Administration Act includes a provision which allows debts owed by individuals to be deducted from future payments to the person by the Government of Canada. This means, for example, that if someone owes money under the proposed Regulations, the amount of the debt could be deducted from payments that would have otherwise been made to the individual, such as a tax refund.

The proposed Regulations set a six-year limitation period for recovering debts.

The proposed Regulations provide that no interest would accrue on debts from overpayments unless the overpayment was the result of an offence or an act for which an administrative monetary penalty had been imposed.

Giving notice of constitutional challenges in appeals

The proposed Regulations also include an amendment to the Social Security Tribunal Regulations, 2022 to clarify that an individual who wants to challenge the constitutional validity, applicability or operability of a provision of the CDB Act would need to file a notice with the Tribunal and provide notice to the Attorney General of Canada and the attorney general of each province at least 10 days before the date set for the hearing of the appeal. In the notice, an individual would need to identify the provision that was being challenged and the facts and legal arguments supporting the challenge. This requirement is already in place for constitutional issues in appeals under the Canada Pension Plan, the Old Age Security Act and the Employment Insurance Act.

Regulatory development

Consultation

Disability community

In June 2023, shortly after the CDB Act received royal assent, Employment and Social Development Canada launched a two-phase plan to engage the disability community and other stakeholders in the development of Benefit regulations. In this plan, the first phase of engagement would inform the drafting of the regulations by inviting comment on the general regulatory authorities under the CDB Act; the second phase of engagement would be the Government of Canada’s formal regulatory development process and would start with the prepublication of the draft regulations in Part I of the Canada Gazette.

The first phase of this engagement, which took place from August 2023 to February 2024, comprised the following:

In total, over 8 000 Canadians responded during the first phase of the Benefit regulatory engagement and provided over 5 000 pieces of input.

Engagement with provinces and territories

Multilateral engagement with provinces and territories has been ongoing through the Federal/Provincial/Territorial Ministers Responsible for Social Services Forum, the Federal/Provincial/Territorial Deputy Ministers Responsible for Social Services Forum and the Persons with Disabilities Advisory Committee. The Benefit was first introduced to provinces and territories at a July 2021 meeting of Federal/Provincial/Territorial Ministers Responsible for Social Services. Bilateral meetings have also taken place at the officials’ level.

Throughout 2022–2023 and 2023–2024, provincial and territorial ministers were engaged through bilateral meetings to discuss the objectives and parameters of the Benefit. Discussions are ongoing. Provinces and territories provided early feedback with respect to the Benefit amount as announced in the 2024 Budget, which is summarized below. Per the CDB Act, any agreements reached with provinces and territories regarding the Benefit will be made public.

Views and feedback received

The text below summarizes the most prominent and recurring comments that emerged from phase one of the regulatory engagement process, as well as stakeholder sentiment expressed since the publication of some Benefit design details in the Government of Canada’s 2024 Budget in April 2024. The text below also summarizes the Department’s response to this feedback.

Eligibility

The Department reviewed all stakeholder feedback received in phase one of the regulatory engagement process on the three key eligibility criteria for the Benefit: residency, age, and disability. While there were very few comments regarding residency, stakeholders provided significant feedback on age and disability.

In relation to age, while stakeholders were supportive of efforts to reduce poverty among working-age persons with disabilities, some stakeholders raised concerns about excluding other age groups from eligibility for the Benefit, noting that persons with disabilities who are under 18 and older than 65 years of age also experience high levels of poverty.

Looking specifically at the use of the Disability Tax Credit, some stakeholders suggested that individuals who qualified for any existing disability supports, including the Disability Tax Credit and other federal programs, should be automatically eligible for the Benefit. A number of respondents to the online engagement tool expressed specific support for the Disability Tax Credit as the sole eligibility criterion. While many stakeholders also criticized the Disability Tax Credit and urged the Government of Canada to look at other or new ways to determine disability eligibility, such as self-attestation and receipt of provincial and territorial disability benefits, many also strongly urged the Government to prioritize implementing the Benefit as quickly as possible so as to begin making payments.

In April 2024, the Government of Canada’s 2024 Budget shared information on the Government’s commitment to use the Disability Tax Credit to determine disability status for the Benefit. Reaction from the disability community has been strong, with much criticism focused on the burden that applying for the Disability Tax Credit would place on persons with disabilities, as well as the fact that some persons with disabilities would not qualify for the Disability Tax Credit given its focus on severe and prolonged impairments.

Government response:

Using the Disability Tax Credit was determined to be the best option in establishing disability eligibility because it would ensure the government maintains a consistent and equal approach to determining disability eligibility for the Benefit across all jurisdictions. It would significantly streamline the application process to make it more accessible, given over 500 000 working-age persons with disabilities already hold a certificate. The Disability Tax Credit also covers a broad range of physical and mental functions and assesses their impact on daily living, while also focusing on persons with the greatest disability-related needs. Using the Disability Tax Credit would also avoid adding new complexity to the existing federal disability measures, as it would provide a simplified application process and timely implementation (i.e. a new system to adjudicate disability eligibility would not need to be developed). The Disability Tax Credit is part of the eligibility criteria for other federal programs (such as the Registered Disability Savings Plan, the Canada Worker Benefit Disability Supplement, and the Child Disability Benefit) and a few provincial/territorial programs (e.g. Newfoundland and Labrador’s Income Supplement Disability Amount, British Columbia’s Home Renovation Tax Credit).

Many stakeholders expressed concerns about barriers to accessing the Disability Tax Credit, such as the cost to access medical professionals to complete the application form. To address this issue, Budget 2024 also proposed funding, to assist in obtaining the medical forms required to apply for the Disability Tax Credit. Additionally, Budget 2024 announced funding of $22.4 million over five years starting in 2025–26, and $3.8 million per year ongoing, for a navigation support program delivered by community organizations with expertise in disability income support and which would help connect vulnerable persons with disabilities to federal, provincial, territorial, and/or local programs that could assist them — including the Benefit.

The Canada Disability Benefit application process

During the first phase of the regulatory engagement process, stakeholders overwhelmingly expressed support for an accessible and inclusive Benefit application process and the provision of supports for those who require assistance. Many stakeholders also stated that an inclusive application process should emphasize supported decision-making over guardianship and other forms of substituted decision-making. Stakeholders also suggested that the Government avoid adding complexity to the application process for applying for Benefits.

Government response:

As recommended by stakeholders, Service Canada is taking steps to create an application process that is inclusive and accessible. Legal representatives would be able to apply on behalf of an individual when they are incapable of managing their own affairs. The specifics of the application process are not detailed in the proposed Regulations but are intended to be in plain language with multiple ways to apply, including online and in person. Further details will be communicated on the Benefit web pages and through public communications prior to the launch of the Benefit.

Benefit amount calculations and income definitions

During the first phase of the regulatory engagement process, stakeholders expressed strong support for a benefit amount that would reduce poverty among persons with disabilities. There was also very strong support for indexing the Benefit to inflation.

As well, many concerns were raised about the possibility that other federal benefits and/or benefits and supports provided by provinces and territories could be reduced, or “clawed back,” for individuals receiving the Benefit. Stakeholders were also concerned about how the Benefit might treat employment earnings and that, if the Benefit were to be reduced too drastically in response to any income individuals might have from work, this would create disincentives to employment or training.

There was very strong support among stakeholders for adopting an individual income test that disregards spousal/partner income, considering spousal/partner income might reduce a Benefit entitlement or eliminate it altogether.

With the publication of the proposed maximum Benefit amount ($200 monthly, or $2,400 annually) in Budget 2024, many stakeholders have voiced concern that the maximum Benefit amount will have limited impact on the severe poverty experienced by working age persons with disabilities in Canada.

Provinces and territories made the following recommendation in their early feedback on the 2024 Budget:

Government response:

Administrative processes

Stakeholders also provided feedback on reconsiderations and appeals of decisions, correction of administrative errors, compliance, and enforcement and the recovery of overpayments and debts:

Government response:

Modern treaty obligations and Indigenous engagement and consultation

Modern treaty obligations

A modern treaty implications assessment was conducted in accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation. According to this assessment, under Article 32 of the Nunavut Agreement (which obligates the Government of Canada to provide Inuit with an opportunity to participate in the development of social and cultural policies), the Government of Canada must engage the Inuit of Nunavut, as represented by Nunavut Tunngavik Incorporated (NTI).

Indigenous engagement and consultation

To meet the obligation under Article 32 of the Nunavut Agreement and to respect the government-to-government relationships embedded in modern treaties and self-government agreements, in October 2022, letters and discussion guides were sent to modern treaty and self-government agreement partners, including NTI, to request their input into the design and delivery of the Benefit. The discussion guide provided information on the Benefit and requested input on issues respondents would like to see considered in the design and delivery of the benefit. Two responses were received and a bilateral meeting was also held in May 2023 with Inuit Tapirit Kanatami, which submitted a position paper on the rights for Inuit persons with disabilities in relation to the Benefit.

Following the publication of the Benefit regulations online engagement tool, in fall 2023, modern treaty and self-government agreement partners, including NTI and National Indigenous Organizations, were notified about the online engagement tool and invited to participate. In January 2024, they were also provided a discussion guide on the Canada Disability Benefit Regulations and were invited to submit responses in writing or through bilateral discussions with departmental officials. The discussion guide provided information on the issues involved in, and the process for, developing the proposed Regulations. Bilateral discussions were held with four National Indigenous Organizations, and one written response to the discussion guide was received. One modern treaty partner, the Tłı̨chǫ Government, requested a bilateral meeting which was held in February 2024. No other responses were received.

Employment and Social Development Canada continues to engage our Indigenous partners as we move forward with the development of regulations and the delivery of the Benefit. In April and May 2024, after the tabling of the federal budget, modern treaty and self-government partners and National Indigenous Organizations and were sent a post-budget update on the Benefit. Additionally, Employment and Social Development Canada will notify modern treaty and self-government agreement partners and National Indigenous Organizations when the draft regulations are published in the Canada Gazette. The communications will also offer bilateral meetings with Employment and Social Development Canada officials. Employment and Social Development Canada intends to continue actively engaging modern treaties and self-government agreement partners, including the NTI, and National Indigenous Organizations on the Canada Disability Benefit.

To date, Indigenous governments and organizations advocated for an inclusive and culturally appropriate approach to the design and delivery of the Benefit. They noted concerns with complex application processes, including the lack of access to medical professionals; the need for Indigenous-specific and community-based navigation services; the impacts of racism and discrimination in the medical system; the importance of including an Indigenous understanding of disability in the design and delivery of the Benefit; and the need to ensure other supports and services are not negatively impacted by the Benefit.

Instrument choice

No alternative policy instruments are available to implement the CDB Act, which requires that all Benefit design elements be established by regulation.

Regulatory analysis

Benefits and costs

An important first step in developing a cost-benefit methodology is establishing a baseline scenario against which options may be measured. For this analysis, the baseline scenario is one where the Benefit never becomes payable. The baseline scenario is then compared with the regulatory scenario, in which the Benefit regulations come into force in July 2025 and eligible Canadians may begin accessing the Benefit.

The costs and benefits of the regulatory amendments are monetized from 2025–26 to 2034–35. Results are presented in present value (PV) terms using a discount rate of 7% and are expressed in 2024 dollars. For further details regarding the methodology, a detailed cost-benefit analysis report is available upon request at the following email address: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca.

Consultations on cost and benefit impacts were conducted through roundtables with disability and other stakeholders, online engagement open to all Canadians, emails and a telephone line. Key stakeholders within the Government of Canada were also consulted internally.

The cost-benefit analysis makes assumptions around variables that may be subject to uncertainty. It is important to acknowledge this uncertainty, in particular, the presence of uncertainty in variables on which impacted external stakeholders were not consulted. For this reason, a sensitivity analysis was conducted to examine how changes in these variables would impact the cost-benefit analysis results. For sensitivity analysis findings, please consult the cost-benefit analysis report.

The regulatory amendments are estimated to cost $525,605,679 (PV) over 10 years. These consist of costs to the Government of Canada of $252,901,179 and costs to Benefit applicants of $272,704,499. Benefits are addressed qualitatively and quantitatively.

The primary purpose of this regulatory proposal is to authorize a transfer of funds, paid by the Government of Canada to eligible Canadians. The value of this transfer is estimated to be $8,327.9 million (PV) (in 2024 dollars) over 10 years (from 2025–26 to 2034–35). However, transfers are not considered as incremental costs or benefits because they redistribute funds with no expectation for anything in return. Transfers are not considered in scope for the purposes of a cost-benefit analysis (CBA). For this reason, the value of this transfer is not reported in the cost benefit statement results. It is, however, acknowledged qualitatively.

The cost-benefit analysis monetizes the costs to government to administer and deliver the Benefit, and the costs to eligible Canadians to apply for the Benefit. The approach taken to estimating the number of Benefit recipients is presented below.

First, the number of recipients of the Benefit was calculated using linked records from the 2017 Canadian Survey on Disability and the Canada Revenue Agency’s T1 Family File. These data sources were used to develop a profile of the characteristics of those currently deemed eligible for the Disability Tax Credit. However, many lower-income individuals who are eligible for the Disability Tax Credit have not applied for it because their income was too low to owe taxes. It is assumed that the Benefit, once it becomes available, will increase the take-up of the Disability Tax Credit at lower levels of income. A complex model, accounting for disability type, severity, and income, was developed to measure the likely magnitude of this behavioural response. This allowed for estimation of the number of Canadians who would be incentivized to apply for the Disability Tax Credit due to the availability of the Benefit.

Table 2: Working-age Disability Tax Credit certificate holders with and without the Benefit
  2025–26 2026–27 2027–28 2028–29 2029–30 2030–31 2031–32 2032–33 2033–34 2034–35
Baseline scenario (projections without the Benefit 590 000 600 000 610 000 620 000 630 000 640 000 650 000 660 000 670 000 680 000
Additional working-age Disability Tax Credit holders due to the Benefit 140 000 210 000 280 000 350 000 420 000 420 000 420 000 420 000 410 000 410 000
Total working-age Disability Tax Credit holders 730 000 810 000 890 000 970 000 1.05M 1.06M 1.07M 1.08M 1.08M 1.09M

Source: Canadian Survey on Disability, 2017, and T1 Family File

Because the Benefit is targeted at Canadians with modest incomes, many Disability Tax Credit holders will not receive any Benefit payments, as their incomes are too high for them to be eligible. To estimate the number of Benefit recipients each year, the linked tax and survey data was analyzed on a micro-level. Each Disability Tax Credit-eligible person’s net family income was calculated and entered into the Benefit calculation formulas set out in the proposed Regulations (with inflation adjustments for the lower price level at the time the survey data was collected). The number of individuals entitled to the Benefit was aggregated using survey sampling weights and further weighted to match the composition of the Disability Tax Credit-eligible population.

Finally, the number of Benefit recipients per year was an important variable in estimating the cost to government to administer and deliver the benefit and the value of the transfer, as well as the costs to applicants to undertake the application process to qualify for the benefit (including opportunity costs).

For the cost to applicants to apply for the benefit, the number of annual Benefit applicants was set equal to the change in the number of Benefit beneficiaries each year. It is assumed that all recipients will only have to apply once for the Benefit. It should be noted that this assumption results in a slight underestimate of the number of people that will have to fill out the application form, as persons who lose and regain eligibility for the Benefit (due to a change in disability, residency, marital, or immigration status) may have to reapply. The number of people who will be in this situation is not expected to be significant; hence, it is acknowledged qualitatively. The figures below estimate the number of applicants annually and assume that it will take up to four years for the population who are eligible to apply for the benefit. For this reason, take up is staggered till 2028–29. After this period the number of people who will apply for the Benefit is assumed to grow by population growth.

Table 3: Benefit beneficiaries and applicants by year
  2025–26 2026–27 2027–28 2028–29 2029–30 2030–31 2031–32 2032–33 2033–34 2034–35
Number of Benefit beneficiaries 465 000 515 000 560 000 610 000 615 000 620 000 625 000 630 000 635 000 640 000
Number of Benefit applicants 465 000 50 000 45 000 50 000 5 000 5 000 5 000 5 000 5 000 5 000
Costs to Government

Cost estimates regarding the delivery and administration of the Benefit were developed by Employment and Social Development Canada/Service Canada, the Canada Revenue Agency, and the Administrative Tribunals Support Service of Canada using standard corporate costing formulas and drawing on past experience delivering comparable benefits (such as Service Canada’s Guaranteed Income Supplement) and adjudicating applications for the Disability Tax Credit. The estimated volume of Benefit beneficiaries per year was the initial starting point for this costing. It should be noted that the figures in the Cost-Benefit Statement pertaining to government costs will be revised as they are sourced from the funding awarded in Budget 2024 and will be reassessed for final publication.

Some costs will be incurred prior to the registration of the proposed Regulations, given the goal set in Budget 2024 for the issuance of Benefit payments in July 2025. They are not included in this analysis and are deemed as sunk costs for CBA purposes. Other costs that were included in Budget 2024 are not directly incremental to these regulations but rather flow from the CDB Act. They too are not included in the CBA results.

Costs to Canadians

Canadians with disabilities may incur costs to access the Benefit. This cost will take the form of securing a Disability Tax Credit Certificate (T2201). As such, applicants may need to get forms filled out by a qualified health practitioner. They may also need assistance to file income tax and benefit returns. Some applicants could pay substantial amounts for professional advisors such as accountants and lawyers, tax preparers, and Disability Tax Credit “promoters” — specialized firms that offer technical assistance in qualifying for the Disability Tax Credit. Budget 2024 proposed funding to assist with the cost of obtaining the medical forms required to apply for the Disability Tax Credit, a measure intended to help ensure access to the Benefit; however, the funding is not part of this regulatory proposal and therefore is not included in the cost-benefit analysis as offsetting the costs to applicants to qualify for the Benefit.

Hence, three major categories of costs to Canadians were included in analyzing this proposal.

Costs of applying for the Disability Tax Credit

As mentioned above, some Benefit recipients will have to apply for a Disability Tax Credit eligibility determination. This creates three categories of costs:

Renewals of newly issued temporary Disability Tax Credit certificates (37% of certificates for working-age Canadians are temporary) were accounted for in later years, assuming, based on Canada Revenue Agency subject-matter expertise, that they will expire on average every four years. Indeterminate certificates do not require renewal.

Costs of filing income taxes

It is assumed, based on Employment and Social Development Canada subject-matter expertise, that 20% of Benefit applicants will file their income taxes specifically to obtain the Benefit. This creates two categories of costs:

Costs of completing the Benefit application form

All applicants will have to fill out a form with a small number of fields. This creates a cost of $14.43 per application measured by the value of their time ($28.85 per hourfootnote 5 times 0.5 hours).

Benefits to Canadians

There are a number of quantified and qualitative benefits.

The main quantified benefit of the regulatory proposal is the relief of poverty. The Market Basket Measure (MBM) is Canada’s official poverty line and represents the price of a basic set of goods and services in every region of the country for a family of a given size. In 2023, for a single person in a small urban centre in Quebec, this line is approximately $22,600; for a single person in Iqaluit, it is approximately $54,500.

Rather than make general assumptions about the number of recipients in poverty, the size of their families, and the amount of money required to lift them over the MBM threshold, departmental officials undertook individual analysis of the records in the Canadian Survey on Disability. In each case, the following factors were examined to determine whether the family would be lifted out of poverty by receiving the Benefit:

After this analysis was performed on a micro level, all individual records were aggregated using survey sampling weight, as well as weights representing the probability of each individual being Disability Tax Credit-eligible, to obtain an estimate for the number of recipients who will be lifted out of poverty as a result of these regulations.

The number of additional family members per Benefit recipient was assumed to be 1.6 (based on an analysis of the Benefit-eligible population). The number of family members benefiting indirectly from each Benefit recipient crossing the poverty line was assumed to be 0.6 (based on an analysis of the average size of families living in poverty within the eligible population).

Results are shown in the tablefootnote 6 below. Due to the uncertain trajectory of poverty rates over time, however, these forecasts should be treated with caution beyond the end of the current decade.

Table 4: Recipients, poverty impact, and family member statistics by year
  2025–26 2026–27 2027–28 2028–29 2029–30 2030–31 2031–32 2032–33 2033–34 2034–35
Number of recipients 465 000 515 000 560 000 610 000 615 000 620 000 625 000 630 000 635 000 640 000
Family members of recipients 745 000 820 000 895 000 975 000 980 000 990 000 1.00M 1.01M 1.01M 1.02M
Recipients originally in poverty 220 000 240 000 265 000 285 000 290 000 290 000 295 000 295 000 300 000 300 000
Working-age Canadians with disabilities lifted out of poverty 20 000 20 000 25 000 25 000 25 000 25 000 25 000 25 000 25 000 25 000
Family members of those lifted out of poverty 10 000 15 000 15 000 15 000 15 000 15 000 15 000 15 000 15 000 15 000

For persons with disabilities and their family members, this benefit may improve their quality of life with respect to:

Applying for a Disability Tax Credit and filing taxes will also open the door to other federal benefit programs that Benefit recipients may not have previously accessed (for instance, the Registered Disability Savings Plan (RDSP), the GST/HST Credit). This indirect benefit could be very significant in some instances; over their lifetimes, RDSP beneficiaries can receive up to $20,000 in government contributions to their savings plan even if they cannot afford to contribute to it in their own right.

Better income will also improve recipients’ ability to take care of their health, which may lead to positive health incomes, possibly less reliance on health care over the long run, and greater opportunities to participate in the labour market.

Cost-benefit statement
Table 5: Monetized costs (millions)
Impacted stakeholder Description of cost Base year Year 5 Final year Total (present value) Annualized value
Canadians Canada Disability Benefit application costs $6,708,271 $72,132 $72,132 $8,241,960 $1,173,470
Disability Tax Credit application costs $24,327,917 $26,030,871 $29,631,403 $164,208,720 $23,379,627
Filing income tax and Benefit returns costs $11,411,617 $15,092,783 $15,706,311 $100,253,819 $14,273,888
Government Administrative costs to Employment and Social Development Canada $22,600,163 $23,814,012 $24,290,292 $167,894,345 $23,904,378
Administrative costs to the Canada Revenue Agency $13,026,445 $9,843,486 $10,040,356 $72,893,279 $10,378,363
Administrative costs to the Administrative Tribunals Support Service of Canada $1,665,034 $1,715,837 $1,750,154 $12,113,555 $1,724,698
All stakeholders Total costs $81,321,457 $76,569,121 $81,490,647 $525,605,679 $74,834,424

A sensitivity analysis was undertaken by varying two of the assumptions regarding costs to Canadians: the fee required for medical professionals to complete Part B of the Disability Tax Credit form and the proportion of Benefit applicants who would not otherwise file taxes. Findings are available upon request through Employment and Social Development Canada’s Cost-Benefit Analysis report.

Quantified (non-$) and qualitative impacts

Positive impacts

Among the four million working-age Canadians with disabilities, 917 000 experience poverty — twice the rate of their peers without disabilities (23% vs. 12%, based on Canada’s official poverty line, the Market Basket Measure [the MBM]).footnote 10 This number includes all working-age persons with disabilities living in poverty, including those who may not qualify for the CDB (e.g. persons with mild and moderate disabilities). The MBM represents the cost of a basket that includes a nutritious diet, clothing and footwear, shelter, transportation, and other necessary goods and services (such as personal care items or household supplies). The cost of the basket is compared to disposable income for each family to determine low-income rates. The poverty rate increases with severity of disability, with 28% of persons with severe disabilities and 34% of persons with very severe disabilities living in poverty.footnote 10

In its first year (2025–26), the Benefit is estimated to be paid to 465 000 recipients with 745 000 family members. Of this number, 20 000 recipients with disabilities would be lifted out of poverty. As well, 10 000 of their family members will be lifted out of poverty.

By its tenth year (2034–35), an estimated 640 000 recipients with 1.02 million family members are expected to be in receipt of the Benefit. Of these, 25 000 recipients would be lifted out of poverty, along with 15 000 of their family members.

For persons with disabilities and their family members, whether lifted above the poverty line or not, their quality of life could improve with respect to

Small business lens

Analysis under the small business lens concluded that the proposed Regulations would not impact Canadian small businesses.

One-for-one rule

The one-for-one rule does not apply, as the proposed Regulations would not result in a change in the administrative burden imposed on businesses.

Regulatory cooperation and alignment

This proposal is not related to a work plan or commitment under a formal regulatory cooperation forum.

Given the potentially complex interactions between the Benefit and income-tested benefit programs administered by the provinces and territories, cooperation with other orders of government is important for achieving the Benefit’s objectives.

Provinces and territories were engaged to create a knowledge base and better understand potential interactions between the Benefit and other existing social assistance and disability income support programs and to seek to reduce the likelihood of any unintended consequences or negative interactions. Engagement began in summer 2021 with a meeting of Federal/Provincial/Territorial Ministers responsible for Social Services where the purpose of the Canada Disability Benefit and the expectation that it would supplement, not replace, existing provincial/territorial disability benefits was communicated. In addition to joint work by federal and provincial officials, the Minister met bilaterally with her provincial/territorial counterparts.

Multilateral and bilateral discussions with provinces and territories will continue in 2024 to address the interaction between the Benefit and provincial and territorial supports for persons with disabilities. The goal of these engagements is to ensure that individuals receive the full amount of the Benefit for which they are eligible.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

A gender-based analysis plus assessment was undertaken for the proposed Regulations. To be eligible for the Benefit, among other things, individuals must file an income tax and benefit return annually and have been deemed eligible for the Disability Tax Credit, targeting a subset of the working age disability population, namely those with severe and prolonged disabilities. These requirements may have greater impacts on some individuals than others.

Working-age persons with severe disabilities

The requirement to have been deemed eligible for a Disability Tax Credit in order to be eligible for the Benefit may cause challenges for some persons with disabilities who have not applied for one before as they will need to complete a form to apply for the Disability Tax Credit and may, in completing the form, be charged by medical professionals. Based on Canada Revenue Agency data (Disability Tax Credit Statistics website), just under 550 000 working-age Canadians with disabilities had been deemed eligible for a Disability Tax Credit in 2021,footnote 9 representing only 13% of the working-age population of persons with disabilities.

It is anticipated that the use of the Disability Tax Credit will result in an increase in individuals applying for the Credit — it is estimated that there could be just over 1 million working-age persons with disabilities deemed eligible for the Disability Tax Credit by 2028–29. As mentioned, Budget 2024 proposed funding to assist with the cost of obtaining the medical forms required to apply for the Disability Tax Credit.

Women with disabilities

Based on data for the Disability Tax Credit, working-age women with disabilities are more likely to be positively affected by the Benefit because of the financial support that it would provide. Persons deemed eligible for the Disability Tax Credit with incomes below $10,000 are more often women than men (57% vs. 43%), while those with incomes over $40,000 were more often men (58% vs. 42%), and those with incomes between $10,000 and $40,000 were evenly split between men and women.footnote 4

Household living arrangements

Household living arrangements have a significant impact on the likelihood of financial insecurity for working-age persons with disabilities. Those who live alone and single parents are much more likely to experience poverty than those living in families headed by a couple. In 2017, 36% of working-age single parents with milder disabilities and 43% of single parents with more severe disabilities were below the poverty line. Of those living alone with more severe disabilities, 63% were living in poverty. This compares to a poverty rate of 9% for working-age persons with disabilities who were spouses living together in a couple family.footnote 2 As a result, individuals who are living alone and single parents are more likely to benefit from the proposed Regulations because they experience higher rates of poverty.

Under the proposed Regulations, income is defined to include all sources of money that individuals and their spouses or partners must report on their income tax and benefit return to the Canada Revenue Agency each year, which results in a lower benefit amount for those in couples compared to individual income. This may reinforce a situation of financial dependency, where someone’s Benefit amount is reduced because of their partner’s income. To help address this issue, the proposed Regulations incorporate an income threshold and working income exemption that is higher for couples than individuals, which would mitigate the impact of spousal/partner income sources on the value of the Benefit.

Indigenous persons with disabilities

Indigenous persons with disabilities are more likely than non-Indigenous persons with disabilities to be positively affected by the Benefit. In the 2017 Indigenous Peoples Survey, 31% of Indigenous persons living off-reserve reported having a disability, with just under 33% living in poverty.footnote 11 Métis and First Nations were more likely to report a disability (1 in 3) while Inuit were least likely (1 in 5). First Nations persons with disabilities had a poverty rate of 40% and Métis persons with disabilities had a poverty rate of 25%.

However, Indigenous persons with disabilities may face disproportionate barriers in applying for a Disability Tax Credit. The large number of Indigenous persons (approximately 60% of First Nations people, 44% of Métis, 85% of Inuit) living outside of a large urban centrefootnote 12 could face additional barriers in applying for a Disability Tax Credit because of limited access to medical professionals to complete the application form. For example, First Nation adults with disabilities in Manitoba are less likely to be able to access the disability services they need on-reserve than off-reserve.footnote 13

In order to support access for individuals who face barriers applying for the Disability Tax Credit, the Canada Revenue Agency will continue to provide outreach and client support to improve accessibility of the Disability Tax Credit. The Canada Revenue Agency engages in outreach by offering information on benefits, credits, and taxes for specific communities, including information on the Disability Tax Credit. These services are offered through an outreach officer that networks with organizations such as non-profits, shelters, retirement homes, friendship centres, immigration associations and schools that provide services to housing-insecure individuals, Indigenous Peoples, modest-income individuals, newcomers to Canada, and persons with disabilities.

Additionally, as mentioned previously, Budget 2024 announced funding for a navigation support program delivered by community organizations with expertise in disability income support and which will help connect vulnerable persons with disabilities (including Indigenous persons with disabilities) to federal, provincial, territorial, and/or local programs that can assist them — including the Benefit.

Racialized populations

The intersection of disability and racialization has a significant impact on financial insecurity. Among working-age Canadians with disabilities, those who identified as a racialized population were more likely to be living in poverty than those who did not (24% vs. 20%).footnote 2 The poverty rate was highest among those who were Black (40%) and South Asian (27%). These statistics suggest that working-age persons with disabilities in these populations are more likely to benefit from the financial support that the proposed Regulations would provide.

2SLGBTQI+

More than one quarter (27%) of Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, and additional people (2SLGBTQI+) who identify as part of sexual and gender diverse communities in the 2SLGBTQI+ Action Plan Survey identified as persons living with a disability.footnote 14 While employment rates and average incomes are not known for 2SLGBTQI+ persons with disabilities, these are often lower for 2SLGBTQI+ communities, resulting in higher rates of poverty and financial precariousness.footnote 14 In 2018, 33% of 2SLGBTQI+ Canadians (versus 27% of non-2SLGBTQI+ Canadians) found it difficult or very difficult to meet their needs for transportation, housing, food, clothing, participation in some social activities and other necessary expenses.footnote 14

Given these statistics, it is likely that the proposed Regulations will have a positive impact on the 2SLGBTQI+ persons with disabilities due the income support that the Benefit would provide.

Homeless populations

Research shows that 13% of persons with disabilities are homeless compared to 6% of those without disabilities.footnote 15 Requiring that benefit amount calculations be based on data from the previous year’s income tax and benefit return and the use of the Disability Tax Credit may create challenges for this population to access the Benefit.

Ethnographic research conducted by the Canada Revenue Agency in 2017 about the tax filing habits of homeless populations found that participants had a range of tax filing habits, from those who file annually to those who do not file at all.footnote 16 To help address this issue and as stated above, the Canada Revenue Agency will continue to provide outreach and client support. It is also anticipated that the previously mentioned navigator support program will help connect vulnerable persons with disabilities (including homeless persons with disabilities) to federal, provincial, territorial, and/or local programs that can assist them — including the Benefit.

Implementation, compliance and enforcement, and service standards

Implementation

Coming into force

The proposed Regulations would come into force when they are registered, which is targeted for spring 2025.

The delivery and administration of the Benefit will be led by Service Canada. The Canada Revenue Agency is responsible for determining eligibility for the Disability Tax Credit and receiving income tax and benefit returns.

Individuals may apply for the Disability Tax Credit at any time during the year by completing the Disability Tax Credit Certificate form (Form T2201) and submitting it to the Canada Revenue Agency along with a form completed by the requisite medical practitioner.

Service Canada will provide the process for individuals to apply for the Benefit. This process will include multiple ways to apply, such as online through the Government of Canada website and in-person through paper forms available at Service Canada locations. Assistance will also be available in person at Service Canada locations and at Service Canada Call Centres. Service Canada is developing guidance documents that will outline the process for applying to the Benefit, which will be available in spring 2025.

To facilitate the delivery and administration of the Benefit, a data exchange mechanism will be put in place between Employment and Social Development Canada and the Canada Revenue Agency to share required information (e.g. age, residency, marital / common law status, income data, incarceration status), which is authorized by legislation. Subsection 241(4) of the Income Tax Act authorizes the sharing of taxpayer information collected under the Income Tax Act with an official for the purposes of the administration and enforcement of the CDB Act. All uses of the data gathered in this fashion will be governed by Part 4 of the Department of Employment and Social Development Act, the Income Tax Act, the Privacy Act and relevant Treasury Board of Canada Secretariat Policies and Directives (for example the Directive on Privacy Practices, the Directive on Privacy Impact Assessment, the Policy on Privacy Protection and the Directive on Social Insurance Number).

As the Benefit administrator, Service Canada will also modify the Benefit amount and fix administrative errors based on information that becomes available. Requests for reconsideration of Benefit eligibility, amount and monetary penalties will be the responsibility of Service Canada.

Service Canada will continue to undertake work to develop IT infrastructure and delivery administration, including preparing related information-sharing agreements with the Canada Revenue Agency. These systems will be in place by July 2025, when Benefit payments are anticipated to begin.

The Canada Revenue Agency will continue to provide outreach and client support through its existing channels, including their Indigenous Disability Support Section, to provide information to individuals about the Disability Tax Credit and the Benefit. Both Service Canada and the Canada Revenue Agency will undertake outreach and awareness activities, with emphasis on reaching marginalized groups.

Measuring impact

When looking at measuring the impact of the proposed Regulations and the Benefit overall, the disaggregated data will be used to monitor the Benefit’s financial impact among diverse groups of persons with disabilities using the Canada Survey on Disability, Statistics Canada quality of life measurements, and new indicators developed through a Data Strategy under the Disability Inclusion Action Plan.

Performance indicators for measuring outcomes will primarily rely on the post-censal Canadian Survey on Disability, the yearly Canadian Income Survey, and program administrative data.

The CDB Act requires a report to be tabled in Parliament by December 22, 2024, that sets out how the obligation to engage and collaborate with the disability community on the development of regulations was met. In addition, a further report to Parliament is required by June 22, 2025, on the progress made in the regulatory process.

Compliance and enforcement

The delivery of the Benefit will require compliance and enforcement activities to deter fraud, punish financial abuse, and prevent and mitigate overpayments. Offences and administrative monetary penalties will be overseen by Service Canada. Service Canada’s Integrity Services Branch will be responsible for developing the mechanisms and procedures for undertaking compliance activities, including investigations of identity and fraud.

The Canada Revenue Agency will continue to be responsible for processing and ensuring that income tax and benefit returns and applications for Disability Tax Credit are complete and accurate.

Service standards

Service Canada is taking steps to design service standards for the delivery and administration of the Benefit, which are expected to be in place before the expected launch of the Benefit in July 2025. Publicly available service standard metrics, such as what is available on GC Infobase, are usually developed one year after the benefit/program is launched to determine what is feasible based on the available baseline data. Service standard metrics could include, for example, how quickly Service Canada call centres respond to inquiries about the Benefit (e.g. the proportion of calls about the Benefit that are answered within 10 minutes).

Contact

Kerry Anderson
Director
Office for Disability Issues
Email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Canada Disability Benefit Regulations under subsection 11(1) of the Canada Disability Benefit Act footnote a and section 69footnote b of the Department of Employment and Social Development Act footnote c.

Interested persons may make representations concerning the proposed Regulations within 86 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Kerry Anderson, Acting Director, Policy Division, Office for Disability Issues, Employment and Social Development Canada, 105 De l’Hôtel-de-Ville Street, Gatineau, Quebec K1A 0J9 (email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca).

Ottawa, June 21, 2024

Wendy Nixon
Assistant Clerk of the Privy Council

Canada Disability Benefit Regulations

Definitions

Definitions

1 The following definitions apply in these Regulations.

Act
means the Canada Disability Benefit Act. (Loi)
applicant
means a person who has applied for a benefit or on whose behalf an application for a benefit has been made. (demandeur)
beneficiary
means a person to whom payment of a benefit has been approved or on whose behalf a benefit has become payable. (prestataire)
benefit
means a Canada disability benefit payable under the Act. (prestation)
Court,
for the purposes of sections 24 to 31, means the Tax Court of Canada. (Cour)
judge,
  • (a) for the purposes of sections 25 to 29, has the same meaning as in section 2 of the Tax Court of Canada Act; and
  • (b) for the purposes of section 34, means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court. (juge)
payment period
means the period beginning on July 1 of a calendar year and ending on June 30 of the following calendar year. (période de paiement)
release,
in relation to a person who has been incarcerated, means release from custody on earned remission, at the expiry of a sentence, or on parole or statutory release that has not been terminated or revoked. (libération)

Eligibility

Eligibility criteria

2 (1) A person is eligible to receive a benefit for any month after May 2025 in which they meet the following criteria:

Exception — 65 years of age

(2) Despite paragraph (1)(a), a person is eligible for a benefit for the month in which they turn 65 years of age.

Exception — first month of incarceration

(3) Despite paragraph (1)(d), a person is eligible for a benefit for the first month in which they are incarcerated.

Exception — incarcerated persons

(4) Despite subsections (1) and (3), a person who is incarcerated as a result of a sentence of imprisonment of two years or more that is to be served in a penitentiary by virtue of any Act of Parliament is not eligible for a benefit:

Exception — return of income

(5) Despite paragraph (1)(e), a person is not required to file a return of income for any taxation year that ends before they attain the age of 18 years and six months.

Evidence of age and identity

3 The Minister may determine the age and identity of an applicant on the basis of any information made available to the Minister by the Canada Employment Insurance Commission under subsection 28.2(5) of the Department of Employment and Social Development Act.

Application for Benefits

Form of application

4 (1) An application for benefits must be made in the form and manner specified by the Minister.

Application made

(2) An application is deemed to have been made only when it is received by the Minister.

Timing

(3) An application may be made before or after a person is eligible for a benefit.

New application

(4) If, for any given month, a beneficiary becomes ineligible, their benefit is deemed to have ceased and they must make a new application to resume benefits.

Approval date

5 (1) Subject to subsection (2), an application is deemed to be approved by the Minister on the earliest day on which an applicant is eligible for a benefit in accordance with the Act and these Regulations and for which a benefit has not already been paid.

Time limit

(2) The earliest day on which an application can be deemed to have been approved is the day that is

Amount of Benefit

Calculation of monthly amount

6 (1) The amount of the benefit that is payable to a beneficiary for any month for which they are eligible to receive a benefit in a payment period is the amount — rounded to the nearest cent or, if the amount is equidistant from two cents, to the higher of them — determined by the formula

(($2,400 × A) − B) ÷ 12
where
A
is the indexing factor for the payment period, calculated in accordance with subsection (5); and
B
is the reduction based on income, calculated in accordance with whichever of subsections (2) to (4) applies to the beneficiary on the last day of the month that precedes the applicable month.

Reduction — single beneficiary

(2) If the beneficiary does not have a cohabiting spouse or common-law partner, the reduction based on income is the greater of zero and the amount determined by the formula

20% × (C + D − ($23,000 × A))
where
C
is the amount, if any, by which the beneficiary’s working income for the last taxation year that ended before the beginning of the payment period exceeds the product of $10,000 and the indexing factor for the payment period, calculated in accordance with subsection (5);
D
is the beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period; and
A
is the indexing factor for the payment period, calculated in accordance with subsection (5).

Reduction — non-beneficiary spouse or partner

(3) If the beneficiary has a cohabiting spouse or common-law partner who is not a beneficiary, the reduction based on income is the greater of zero and the amount determined by the formula

20% × (E + D − ($32,500 × A))
where
E
is the amount, if any, by which the sum of the beneficiary’s working income for the last taxation year that ended before the beginning of the payment period and that of their spouse or partner exceeds the product of $14,000 and the indexing factor for the payment period, calculated in accordance with subsection (5);
D
is the beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period; and
A
is the indexing factor for the payment period, calculated in accordance with subsection (5).

Reduction — beneficiary spouse or partner

(4) If the beneficiary has a cohabiting spouse or common-law partner who is also a beneficiary, the reduction based on income is the greater of zero and the amount determined by the formula

10% × (E + D − ($32,500 × A))
where
E
is the amount, if any, by which the sum of the beneficiary’s working income for the last taxation year that ended before the beginning of the payment period and that of their spouse or partner exceeds the product of $14,000 and the indexing factor for the payment period, calculated in accordance with subsection (5);
D
is the beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period; and
A
is the indexing factor for the payment period, calculated in accordance with subsection (5).

Indexing factor

(5) The indexing factor for a payment period is the amount determined by the formula

CPImax ÷ CPI2024
where
CPImax
is the highest Consumer Price Index for any calendar year beginning with 2024 and ending with the last calendar year that ended before the beginning of the payment period; and
CPI2024
is the Consumer Price Index for 2024.

Consumer Price Index

(6) For the purpose of subsection (5), a reference to the Consumer Price Index for a calendar year is a reference to the all-items Consumer Price Index for Canada, annual average, not seasonally adjusted, for that year, as published by Statistics Canada under the authority of the Statistics Act.

Working income — under 18 years and six months

(7) For the purpose of subsections (2) to (4), a person’s working income for any taxation year that ends before they attain the age of 18 years and six months is deemed to be zero.

Definitions

(8) The following definitions apply in this section.

adjusted income
means the portion of a beneficiary’s adjusted income, as defined in section 122.6 of the Income Tax Act, that is not
  • (a) working income;
  • (b) a benefit received under the Act; or
  • (c) income of a person who had not attained the age of 18 years and six months by the end of the taxation year. (revenu modifié)
cohabiting spouse or common-law partner
has the same meaning as in section 122.6 of the Income Tax Act. (époux ou conjoint de fait visé)
working income
has the same meaning as in subsection 122.7(1) of the Income Tax Act. (revenu de travail)

Deeming — cohabiting spouse or common-law partner

(9) For the purposes of the definition adjusted income in subsection (8), a person who was not the cohabiting spouse or common-law partner of the beneficiary on the last day of the month preceding the applicable month is deemed not to have been the beneficiary’s cohabiting spouse or common-law partner at the end of the taxation year, and a person who was the beneficiary’s cohabiting spouse or common-law partner on the last day of the month preceding the applicable month is deemed to have been the beneficiary’s cohabiting spouse or common-law partner at the end of the taxation year.

Payment of Benefits

When benefit begins

7 A beneficiary’s first benefit is payable the month following the month in which their application is approved by the Minister.

Monthly payments

8 (1) Subject to subsection (2), a benefit is payable each month during the payment period.

Payment of twenty dollars or less

(2) If the monthly benefit that is payable to a beneficiary is twenty dollars or less, their entire benefit for a payment period, being an amount equal to their monthly benefit multiplied by the number of months remaining in the payment period, is payable as a lump sum on the day on which the first monthly benefit would have been paid.

First payment

9 The first payment to a beneficiary under section 7 must be an amount equal to the sum of the monthly benefits that are payable to the beneficiary for the period beginning with the month following the month in which their application is approved under section 5 and ending with the month in which the first payment is made.

Incarcerated Persons

When benefit begins

10 (1) Despite section 7, if an application made by a person referred to in paragraph 2(1)(d) is approved under section 5 for the month in which they are released, that beneficiary’s first benefit is payable the month in which they are released.

Notice of release date

(2) The beneficiary must notify the Minister in writing of their release date.

Notice of release date

11 (1) Despite subsection 4(4), a beneficiary who becomes ineligible under paragraph 2(1)(d) and who wishes to resume benefits on release may, in lieu of making a new application, notify the Minister, in writing, of their release date.

Resumption of benefits

(2) If, on receipt of the notice, the Minister is satisfied that the beneficiary meets the eligibility criteria set out in section 2, the beneficiary’s benefits must resume and are payable beginning with the month in which they are released.

First payment

12 The first payment under subsection 10(1) or 11(2) must be an amount equal to the sum of the monthly benefits that are payable to the beneficiary for the period beginning with the month in which they are released and ending with the month in which the first payment is made.

Suspension of Benefits

Potential ineligibility

13 (1) If the Minister has reasonable grounds to believe that a beneficiary does not meet the eligibility criteria set out in section 2 or that an inquiry with respect to their eligibility is necessary, the Minister may suspend payment of the benefit to the beneficiary until the Minister is satisfied that they are eligible.

Reasonable time

(2) The Minister must review a beneficiary’s eligibility within a reasonable time.

Resumption of benefits

(3) If a suspension is lifted, the Minister must resume payment of the benefit and make a lump sum payment that is equal to the sum of the monthly benefits to which the beneficiary was entitled to receive during the period of the suspension.

Request to suspend benefits

14 (1) A beneficiary may request in writing that the Minister suspend their benefit.

When benefits are suspended

(2) The payment of a benefit is suspended on the later of

Request for resumption

(3) The beneficiary may request in writing that the Minister resume payment of their benefit.

Eligibility

(4) On receipt of a request, the Minister must resume payment of the benefit if the Minister is satisfied that the person meets the eligibility criteria set out in section 2.

Resumption of benefits

(5) The Minister must resume payment of the benefit on the later of

Death of a Beneficiary

Notice to Minister

15 If a beneficiary dies, their estate or succession, the executor or administrator of the estate, the liquidator of the succession or the beneficiary’s heirs must, as soon as feasible, notify the Minister of the beneficiary’s death.

Payment to estate or succession

16 (1) If a beneficiary dies, the beneficiary’s estate or succession or the beneficiary’s heirs are eligible to receive a benefit payment for the month in which the beneficiary died if the beneficiary did not receive a benefit payment for that month.

Amount payable to deceased beneficiary

(2) Any amount owing as a benefit on the death of the beneficiary, or any benefit paid to the beneficiary or on their behalf in accordance with the Act and these Regulations but returned to the Minister after the death of a beneficiary, must be paid to the executor or administrator of the beneficiary’s estate, the liquidator of the beneficiary’s succession or the beneficiary’s heirs. If there are no heirs, this amount must be paid to a person or agency designated by the Minister.

Presumption of death

17 (1) If a beneficiary has disappeared under circumstances that the Minister concludes raise, beyond a reasonable doubt, a presumption that the beneficiary is dead, the Minister may determine the date on which, for the purposes of the Act and these Regulations, that beneficiary’s death is presumed to have occurred, and the beneficiary will be deemed for all purposes of the Act and these Regulations to have died on that date.

Change of date

(2) If, after having determined the date of the beneficiary’s death, the Minister is satisfied on the basis of new information or evidence that the date of death is different, the Minister may determine a different date for the purposes of the Act and these Regulations and the Minister must, within a reasonable time, pay any benefit that would have been payable if the initial determination had not been made.

Beneficiary is alive

(3) If, after having determined the date of the beneficiary’s death under this section, the Minister is satisfied on the basis of new information or evidence that the beneficiary is alive, the Minister must, within a reasonable time, pay any benefit that would have been payable to the beneficiary had that determination not been made.

Death certificates

(4) For the purposes of this section, the Minister is not bound by the issuance or revocation of a death certificate by any other authority.

Incapacity

Representative

18 If a person is incapable of managing their own affairs, their representative may act on their behalf, including by making any application, statement, notice, request for reconsideration or appeal referred to in the Act or these Regulations.

Payments to beneficiary’s representative

19 (1) If a beneficiary is incapable of managing their own affairs, the Minister may direct that the benefit be paid on their behalf

Conditions

(2) To receive a benefit on behalf of a beneficiary, a person or agency referred to in subsection (1) must enter into an agreement with the Minister respecting the benefit and comply with the terms of that agreement.

Amendment, Rescission or Reconsideration of Decisions

Amendment or rescission

20 The Minister may, on the basis of new facts, amend or rescind any decision made by the Minister.

Reconsideration of benefit

21 (1) Subject to section 22, a person who is dissatisfied with a decision made by the Minister under the Act or these Regulations that no benefit be paid to them, or respecting the amount of a benefit that may be paid to them, may, within 180 days after the day on which the person is notified in writing of the decision, make a request to the Minister for a reconsideration of that decision.

Reconsideration of penalty

(2) Subject to section 22, a person against whom a penalty has been imposed by the Minister under section 37 and who is dissatisfied with that decision or with the amount of the penalty may, within 180 days after the day on which the person is notified in writing of the decision, make a request to the Minister for a reconsideration of that decision.

Contents of request

(3) A request for reconsideration must be made in writing to the Minister and contain the following information:

Decision of Minister

(4) The Minister must, within a reasonable time, reconsider the decision referred to in the request and may confirm, amend or rescind it, and may approve payment of a benefit, determine the amount of a benefit or determine that no benefit is payable. In all cases, the Minister must notify in writing the person who made the request of the Minister’s decision and the reasons for it.

Request for extension

22 (1) A person may request that the Minister extend the 180-day period referred to in subsections 21(1) and (2) not later than 185 days after the end of that period.

Making of request

(2) A request for an extension of time must be made in the form and manner specified by the Minister.

Situations

(3) The Minister must allow an extension of time if the Minister is satisfied that at least one of the following situations has occurred and has significantly impacted the ability of the person referred to in subsection (1) to respect the time period:

Decision

(4) The Minister must consider a request for an extension of time within a reasonable time and must notify the person who made the request in writing of the Minister’s decision and the reason for it.

Appeals

Social Security Tribunal

23 (1) For the purposes of section 10.1 of the Act, the body to which a person may appeal is the Social Security Tribunal established under section 44 of the Department of Employment and Social Development Act.

Paragraphs 10.1(a) and (b) of Act

(2) A person must follow the procedure set out in section 21 of these Regulations in respect of any requests for reconsideration of decisions referred to in paragraphs 10.1(a) and (b) of the Act. Only a decision of the Minister made under subsection 21(4) of these Regulations in respect of these decisions may be appealed to the Social Security Tribunal.

Paragraph 10.1(c) of Act

(3) For the purposes of paragraph 10.1(c) of the Act, a person may appeal to the Social Security Tribunal in respect of any decision of the Minister made under section 21 or 22 of these Regulations.

Reference to Court

24 If an appeal brought under section 10.1 of the Act includes, as a ground of appeal, a claim or a submission that a decision or determination made by the Minister as to income under the Act was incorrectly made, the Social Security Tribunal must

Other persons affected

25 (1) If an appeal is made in relation to a decision or determination as to income under the Act or these Regulations and the Minister is of the opinion that a person other than the appellant may be directly affected by the decision of the Court, the Minister must so notify the Social Security Tribunal.

Person added

(2) The Social Security Tribunal must notify the Registrar of the Court and the Registrar must add that person as a party to the appeal.

Notice — receipt of documents

(3) The Registrar of the Court, on receipt of the documents transmitted by the Social Security Tribunal under paragraph 24(b), must notify the Chief Justice of the Court, the Social Security Tribunal, the Minister and any person added as a party to the appeal of that receipt.

Appointment of judge

(4) When the Chief Justice of the Court is notified under subsection (3), the Chief Justice must appoint a judge of the Court to hear the reference.

Time and place of reference

26 (1) The Registrar of the Court, in consultation with the judge of the Court appointed to hear the reference, must set the date, time and place for the hearing of the reference.

Where reference is held

(2) The hearing of a reference must be held in the city, town or village in which, or nearest to which, the appellant is ordinarily resident unless the appellant consents in writing to the hearing being held, in whole or in part, at some other place or by audioconference or videoconference or a combination of both.

Notice

(3) The Registrar of the Court must, by registered mail, notify the appellant, the Social Security Tribunal, the Minister and any person added as a party to the appeal of the date, place and time set for the hearing of the reference.

Informal procedure

27 (1) Proceedings before the Court must be informal and conducted in a summary manner.

Determination of procedure

(2) The judge appointed to hear the reference must, subject to the right of all parties or their representatives to be heard, determine the procedure to be followed at the hearing of the reference.

Written submissions

28 The judge appointed to hear the reference may, with the consent of the appellant, require that written submissions be filed by the appellant, the Minister and any person added as a party to the appeal in addition to or in lieu of an oral hearing.

Decision

29 (1) The judge appointed to hear the reference must advise the Registrar of the Court of the judge’s decision.

Certified copy of decision

(2) After being advised of the decision, the Registrar of the Court must forward a certified copy of the decision to the appellant, the Social Security Tribunal, the Minister and any person added as a party to the appeal.

Costs and fees

30 No costs may be awarded on the disposition of a reference and no fees may be charged to the appellant by the Court.

Other grounds of appeal

31 If the appellant sets out both a ground of appeal that has been referred to the Court under subsection 66(2) of the Department of Employment and Social Development Act and a ground of appeal that has not been referred to the Court under that subsection, the Social Security Tribunal, on receipt of a certified copy of the decision of the Court, must proceed in accordance with the Social Security Tribunal Rules of Procedure.

Mailing address

32 All notices, requests and other documents must be addressed to the person to whom they are required to be sent, forwarded or mailed at their last known address.

Administrative Errors

Denial of benefit due to administrative error

33 If the Minister is satisfied that, as a result of an administrative error in the administration of the Act or these Regulations, any person has been denied a benefit, or a portion of a benefit, to which that person would have been entitled, the Minister must take any remedial action that the Minister considers appropriate to place the person in the position that they would be in had the administrative error not been made.

Compliance and Enforcement

Inspections

34 (1) The Minister may, for any purpose relating to the administration or enforcement of the Act or these Regulations, examine any document that relates or may relate to the entitlement of a person to a benefit or the amount of a benefit.

Requirement to provide

(2) Despite any other provision of the Act or these Regulations, the Minister may, subject to subsection (3), by notice served personally or by confirmed delivery service, require that any person provide any information or document for any purpose relating to the administration or enforcement of the Act or these Regulations within the reasonable time specified in the notice.

Other persons

(3) The Minister must obtain the authorization of a judge under subsection (4) before requiring that a person — other than an applicant, a beneficiary or the representative of an applicant or beneficiary who is incapable of managing their own affairs — provide information or documents under subsection (2).

Judicial authorization

(4) On an ex parte application by the Minister, a judge may, subject to the conditions that the judge considers appropriate, authorize the Minister to require information or documents under subsection (2) from a person referred to in subsection (3) if the judge is satisfied by information on oath that the information or documents are required to verify compliance by the person with a duty or obligation under the Act or these Regulations.

Service of authorization

(5) An authorization granted under subsection (4) must be served together with the notice referred to in subsection (2).

Review of authorization

(6) A person on whom an authorization and a notice are served under subsection (5) may, not later than 15 days after the day on which the authorization and notice are served, apply to the judge who granted the authorization under subsection (4) or, if that judge is unable to act, to another judge of the same court for a review of the authorization.

Powers on review

(7) On hearing an application under subsection (6), a judge may cancel the authorization previously granted if the judge is not then satisfied that the conditions referred to in subsection (4) have been met, and the judge may confirm or vary the authorization if the judge is satisfied that those conditions have been met.

Copies as evidence

35 When a document is examined or provided under the Act or these Regulations, the person by whom it is examined or to whom it is provided may make or cause to be made one or more certified copies of it and any such copy is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

Obligation to appear

36 The Minister may, for any purpose related to verifying compliance or preventing non-compliance with the Act or these Regulations, require an applicant, a beneficiary or the representative of an applicant or beneficiary who is incapable of managing their own affairs to be at a suitable place — or to be available by audioconference or videoconference or in any other suitable manner — at a suitable time in order to provide any information or document related to their application that the Minister may require.

Administrative Monetary Penalties

Violations

37 (1) A person commits a violation if they

Penalty

(2) Subject to subsection (7), the Minister may impose a penalty on a person if the Minister is of the opinion that the person has committed a violation.

Amount of penalty

(3) The penalty that the Minister may issue is

Presumption — first violation

(4) For the purposes of subsection (3), if no penalty was imposed on a person under this section in the 10 years preceding the day on which a violation occurred, the violation is deemed to be a first violation.

For greater certainty

(5) For greater certainty, no penalty may be imposed on a person if they mistakenly believe that a representation is true or that they, or the person on whose behalf they made an application for a benefit, were eligible to receive the benefit, as the case may be.

Limitation

(6) A penalty must not be imposed on a person in respect of an act referred to in subsection (1) if

Rescission of penalty

(7) The Minister may rescind a penalty imposed under subsection (2)

Offences

Offences

38 (1) A person is guilty of an offence punishable on summary conviction if they

Saving

(2) No proceeding may be commenced under this section or the Criminal Code for an act if a penalty for that act has been imposed under section 37.

Debts and Overpayments

Return of benefit

39 (1) A person or agency that has received a benefit payment to which the person or agency is not entitled, or that has received a benefit payment in excess of the amount of the benefit to which the person or agency is entitled, must return the amount of the erroneous payment or the overpayment, as the case may be, as soon as feasible.

Debt due to His Majesty

(2) The amount of the erroneous payment or overpayment constitutes a debt due to His Majesty in right of Canada, as of the day on which it was paid, that may be recovered by the Minister.

Payment in instalments

(3) A debt recoverable from a person under this section may be paid as a single payment or, if the Minister agrees, in instalments in any amount that does not cause undue hardship to the person.

No interest

(4) No interest is payable on any amount owing to His Majesty in right of Canada under the Act or these Regulations that results from an erroneous payment or overpayment unless the payment was made as a result of a violation for which a penalty was imposed under section 37 of these Regulations or as a result of an offence under subsection 38(1) of these Regulations for which a fine or a term of imprisonment was imposed under the Criminal Code.

Recovery of penalties

40 A penalty imposed under section 37 constitutes a debt due to His Majesty in right of Canada, as of the day on which it was imposed, that may be recovered by the Minister.

Limitation period

41 (1) Subject to subsections (2) and (3), no action or proceedings may be taken to recover money owing under the Act or these Regulations after the end of the six-year limitation period that begins on the day on which the money becomes due and payable.

Limitation period suspended

(2) The running of a limitation period is suspended during any period in which

Enforcement proceedings

(3) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Certificates

42 (1) All or part of the debt that has not been recovered may be certified by the Minister

Registration of certificate

(2) On production to the Federal Court, the certificate must be registered in the Court. When it is registered, it has the same force and effect, and all proceedings may be taken, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate.

Judgment

(3) A certificate registered under subsection (2) may also be registered in the superior court of a province as if it were a document evidencing a judgment of that court.

Costs

(4) All reasonable costs and charges for the registration of the certificate are recoverable in the same way as if they had been certified and the certificate registered under this section.

Charge on land

(5) A document issued by the Federal Court or by a superior court of a province evidencing a certificate in respect of a debtor registered under subsection (2) or (3) may be recorded for the purpose of creating security, or a charge, lien or priority on, or a binding interest in, property in a province, or any interest in, or for civil law any right in, such property held by the debtor, in the same manner as a document evidencing a judgment of the superior court of the province against a person for a debt owing by the person may be recorded in accordance with the law of the province to create security, or a charge, lien or priority on, or a binding interest in, property in a province, or any interest in, or for civil law any right in, such property held by the person.

Garnishment

(6) If the Minister knows or suspects that a person is or is about to become indebted or liable to make a payment to a person liable to make a payment to His Majesty in right of Canada under the Act or these Regulations, the Minister may, by notice served personally or by confirmed delivery service, require the first person to pay the money otherwise payable to the second person in whole or in part to the Receiver General on account of the second person’s liability.

Debt due to His Majesty

(7) An amount not paid as required by a notice under subsection (6) is a debt due to His Majesty in right of Canada.

Consequential Amendment to the Social Security Tribunal Regulations, 2022 – Department of Employment and Social Development Act

43 The portion of subsection 1(1) of the Social Security Tribunal Regulations, 2022 footnote 17 before paragraph (a) is replaced by the following:

Filing of notice

1 (1) A party who wants to challenge the constitutional validity, applicability or operability of a provision of the Canada Pension Plan, the Old Age Security Act, the Employment Insurance Act, Part 5 of the Department of Employment and Social Development Act, the Canada Disability Benefit Act or the rules or regulations made under any of those Acts must file a notice with the Tribunal that sets out

Coming into Force

Registration

44 These Regulations come into force on the day on which they are registered.

Terms of use and Privacy notice

Terms of use

It is your responsibility to ensure that the comments you provide do not:

  • contain personal information
  • contain protected or classified information of the Government of Canada
  • express or incite discrimination on the basis of race, sex, religion, sexual orientation or against any other group protected under the Canadian Human Rights Act or the Canadian Charter of Rights and Freedoms
  • contain hateful, defamatory, or obscene language
  • contain threatening, violent, intimidating or harassing language
  • contain language contrary to any federal, provincial or territorial laws of Canada
  • constitute impersonation, advertising or spam
  • encourage or incite any criminal activity
  • contain external links
  • contain a language other than English or French
  • otherwise violate this notice

The federal institution managing the proposed regulatory change retains the right to review and remove personal information, hate speech, or other information deemed inappropriate for public posting as listed above.

Confidential Business Information should only be posted in the specific Confidential Business Information text box. In general, Confidential Business Information includes information that (i) is not publicly available, (ii) is treated in a confidential manner by the person to whose business the information relates, and (iii) has actual or potential economic value to the person or their competitors because it is not publicly available and whose disclosure would result in financial loss to the person or a material gain to their competitors. Comments that you provide in the Confidential Business Information section that satisfy this description will not be made publicly available. The federal institution managing the proposed regulatory change retains the right to post the comment publicly if it is not deemed to be Confidential Business Information.

Your comments will be posted on the Canada Gazette website for public review. However, you have the right to submit your comments anonymously. If you choose to remain anonymous, your comments will be made public and attributed to an anonymous individual. No other information about you will be made publicly available.

Comments will remain posted on the Canada Gazette website for at least 10 years.

Please note that communication by email is not secure, if the attachment you wish to send contains sensitive information, please contact the departmental email to discuss ways in which you can transmit sensitive information.

Privacy notice

The information you provide is collected under the authority of the Financial Administration Act, the Department of Public Works and Government Services Act, the Canada–United States–Mexico Agreement Implementation Act,and applicable regulators’ enabling statutes for the purpose of collecting comments related to the proposed regulatory changes. Your comments and documents are collected for the purpose of increasing transparency in the regulatory process and making Government more accessible to Canadians.

Personal information submitted is collected, used, disclosed, retained, and protected from unauthorized persons and/or agencies pursuant to the provisions of the Privacy Act and the Privacy Regulations. Individual names that are submitted will not be posted online but will be kept for contact if needed. The names of organizations that submit comments will be posted online.

Submitted information, including personal information, will be accessible to Public Services and Procurement Canada, who is responsible for the Canada Gazette webpage, and the federal institution managing the proposed regulatory change.

You have the right of access to and correction of your personal information. To seek access or correction of your personal information, contact the Access to Information and Privacy (ATIP) Office of the federal institution managing the proposed regulatory change.

You have the right to file a complaint to the Privacy Commission of Canada regarding any federal institution’s handling of your personal information.

The personal information provided is included in Personal Information Bank PSU 938 Outreach Activities. Individuals requesting access to their personal information under the Privacy Act should submit their request to the appropriate regulator with sufficient information for that federal institution to retrieve their personal information. For individuals who choose to submit comments anonymously, requests for their information may not be reasonably retrievable by the government institution.