Canada Disability Benefit Regulations: SOR/2025-35

Canada Gazette, Part II, Volume 159, Number 6

Registration
SOR/2025-35 February 26, 2025

CANADA DISABILITY BENEFIT ACT
DEPARTMENT OF EMPLOYMENT AND SOCIAL DEVELOPMENT ACT

P.C. 2025-160 February 25, 2025

Whereas, under subsection 11(1.1) of the Canada Disability Benefit Act footnote a, the Governor in Council has taken into consideration the elements referred to in that subsection in making the annexed Regulations;

And whereas, under section 11.1 of that Act, the Minister of Employment and Social Development has provided persons with disabilities from a range of backgrounds with meaningful and barrier-free opportunities to collaborate in the development and design of the annexed Regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development and the Minister of State (Diversity, Inclusion and Persons with Disabilities), makes the annexed Canada Disability Benefit Regulations under

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)
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)
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 — incarceration

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

Condition — cohabiting spouse or common-law partner

(4) Despite subsections (1) to (3), a person is eligible for a benefit for any month in a payment period only if their cohabiting spouse or common-law partner has filed a return of income under the Income Tax Act for the last taxation year that ended before the beginning of that payment period.

Waiver

(5) The Minister may waive the condition set out in subsection (4) if the Minister is satisfied that the condition is unreasonable or impracticable in the circumstances, including if

Exception — suspension of payments

(6) Despite subsections (1) to (3), a person is not eligible for a benefit for any month during which payment of a benefit has been suspended under section 11.

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 becomes eligible for a benefit.

New application

(4) If, for any given month, a beneficiary becomes ineligible, their benefit ceases as of that month 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 becomes 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 24 months before the day on which the application is made.

Amount of Benefit

Calculation of monthly benefit

6 (1) 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 beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period, without taking into account the income of the person who was their cohabiting spouse or common-law partner, if any, at the end of that year;
D
is the lesser of
  • (a) the beneficiary’s working income for the last taxation year that ended before the beginning of the payment period, and
  • (b) the product of $10,000 and the indexing factor for the payment period, calculated in accordance with subsection (5); 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 − F − ($32,500 × A))
where
E
is the beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period or, if their current cohabiting spouse or common-law partner was not their cohabiting spouse or common-law partner at the end of that year, the amount that would have been the beneficiary’s adjusted income if their current cohabiting spouse or common-law partner had been their cohabiting spouse or common-law partner at the end of that year;
F
is the lesser of
  • (a) 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 cohabiting spouse or common-law partner, and
  • (b) the product of $14,000 and the indexing factor for the payment period, calculated in accordance with subsection (5); 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 − F − ($32,500 × A))
where
E
is the beneficiary’s adjusted income for the last taxation year that ended before the beginning of the payment period or, if their current cohabiting spouse or common-law partner was not their cohabiting spouse or common-law partner at the end of that year, the amount that would have been the beneficiary’s adjusted income if their current cohabiting spouse or common-law partner had been their cohabiting spouse or common-law partner at the end of that year;
F
is the lesser of
  • (a) 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 cohabiting spouse or common-law partner, and
  • (b) the product of $14,000 and the indexing factor for the payment period, calculated in accordance with subsection (5); 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.

Definitions

(7) 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 benefit. (revenu modifié)
working income,
of an individual for a given taxation year, means the total of
  • (a) the amounts referred to in paragraphs (a) and (b) of the definition working income in subsection 122.7(1) of the Income Tax Act, and
  • (b) the total of the following types of business income:
    • (i) net farming income,
    • (ii) net fishing income,
    • (iii) net professional income,
    • (iv) net commission income, and
    • (v) other net business income. (revenu de travail)

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.

Suspension of Payments

Potential ineligibility

10 (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 payments

(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 for suspension

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

Suspension of payments

(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 within 24 months after the date of suspension. If no request to resume payment is received within that period, their benefit is deemed to have ceased and they must make a new application to resume benefits.

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 payments

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

Death of a Beneficiary

Notice to Minister

12 If a beneficiary dies, 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

13 (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 beneficiary’s estate or 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

14 (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.

Representatives

Representative

15 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

16 If a beneficiary is incapable of managing their own affairs, the Minister may direct that the benefit be paid on their behalf to their representative, if the representative is authorized by or under a law of Canada or of a province to manage the beneficiary’s affairs.

Amendment, Rescission or Reconsideration of Decisions

Amendment or rescission

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

Reconsideration of benefit

18 (1) Subject to section 19, a person who is dissatisfied with a decision made under the Act or these Regulations that no benefit be paid to them, or respecting the amount of a benefit that the person has received or will receive, 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 19, a person against whom a penalty has been imposed by the Minister under section 35 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:

Minister’s decision

(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

19 (1) A person may request that the Minister extend the 180-day period referred to in subsections 18(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:

Minister’s decision

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

Appeals

Social Security Tribunal

20 (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 18 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 18(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 subsection 18(4) or 19(4) of these Regulations.

Reference to Court

21 (1) 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

Definition of Court

(2) For the purposes of this section and sections 23 to 29, Court means the Tax Court of Canada.

Definition of judge

22 For the purposes of sections 23 to 27, judge has the same meaning as in section 2 of the Tax Court of Canada Act.

Other persons affected

23 (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 21(1)(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 to hear the reference.

Time and place of reference

24 (1) The Registrar of the Court, in consultation with the judge 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

25 (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

26 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

27 (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

28 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

29 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

30 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

31 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

32 (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 information or documents

(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.

Definition of judge

(8) For the purposes of this section, judge means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court.

Copies as evidence

33 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

34 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

35 (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, based on documents or information collected or obtained by the Minister, 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

36 (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 35.

Debts and Overpayments

Return of benefit

37 (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 35 or as a result of an offence under subsection 36(1) for which a fine or a term of imprisonment was imposed under the Criminal Code.

Recovery of penalties

38 A penalty imposed under section 35 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 or prescription

39 (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 or prescription that begins on the day on which the money becomes due and payable.

Limitation period or prescription suspended

(2) The running of a limitation period or prescription 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

40 (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

(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

41 The portion of subsection 1(1) of the Social Security Tribunal Regulations, 2022 footnote 1 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

May 15, 2025

42 These Regulations come into force on May 15, 2025.

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 reducing 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. The new Canada Disability Benefit Regulations (the Regulations) introduce a new income-tested benefit — the Canada Disability Benefit (the Benefit) — enabling annual financial support to eligible persons with disabilities. The Regulations establish the parameters for the Benefit, such as eligibility criteria, the Benefit amount and how it is calculated.

Description: As set out in the Regulations, the Benefit provides 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 are calculated and made and the role of representatives of a person that needs assistance, 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. The Regulations also include an amendment to the Social Security Tribunal Regulations, 2022, relating to appeals under the Canada Disability Benefit Act. 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. These Regulations set out key details that enable the Government of Canada to administer the Benefit and begin making payments. Over 10 years, beginning in fiscal year 2025–2026, the estimated costs of this proposal are $479.7 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. 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 2The 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 long-standing economic and social barriers faced by persons with disabilities. The Canada Disability Benefit Act (the CDB Act) establishes the framework for this new income-tested annual benefit for eligible working-age persons with disabilities. For the Benefit to be distributed to Canadians, the details have been set out in the Canada Disability Benefit Regulations (the Regulations).

The Regulations set the following conditions to allow the Benefit to be administered: eligibility criteria, Benefit amount and how it is calculated, how payments are made, and the role of representatives for persons who need assistance 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 Regulations also provide the authority to design an application process, which is being 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, and came into force on 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 setting out how it met the obligation to engage and collaborate with the disability community on the development of the Regulations, by December 22, 2024; the second presenting progress made with respect to the regulatory process, by June 2025. The first report, the Canada Disability Benefit report to the House of Commons: engagement with the disability community, was tabled in Parliament on December 12, 2024.

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 in 2023 and 2024, stakeholders 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 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 the investment made in Budget 2024 and taking into account stakeholder input on the Benefit’s design, the Regulations establish Benefit details such as eligibility criteria, the Benefit amount and how it is calculated, how payments are made, and the application process. Among other eligibility criteria such as age and citizenship, the Disability Tax Credit is the basis for determining disability eligibility for the Benefit. Using the Disability Tax Credit to determine disability under the 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 eligibility for the Disability Tax Credit can potentially help them in a number of ways, even if they do not have taxable income. For example, being eligible for the Disability Tax Credit can give applicants access to other federal, provincial, or territorial programs and benefits, such as the Registered Disability Savings Plan and the Canada Workers Benefit disability supplement.

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 will be administered by Service Canada.

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

Amendments to the Department of Employment and Social Development Act, the Tax Court of Canada Act and the Federal Courts Act relating to appeals under the CDB Act were made through the Budget Implementation Act, 2024, No. 1. These amendments received royal assent and came into force on June 20, 2024. They amended the Tax Court of Canada Act and the Department of Employment and Social Development Act to, among other things, provide the Social Security Tribunal (the Tribunal) with jurisdiction to hear appeals of decisions made under the CDB Act and to require that matters related to income raised in those appeals be referred to the Tax Court of Canada. They also amended the Federal Courts Act to provide that the Federal Court has jurisdiction to hear applications for judicial review of decisions of the Tribunal on the extension of time to make a request for review or reconsideration under the CDB Act.

The Government of Canada proposed, in the 2024 Fall Economic Statement tabled in Parliament on December 16, 2024, that the Benefit not be included in income as defined in the Income Tax Act. Since the proposal has not yet been enacted in Parliament, the Regulations contain a provision to exclude payments of the Benefit from the definition of income.

Objective

The objective of the Regulations is to enable payment of the Benefit as soon as possible especially while 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

Summary of changes following prepublication in the Canada Gazette, Part I

More information is available regarding these changes to the Regulations, including discussion of the terms “adjusted income”, “working income” and “cohabiting spouse or common-law partner”, in the sections below.

After the consultation period in the Canada Gazette, Part I, the following changes were made to the Regulations:

In response to stakeholder feedback, scenarios have also been added to this document below to illustrate how individuals will receive different Benefit amounts based on their circumstances.

Outline of the Regulations

Note: Service Canada will act for the Minister in administering the Benefit. For ease of understanding, where the authority is provided to the Minister in the Regulations, reference is made to the Minister and where the reference is to the administration of the Benefit, it will refer to Service Canada.

Definitions

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

Eligibility

To be eligible for the Benefit, individuals must

Disability Tax Credit

Having Disability Tax Credit eligibility is proof obtained from the Canada Revenue Agency that someone is eligible 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. It is also an eligibility criterion for other federal, provincial and territorial benefits and programs.

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 speech-language pathologist. More information on the Disability Tax Credit is available in the “Implementation” section.

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 for the year prior and the year of expiry. The tax year in which they need to reapply is outlined in the Notice of Determination and Disability Tax Credit eligibility can also be viewed on the individual’s Canada Revenue Agency My Account.

The majority (63%) of working-age persons who are eligible for the Disability Tax Credit have permanent eligibility, meaning that their tax credit never expires and they never 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 2025–2026 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, regardless of their age, 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). If the individual has a cohabiting spouse or common-law partner, the spouse or partner must also have filed a tax return for that same year.

The Minister may exempt individuals from the cohabiting spousal/partner tax filing requirement under certain exceptional circumstances including that: their spouse/partner is a non-resident for tax purposes and does not have income from Canadian sources and would therefore not file a return, the individual is involuntarily separated from their spouse/partner (e.g. living in a long-term care home), or the individual is living in a situation of family violence as defined in the Divorce Act. Individuals granted an exemption will be treated as single.

Application

The Regulations provide flexibility for the Minister to design the Benefit application process. Service Canada, on behalf of the Minister, is designing an application process that will minimize, as much as possible, the burden on persons with disabilities. Individuals will 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). The non-regulatory details of the application process are described in the “Implementation” section.

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 yet applied for the Benefit. The 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 month prior to June 2025). If someone is not eligible for the Benefit in the month in which they are applying, that individual will 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 is calculated

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

Each of these concepts is explained below in greater detail.

Definition of income

Because the Regulations are targeting working-age Canadians with disabilities with low or modest income, the amount of the Benefit will vary based on an individual’s “adjusted income” as defined in the Regulations. The “adjusted income” of an individual includes the income of their cohabiting spouse or common-law partner, where applicable. It includes all sources of money that individuals and their spouse or common-law partner, where applicable, must report on their Income Tax and Benefit Return to the Canada Revenue Agency each year, with the exception of Registered Disability Savings Plans (RDSP) payments or Universal Child Care Benefit (UCCB) payments (which are taxable but excluded from adjusted income).

Most types of payments are in adjusted income and will be included in the Benefit calculation. Social assistance payments, workers’ compensation, and the Guaranteed Income Supplement are included in adjusted income although they are not taxable. However, some types of payments are not reportable to the Canada Revenue Agency, are not included in adjusted income and will not affect the Benefit: for example, payments of child benefits and tax credits, some compensation payments for personal injury/pain and suffering, and some categories of veterans’ benefits (such as the Canadian Forces Income Support and War Veterans’ Allowance).

The definition of adjusted income under the Regulations also excludes any payments of the Benefit itself.

Maximum amount

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

Income thresholds

An income threshold is the level of income that an individual or couple could have before the amount of their Benefit is reduced. Income below this threshold does not reduce the Benefit amount.

Under the 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 (an individual and their cohabiting spouse or common-law partner). This means that a single individual would 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 Benefit amount would begin to decrease; however, there is also an exemption for working income (see below).

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

Working income exemption

The working income exemption allows for some income from employment, self-employment or taxable scholarships to be excluded from the calculation of the Benefit amount. The purpose of the 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 will apply under the Regulations:

The working income exemption amounts will 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 plus the working income exemption if they are employed or self-employed (e.g. $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 the lowest incomes receiving the Benefit are the ones who get the highest Benefit amount.

There are two reduction rates that will apply depending on an individual’s or couple’s circumstances (in these examples, it is assumed that the individual or couple has no employment or self-employment income):

Once an individual’s income increases to a certain level above the income threshold, their Benefit payment will be $0. This level of income is known as the “phase-out income.” An individual’s phase-out income varies based on two factors:

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 one person eligible for the Benefit Couple where both individuals are eligible for the Benefit
Income range (for someone without income from work) over which the benefit amount is reduced $23,000 - $35,000 $32,500 - $44,500 $32,500 - $56,500
Income range (for someone with the maximum working income that can be included in the working income exemption) over which the benefit amount is reduced $33,000 - $45,000 $46,500 - $58,500 $46,500 - $70,500
Scenarios

The following examples illustrate how different situations will result in different Benefit amounts for the first payment period of the Benefit (from July 2025 to June 2026):

Scenario 1

Alina is 25 years old, single and lives with her parents. She is eligible for the Benefit. Her only income is $10,000 a year in provincial social assistance.

Although she lives with her parents, only Alina’s income is considered when calculating the Benefit. While the income of a cohabiting spouse or common-law partner is included in the calculation of the Benefit, the incomes of other relatives, including parents and children, are not considered, even if they live in the same residence.

Scenario 2

Nguyen lives alone and is eligible for the Benefit. He works full-time and earns $35,000 a year. He does not receive disability-related income or income from any other source.

Scenario 3

Myriam lives alone and is eligible for the Benefit. She receives $30,000 a year as income from a workers’ compensation program. She also works, earning $5,000 a year. In total, Myriam’s income is $35,000 a year.

Scenario 4

Sam and Rupinder live together with their young daughter. Sam is eligible for the Benefit while Rupinder is not. Sam has a job paying $48,000 a year. Rupinder stays home with their daughter and receives $7,000 from the Canada Child Benefit.

The Canada Child Benefit does not have to be reported on the Income Tax and Benefit Return, so it is not considered in calculating the Benefit.

Note: The working income exemption is the same whether the Benefit recipient or their cohabiting spouse/partner earns the income. In Scenario 4, Sam’s Benefit would be the same if Rupinder were working and earning $48,000 and he was not working, or if both were working and their total earnings were $48,000.

Scenario 5

Donna and Lucia are a common-law couple who both work. Each is eligible for the Benefit. They each earn $27,000 from a combination of work and self-employment, for a combined income of $54,000. They have no other source of income.

Changes during a payment period

The Benefit amount will be modified during the year in response to certain changes in the household status of the individual receiving the Benefit: if there is a change in their relationship status (e.g. 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 will be a change if a beneficiary’s cohabiting spouse or partner also starts to receive Benefit payments.

The payment could also stop in a payment period if the individual receiving it is no longer eligible. For example, this can happen if the individual ceases to be resident in Canada and has informed the Canada Revenue Agency of their change in residency.

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

How the Benefit will be paid

The Regulations 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 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 will 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 to receive Benefit payments in the July 2025 to June 2026 payment period.

Under the Regulations, the first month an individual could receive a Benefit payment 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 will receive a Benefit payment each month if their monthly Benefit payment amount is above $20.00. If an individual’s monthly Benefit payment is calculated to be $20.00 or less, the individual will instead receive a single Benefit payment that combines all monthly Benefit payments that they are owed for that payment period.

The amount of the Benefit will be recalculated every July as new income information becomes available through the income tax system.

Incarcerated persons

Persons incarcerated in a federal penitentiary are not eligible for the Benefit, except for their first month of incarceration and the month of their release.

Under the 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 for that month. Individuals who become ineligible to receive the Benefit because they become incarcerated in a federal penitentiary will need to reapply for the Benefit upon their release. [Note: This is a change from the draft Regulations as originally published in the Canada Gazette. Please see the “Summary of changes following prepublication in the Canada Gazette, Part I” for details.]

Suspension of benefits

Under the Regulations, Service Canada can suspend an individual’s payments 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 will be reviewed within a reasonable time by Service Canada. The individual’s payments will be reinstated if it is determined that they were eligible to receive the Benefit. The first payment will 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. If an individual requests to suspend their Benefit payments, they will not be eligible for the Benefit for the period it is suspended. Under the Regulations, they would need to write to Service Canada to request that their Benefit be suspended for up to a maximum of 24 months. When an individual requests to have their Benefit reinstated, their payments will resume the month following the month of the request or the month chosen by them, whichever is later. Should an individual wish to reinstate their Benefit payments after two years, they will have to reapply.

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 will 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 will 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 is payable to a person or agency designated by the Minister.

If an individual who is receiving the Benefit disappears and is presumed dead, the Regulations give authority to the Minister to deem them dead for the purposes of the Benefit. If it is later determined that the individual is alive, they will 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, they are able to have a representative (such as a friend or a family member) act on their behalf to apply for the Benefit, request that the government reconsider a decision, or appeal a decision. However, the Regulations only allow for payment of the Benefit to be made to an individual’s legal representative authorized in accordance with federal, provincial or territorial law (guardian, trustee, power of attorney, etc.). Additional information is provided in the “Implementation” section.

Note: The draft Regulations as initially published in the Canada Gazette, Part I, provided that, if an individual who is unable to manage their own affairs did 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. However, in response to community input, this provision has been removed. The Regulations as revised only permit payment of a Benefit to a legal representative authorized under federal, provincial or territorial law.

Amendments, rescissions and reconsiderations of decisions
Amendments and rescissions

The Regulations 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 will be notified by Service Canada of any changes to their Benefit.

Reconsiderations

The Regulations provide a process where individuals can request that Service Canada reconsider a decision it made. Individuals can request a reconsideration regarding their eligibility for the Benefit, the Benefit amount that they have received or will receive, and any monetary penalties imposed on them.

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

Service Canada will grant an extension to the 180-day time limit for making a request for reconsideration if it finds 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

If a person disagrees with a reconsideration decision, they will be able to appeal the decision to the Social Security Tribunal (the Tribunal) within 90 days of receiving the reconsideration decision. Individuals can also appeal a 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 Act. The Tribunal has two divisions: the General Division and the Appeal Division. All appeals of reconsideration decisions related to the Benefit will 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 will refer that issue to the Tax Court of Canada (the Tax Court) for decision.

If there is a referral to the Tax Court, the Tribunal will 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 will be determined. This information will 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 will be presented to a judge, and a decision will be made on the same day or not later than 90 days after the hearing is concluded. The decision will 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 will hear and decide the appeal on all other issues.

If an individual disagrees with the General Division decision, they will need to ask for permission to appeal to the Appeal Division. The application for permission to appeal will 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 will be issued, and the file closed. If the Appeal Division grants permission to appeal, the appeal will proceed and be heard and determined as a new proceeding. If an individual disagrees with an Appeal Division decision, they can 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 Regulations 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 allow the mistake to be corrected.

Verifying compliance, administrative monetary penalties and offences
Verifying compliance

The Regulations include powers to verify that the Benefit is going only to individuals who are eligible to receive it. Under the Regulations, Service Canada will 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 can also require that an individual provide them with any information or any document that they may require to verify compliance. They must 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 Regulations also set out administrative monetary penalties. Under the Regulations, the following acts constitute a violation and the person who committed the violation could be liable for a monetary penalty:

The Regulations also state, for greater certainty, that no administrative monetary penalty can 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 Regulations an administrative monetary penalty cannot be given to a person if they are already being prosecuted for the same act as an offence. As well, the Regulations provide that an administrative monetary penalty cannot be given to a person if five years have passed since the Minister became aware of the violation.

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

Administrative monetary penalties: amounts

The 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 will be based on the maximum annual Benefit amount that was in place during the payment period in which the violation was committed.

Offences

The Regulations provide that a person will 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 will not apply where individuals made errors in good faith.

The Regulations establish the offences but do not set fines or terms of imprisonment. The default fines or terms of imprisonment are 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 Regulations, any overpayments of the Benefit, as well as any administrative monetary penalties, are seen as money owed to the Government (i.e. the Crown) and the Regulations 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 Regulations also provide that debts that have not been recovered can be certified and registered in the Federal Court or a superior court of a province. Such a certificate will have the same force and effect as if it were an order of the court. This will 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 Regulations, the amount of the debt will be deducted from payments that would have otherwise been made to the individual, such as a tax refund.

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

The 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 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 will 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 will need to identify the provision 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

Prior to prepublication in the Canada Gazette, Part II

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 informed the drafting of the regulations by inviting comment on the general regulatory authorities under the CDB Act; the second phase of engagement was the Government of Canada’s formal regulatory development process with the prepublication of the draft regulations in the Canada Gazette, Part I.

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 (F/P/T) Ministers Responsible for Social Services Forum, the F/P/T Deputy Ministers Responsible for Social Services Forum and the F/P/T 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. Provinces and territories provided early feedback with respect to the Benefit amount as announced in the 2024 Budget, which is included in the summary below. Per the CDB Act, any agreements reached with provinces and territories regarding the Benefit will be made public.

Engagement after prepublication in the Canada Gazette, Part I

Bilateral meetings have been held by Employment and Social Development Canada deputy ministers, assistant deputy ministers and working level officials. Individual bilateral discussions at the working level began as of July 30, 2024, to solicit P/T feedback, address technical issues, and identify potential interactions between the Benefit and P/T income support programs. Multilateral discussions with provincial and territorial governments have also been organized at all levels including the Federal/Provincial/Territorial Ministers Responsible for Social Services Forum, the Federal/Provincial/Territorial Deputy Ministers Responsible for Social Services Forum, and the F/P/T Persons with Disabilities Advisory Committee with the participation of the Directors of Income Support Committee.

Following the June 2024 publication of the draft Canada Disability Benefit regulations in the Canada Gazette, Part I, and the September 2024 Federal/Provincial/Territorial Ministers Responsible for Social Services Forum meeting, several provinces and territories have shared feedback on the design of the Benefit with the Federal Minister.

After the September 2024 meeting, Ministers also released a joint communiqué in which they welcomed the opportunity to discuss the Benefit, agreed that the social and financial inclusion of persons with disabilities are top priorities, and highlighted the importance of respecting P/T programs and ensuring equitable and simple access for those most in need. The changes to the Income Tax Act to exempt the Benefit from being treated as ’income’, which were proposed in December 2024 in the 2024 Fall Economic Statement, were communicated directly to the 13 provincial and territorial ministers responsible for social services by the Minister of Diversity, Inclusion and Persons with Disabilities.

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 in response to the publication of some Benefit design details in the Government of Canada’s 2024 Budget. 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 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

1. Age

The Benefit is designed to fill the gap in existing federal benefits between the Canada Child Benefit / Child Disability Benefit (targeting families with children under 18 years of age) and Old Age Security / Guaranteed Income Supplement (targeting ages 65 and older). It addresses the fact that the rate of poverty among working-age persons, aged from 18 to 65, with disabilities is higher than those 65 years and older, the age when people become eligible for Old Age Security / the Guaranteed Income Supplement.footnote 5 As well, for most working-age persons with disabilities who do not qualify for Canada Pension Plan Disability, there is a lack of federal supports beyond tax measures and long-term savings vehicles. The Canada Disability Benefit would address this gap for working-age persons with disabilities.

2. Disability

While carefully evaluating alternatives put forward by stakeholders in regard to assessing the disability criteria of eligibility, the Government prioritized the goal of maintaining integrity and equity between individuals across jurisdictions in its assessments. Disability eligibility criteria solely linked to provincial or territorial benefits could potentially create disparities where an individual would qualify for the Benefit in one jurisdiction but not in another, which would complicate the smooth transition of services should an individual move, for example.

Using the Disability Tax Credit was determined to be the best option in establishing disability eligibility because it will ensure the Government maintains a consistent and equal approach to determining disability eligibility for the Benefit across all jurisdictions. It will significantly streamline the application process to make it more accessible, given over 500 000 working-age persons with disabilities already have eligibility for the Disability Tax Credit. 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 also avoids adding new complexity to the existing federal disability measures, as it would provide a simplified application process and timely implementation (e.g. 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 practitioners 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 2025–2026, 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.

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 streamlined, inclusive and accessible. Representatives will 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 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 recommendations in their early feedback on the 2024 Budget:

Government response

1. Benefit amount

In setting the Benefit amount, the Government considered a range of factors, including those listed in subsection 11(1.1) of the CDB Act:

The Benefit amount and target demographics are intended to provide support to individuals below the poverty line.

As advocated by stakeholders, the Regulations index the Benefit amounts, thresholds, and exemptions to inflation. These adjustments will support a similar level of access to the Benefit over time, as earnings and other federal/provincial/territorial benefits increase in value. While some stakeholders suggested that the Benefit amount should vary in each region in Canada based on the cost of living, the Benefit will provide equal payments to recipients across all regions to avoid regional disparities in the amounts that individuals receive.

The Government will also continue to engage with provinces and territories 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. If still needed, the Government will also coordinate with provinces and territories in developing an approach to sharing information about the Benefit amounts that individuals receive.

2. Impact on barriers to work

In response to stakeholder feedback, the Regulations include a working income exemption so that working individuals can continue to do so up to a maximum amount. For example, for a single individual, the maximum working income exemption of $10,000 will be added to the income threshold of $23,000 so that the reduction rate will not apply until the individual’s income passes $33,000.

3. Treatment of spousal income

In response to concerns raised by stakeholders, the Regulations include a higher income threshold and working income exemption for couples, to mitigate the impact of spousal/partner income sources on the value of the Benefit. Additionally, couples who are both eligible for the Benefit will each receive a Benefit of their own, and the Benefit reduction rates they face will be reduced by half (10% instead of 20%) to ensure that they are treated comparably to other households.

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

1. Reconsiderations and appeals

In response to stakeholder feedback, the Regulations set the time for requesting a reconsideration of a decision at 180 days as compared to the 90-day limit used in other programs (e.g. Old Age Security). Individuals can also request Service Canada to extend the period beyond 180 days.

As well, appeals of decisions made by under the CDB Act will be made to the Tribunal. However, the Tax Court of Canada will be responsible for deciding matters related to income that are referred to it by the Tribunal.

2. Administrative errors

Under the Regulations, Service Canada has authority to remedy administrative errors so that they do not detrimentally affect individuals eligible for the Benefit.

3. Compliance and enforcement

In response to stakeholder concerns about the precarious living situations of many individuals who are applying for social assistance benefits, the Regulations establish a system of administrative monetary penalties as an alternative to offences in certain situations. As well, the Regulations make it clear that monetary penalties would not be imposed in cases where someone simply made a mistake.

Prepublication in the Canada Gazette, Part I

On June 28, 2024, the proposed Regulations were prepublished in the Canada Gazette, Part I, for an 86-day comment period. A total of 2 734 comments, from 916 commenters, were submitted. In total, 831 commenters self-identified as an individual and 85 commenters identified as representing an organization. The organizations can be grouped under the following categories:

The five most common recommendations that commenters raised were to

In addition, between September and November 2024, the federal Minister of Diversity, Inclusion and Persons with Disabilities received written feedback from eight provincial and territorial ministers on the Benefit Regulations. Common feedback included suggestions on eligibility criteria for the Benefit; barriers accessing the Disability Tax Credit; feedback on income threshold amounts; and recommendations on the reportability of the Benefit.

The views of individuals and organizations were aligned on the key themes raised. In some cases, organizations provided more nuance on certain topics. In particular, a large proportion of organizations provided feedback on aspects related to reconsiderations of decisions, appeals, representatives, the requirement to reapply after a change to one’s eligibility for the Benefit, and the use of offences as penalties.

Some organizations also raised industry-specific considerations. The four provincial public guardian and trustee agencies suggested that Service Canada adopt a bulk application process and bulk file and payment process to make it easier for public guardian and trustee agencies to represent a high volume of clients. These agencies also recommended that Service Canada and the Canada Revenue Agency exchange information so that Benefit applications require less information. Additionally, some medical associations cautioned that using the Disability Tax Credit form presents barriers for applicants because the forms are complex to complete, and many persons with disabilities lack access to a physician who can complete the form.

In addition, close to 7 000 emails were received from two letter-writing campaigns during the 86-day regulatory consultation. The suggestions raised in these letters were also among the key themes raised in comments submitted through the Canada Gazette web page:

Some commenters also requested more information about the following topics:

In response to stakeholder requests for more clarity on these three topics, additional detail was added to the Regulatory Impact Analysis Statement. Under the “Description” section, five scenarios were added to illustrate how people would receive different Benefit amounts based on their circumstances. Under the “Implementation” section, details were added to clarify how someone can support someone else in managing their affairs related to the Benefit and how people will be able to apply for the Benefit.

The summary of recommendations and themes raised during the prepublication of the proposed Regulations and the Government’s responses have been listed in order of how many commenters raised these concerns. As detailed below, in some cases, changes were made to the Regulations in response to stakeholder feedback.

Increase the Benefit amount, thresholds, and working exemptions

The most frequent comment received was to increase the maximum value of the Benefit amount above $200 per month to better achieve the goal of reducing poverty among persons with disabilities. There were 634 commenters who made this suggestion. Many of these commenters noted that this maximum value does not take into account the extra costs of living for persons with disabilities (e.g. medications, medical devices, and support services). Commenters proposed a wide range of alternative monthly amounts, ranging between $500 to $2,400. There were 52 commenters that suggested increasing the maximum monthly amount to be on par with Old Age Security and/or the Guaranteed Income Supplement.

There were also 254 commenters that indicated the income thresholds and working exemptions for the Benefit were set too low to support the goal of lifting persons with disabilities out of poverty. Some organizations felt that the values set for the thresholds and working income exemptions need to be based on the Market Basket Measure for poverty thresholds plus 30% to account for the additional costs of living for persons with disabilities, as the Market Basket Measure does not factor in these expenses.

Government response

The Benefit is designed to address a gap in income supports for persons with disabilities in the age groups not covered by the Canada Child Benefit (which supports families with children under 18) and Old Age Security and the Guaranteed Income Supplement (which assist those 65 and older). The Benefit is also designed to complement other sources of income and support available to persons with disabilities. The amount of the Benefit is intended as a first step that is estimated to benefit over 600,000 persons with disabilities by 2029–2030. The intention is to see the combined amount of federal and provincial or territorial income supports for persons with disabilities grow to be comparable to the support provided through Old Age Security and the Guaranteed Income Supplement to fundamentally address the rates of poverty experienced by persons with disabilities.

The maximum monthly value, income thresholds, and working income exemptions have been designed to maximize poverty reduction and improve the financial security of persons with disabilities within the investment approved by Parliament in Budget 2024. These values were chosen with the goal of targeting the Benefit to those most in need without reducing it too quickly for people who have employment income or who start a household with a spouse or partner. The thresholds were set high enough to avoid negative interactions with many existing benefit programs. As noted above, the stated goal is to see the combined amount of federal and provincial or territorial income supports for persons with disabilities grow to the level of Old Age Security and the Guaranteed Income Supplement. This long-term goal is intended to fundamentally address the rates of poverty experienced by persons with disabilities. The creation of the Benefit is a first step that will enable federal engagement with provinces and territories to understand how it will interact with their existing supports, and how to grow the combined supports for persons with disabilities. As a result, these provisions in the Regulations have not been amended.

Persons with disabilities encounter many barriers to obtaining the Disability Tax Credit

The second most common theme raised was related to the barriers that persons with disabilities face in trying to apply for the Disability Tax Credit.

There were 313 commenters who felt that the eligibility criteria for impairments on the Disability Tax Credit are too restrictive and discriminatory because they exclude many persons with disabilities, such as those with episodic disabilities, complex disabilities, and intellectual disabilities. Many individuals who submitted these comments stated that the Disability Tax Credit form fails to capture their lived experiences with barriers in daily life. Organizations representing different types of disabilities noted the exceptional difficulties that their community members face in meeting the criteria, particularly persons with intellectual disabilities and disabilities that are episodic or fluctuate, such as multiple sclerosis, psoriasis, myalgic encephalomyelitis, fibromyalgia, and multiple chemical sensitivities.

Many commenters also raised concerns about barriers to accessing physicians and other medical professionals to complete Part B of the Disability Tax Credit form, which must be filled out by a medical practitioner. Commenters noted this is an increasing problem due to many people lacking regular access to a physician with whom patients can build a familiar, trusting relationship. One medical association expressed concern about the heavy demand that the Disability Tax Credit requirement would place on physicians and provincial offices of the public guardian and trustee. Several commenters suggested expanding the list of medical professionals who can complete the medical portion of the application to include social workers who develop working relationships with clients.

There were also many individuals who said that the costs associated with applying for the Disability Tax Credit, including time delays, are considerable, as many individuals must travel to clinics and incur out-of-pocket expenses related to applying, most notably the doctors’ fees for completing the form that are often borne by patients.

Some organizations also reported that there is low uptake for the Disability Tax Credit because of lack of awareness about it. Organizations noted that obtaining the Disability Tax Credit is challenging, because the application process is very demanding, and the Disability Tax Credit offers no benefits for those with little to no income (due to it being a non-refundable tax credit).

Government response

The Disability Tax Credit was chosen as an eligibility criterion in order to deliver the Benefit as quickly as possible and to ensure nationwide consistency of eligibility with a well-established adjudication system. While modifications to the Disability Tax Credit criteria and form are beyond the scope of the Regulations, the Government has taken note of stakeholder concerns and is taking steps to reduce access barriers to the Disability Tax Credit. The Canada Revenue Agency has been working to address the known issues of the application complexity and low Disability Tax Credit awareness and uptake among underserved populations and regions. Work underway includes providing outreach to underserved populations, using Disability Tax Credit navigators to assist with complex and contentious Disability Tax Credit files and better communication with applicants. Additionally, Budget 2024 provided funding to assist with the cost of the medical forms required to apply for the Disability Tax Credit and for community-based navigation services to improve awareness and take-up of federal, provincial and territorial programs available to working-age Canadians with disabilities.

The Canada Revenue Agency has also introduced a fully digital Disability Tax Credit application process, which was launched on May 15, 2023. This new process makes it faster and easier for applicants and their medical practitioner to digitally complete their respective parts of the application form. Applicants can now complete Part A of the application form via My Account, through a telephone agent, or by using an automated voice service. Once completed, the applicant will receive a reference number to give to their medical practitioner. Using the applicant’s reference number, medical practitioners can complete Part B of the form through the digital application for medical practitioners. To simplify the application process and save time, the applicant’s portion of the form is pre-populated with information already on file. Once completed by the medical practitioner, the form is automatically submitted.

The digital application is a dynamic form that guides the medical practitioner through the application. Based on the information provided, the digital application will only ask questions that are needed to determine eligibility. The traditional paper form remains available to those who are unable to, or prefer not to, complete the application online or by phone.

Spousal/partner income should not be included in calculating the Benefit amount because it reinforces financial dependency among persons with disabilities

The third most common comment was disagreement with the inclusion of spousal income for calculating one’s Benefit entitlement. There were 279 commenters that raised this issue. These commenters expressed concern that this design choice for the Benefit reinforces financial dependency and consequently deprives persons with disabilities of their dignity and autonomy.

Commenters explained that this design choice also makes it more difficult for people receiving the Benefit to leave situations of domestic violence and abuse. This is because the person’s social assistance benefits may be significantly reduced due to their cohabiting spouse’s/partner’s income, and therefore the person might be dependent on their spouse or partner for support. Commenters noted that a spouse/partner tax filing requirement also reinforces a person’s dependency on their partner/spouse to access the Benefit. Commenters cautioned that this design choice disproportionately impacts women with disabilities, who face higher rates of domestic violence and lack of access to household finances and resources.

Government response

Income-tested benefits, such as the Guaranteed Income Supplement, the Canada Child Benefit, and provincial/territorial social assistance, generally use family income (which includes the incomes of cohabiting spouses and common-law partners but not other members of a family or household, like brothers and sisters, parents or children) to calculate the amount of support a person needs. The rationale for this is that spouses and partners who live together can pool their assets and share expenses (such as shelter and food costs). Given that the Benefit is a poverty reduction measure, it focuses on individuals and families with the lowest incomes, in order to get maximum poverty reduction and increased financial security. However, stakeholder concerns that considering spousal/partner income when calculating benefits can leave persons with disabilities in a vulnerable position and interfere with their autonomy have been recognized and reflected in the Benefit design by having higher thresholds which allow couples to keep more of their income before their Benefit begins to be reduced and by reducing in half the reduction rate of the benefit for dual beneficiary couples. As well, in response to concerns about individuals who are experiencing domestic abuse, the Regulations were amended to allow individuals to be exempt from the spousal/partner tax filing requirement in certain circumstances. Individuals who receive the exemption will be treated as single for the calculation of the Benefit, and they will not need their cohabiting spouse or partner to file an Income Tax and Benefit Return.footnote 6

For those encountering family violence, neglect and abuse, the Canada Revenue Agency web page also has a series of support measures online to assist individuals in getting their tax benefits and credits when in an abusive situation.

Eligibility should be expanded to include anyone receiving benefits from other federal, provincial, and territorial disability programs

There were 278 commenters that recommended extending eligibility for the Benefit to anyone who is receiving other federal, provincial, and territorial disability benefits. These commenters indicated that this change would better support the stated goal of reducing poverty among persons with disabilities and give alternative avenues for those impacted by barriers to applying for the Disability Tax Credit.

There were many individuals who expressed frustration with having to repeatedly prove their disability for different programs instead of using existing programs or creating a harmonized standard across Canada.

Government response

A significant challenge with basing eligibility on provincial and territorial programs is that it would create gaps where someone qualifies for the Benefit in one jurisdiction but not in another, which goes against the principle of a national Benefit. It could also make it difficult for those who are eligible based on a provincial or territorial program to smoothly transition to another province or territory without impacting their eligibility for the Benefit. While the Regulations were not amended to expand the eligibility criteria to other federal, provincial and territorial programs, the intention is to continue to consider the feasibility of changes to the Benefit program after the official launch of the Benefit as well as options to decrease the steps needed to apply for the Disability Tax Credit and the Benefit.

Individuals who meet the eligibility criteria should be auto-enrolled to receive the Benefit instead of having to apply for it

There were 196 commenters that recommended that the Government provide auto-enrolment for anyone who meets the eligibility criteria for the Benefit. Commenters also said that if an application is needed, there should be no need for subsequent applications. Some commenters supporting auto-enrolment also said there should be an opt-out option for those who do not wish to receive the Benefit, as some individuals might not want their Benefit payment to impact their entitlement to other benefit programs.

Government response

The CDB Act requires an application for the Benefit, therefore auto-enrolment would require legislative changes before the Benefit launches. As well, auto-enrolment would require the development of an extensive information sharing process between departments. An opt-out system would need to be developed as well, along with other integrity approaches. The intention is to continue to explore different intake processes in the future to further simplify the application for clients and/or that address specific groups’ needs.

The Benefit should not reduce or be reduced by other social assistance programs

There were 142 commenters concerned about the risk that people would lose the amounts they receive from other federal, provincial, territorial and private benefit programs as a result of receiving the Benefit. Similarly, commenters also requested more details about whether the Benefit itself would exempt other federal, provincial and territorial social assistance programs. These commenters often noted that the Regulatory Impact Analysis Statement provided no guarantee that the Government could prevent provincial, territorial, and private insurance benefit programs from reducing the full value of people’s Benefit payments. Some commenters suggested that the Government exempt social assistance, Canada Pension Plan Disability and workers’ compensation from the Benefit.

Commenters concerned about unintended interactions also requested more clarity as to whether the Benefit would be non-taxable and whether individuals must report the Benefit on their Income Tax and Benefits Return. They were concerned that if people must report the Benefit on their Income Tax and Benefits Return, their Benefit amount would be reduced. Additionally, these commenters expressed concern that requiring people to report the Benefit on their Income Tax and Benefits Return would reduce the amounts that people receive from other federal benefits, such as the Canada Child Benefit, the Canada Workers Benefit, and the GST/HST Credit.

Government response

In response to concerns about the federal government’s treatment of the Benefit, the 2024 Fall Economic Statement proposed future legislative amendments to exempt the Benefit from being treated as income under the Income Tax Act. This would also ensure the Benefit does not reduce the amount a person receives from other federal income-tested benefits and programs, such as the Canada Child Benefit, the Canada Workers Benefit, and the GST/HST Credit. People receiving the Benefit would not be required to report the amount they receive on their Income Tax and Benefit Return. As previously indicated, at the present time, the required amendments have yet to be enacted.

Regarding the calculation of the Benefit, the Benefit is income-tested to ensure that it is targeted to those most in need, including those who face gaps in income support that are not addressed by other sources of social assistance. The goal of the Benefit is to supplement the income of persons with disabilities to address these gaps. To support this goal, the Benefit applies a single general income exemption regardless of the source of income (as well as an additional earnings exemption). However, some sources will be exempt: payments from Registered Disability Savings Plans, payments of child benefits and tax credits, some compensation payments for personal injury/pain and suffering, and some categories of veterans’ benefits (such as the War Veterans’ Allowance). These exempted sources of income are intended for different goals and purposes (for example, the Registered Disability Savings Plan is a program that is intended to help persons with disabilities save for their long-term financial security).

Regarding provincial and territorial benefits, since these do not fall under federal jurisdiction, amending the Regulations would not be a sufficient mechanism to address the risk of people losing amounts they receive from provincial and territorial programs because of the Benefit. For this reason, Employment and Social Development Canada is continuing to engage with the provinces and territories with the goal of ensuring that people receive the full amount of the Benefit for which they are eligible. Coordination is also ongoing with provinces and territories to develop an approach to sharing information about the benefit amounts that individuals receive to help achieve this goal. A full summary of engagement with provinces and territories to date, including bilateral and multilateral meetings, is available further above in the “Engagement with provinces and territories” section.

Federal officials have also been engaging with the private insurance industry on the question of potential interactions with the Benefit, with the objective of preventing the Benefit from reducing private insurance benefits. Similar to provincial and territorial treatment of the Benefit, the Regulations are not a sufficient mechanism to address how private insurance contracts treat the Benefit. The provisions in private insurance contracts fall under the jurisdiction of the provinces and territories, which generally do not legislate detailed requirements with respect to the provisions of short- and long-term disability insurance contracts. With the publication of the Regulations, Employment and Social Development Canada will continue to engage the private insurance sector with the goal of ensuring that there are no unintended interactions between the Benefit and private insurance and to maximize the impact of the Benefit.

Ensure the application process for the Benefit program is simple, accessible, and barrier-free for persons with disabilities

There were 104 commenters who raised the importance of designing an application process to be as simple and accessible as possible, with a variety of options and formats available to suit the needs and preferences of persons with disabilities. In their view, communication should be in clear, plain language, with infographics to help summarize complex information. There were also suggestions that staff members receive proper training to help persons with disabilities navigate every aspect of the new benefit program. Many commenters felt that a separate application for each of the Disability Tax Credit and the Benefit would burden applicants.

Government response

Service Canada will be introducing a simple, light-touch application by Benefit launch and has done testing and consulting with members of disability communities on this process. Applicants will not be asked to repeat information that the Canada Revenue Agency has already shared with Service Canada. The details of this application process are explained further in the “Implementation” section below.

Improve access to the Benefit for underserved populations

Among the commenters who raised the importance of an accessible application process, some organizations requested greater assurances that support would be available to facilitate access for underserved populations who face barriers to accessing health care and government services, including Indigenous persons and those who are homeless, through public outreach, education, and navigation programs.

There was also concern raised about barriers for persons with disabilities in dependent or abusive situations, especially women with disabilities, in filing complete income tax information. Many commenters suggested additional measures to help people with tax filing given that this is an eligibility requirement. One common suggestion included using simplified forms for completing tax and benefit returns.

Government response

Traditional communication approaches (e.g. advertising, social media) will be used to raise awareness about the Benefit, along with virtual and in-person awareness information sessions for targeted groups (e.g. those experiencing homelessness and living in congregate settings, racialized communities, and Indigenous communities) that explain the steps needed to meet and maintain eligibility for the Benefit.

In fall 2024, work was undertaken with disability organizations to establish interim solutions to scale up existing community-based disability benefits navigation systems. Community organizations have been funded to deliver disability benefits navigation from October 2024 to March 31, 2025. Additionally, in December 2024, the call for proposals related to the funding announced in Budget 2024 for community-based navigation services launched. Organizations will receive funding to help connect persons with disabilities in underserved populations to federal, provincial, and territorial government programs that could assist them — including the Benefit. Agreements with organizations are anticipated to be in place in the spring of 2025.

To expand its reach, Service Canada offers services within communities through its Community Outreach and Liaison Service. This program builds relationships with community organizations to raise awareness of and offer application support for programs and benefits through application intake clinics, support to acquire personal identity documents and assistance with tax and benefit form filing. This includes dedicated capacity to reach all Indigenous communities and an effort to reach a broad range of demographic groups, including underserved and harder to reach populations.

The Canada Revenue Agency is also supporting strategies and initiatives to help individuals file their taxes, including the following:

Eligibility should be expanded to include seniors with disabilities

There were 59 commenters that suggested that the Benefit should be available to persons with disabilities older than 65. These commenters noted that seniors face disproportionately high rates of disability and financial insecurity. This perspective was also raised in previous consultations on the Benefit.

Government response

The Regulations were not amended to change the age range in the eligibility criteria. This is because the purposes of the CDB Act are to reduce poverty and support the financial security of working-age persons with disabilities. This design choice is intended to address the poverty rates among working-age persons with disabilities, which are higher than the rates among those 65 years and older.

The collection of overpayments will cause further financial hardship on low-income persons with disabilities

There were 31 commenters that expressed concern that including provisions that allow the Government to collect overpayments disproportionately impacts low-income persons with disabilities, who are likely to be in precarious financial circumstances. As a result, some of these comments recommended removing provisions that would allow the collection of overpayments from individuals. Some commenters also felt that recipients of the Benefit should not be penalized for mistakes made by the Government.

Government response

The Regulations were not amended because they currently provide Service Canada with flexibility to minimize the burden of returning overpayments. As a result, a debt owed by an individual could be recovered in one single payment or, at the discretion of the Minister, in instalments in any amount that does not cause undue hardship to the individual. No interest would be payable on any amount owing resulting from an erroneous payment or overpayment unless the payment was made because of a violation (e.g. where a person knowingly made false or misleading representations in relation to an application).

Adjusting the Benefit amount and thresholds by region to reflect the higher costs of living for persons with disabilities

There were 30 commenters who suggested the Benefit amount and thresholds should be adjusted based on geographic region to account for the cost of living in different geographic areas, particularly those living in dense urban centres and those in remote regions. Some organizations noted that persons with disabilities living in northern communities and the territories face disproportionately higher rates of poverty and have fewer essential services available, such as banks, medical clinics, and grocery stores.

Government response

While recognizing that residents in large urban centres, northern communities and other parts of Canada often face higher costs of living, the amount and thresholds set in the Regulations have not been amended to vary across regions. The Benefit is designed to be a national benefit with a uniform amount across Canada, similar to other major federal income support programs, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Benefit, which also do not vary by region or location.

People should be entitled to retroactive payments dating back to when Canada Disability Benefit Act received royal assent (June 2023)

There were 22 commenters who suggested that when the Benefit launches, people should be eligible for payments dating back to the month that the CDB Act received royal assent, which was in June 2023. Commenters said that this would compensate people eligible for the Benefit for the time delay between when the CDB Act came into force and when the Regulations came into force.

Government response

The goal has been to implement the Benefit as quickly as possible without sacrificing the quality of consultations or the Benefit itself. However, under the CDB Act, people cannot be eligible for Benefit payments until the Regulations come into force, as the Regulations are needed to establish the eligibility criteria.

Deliver the Benefit through a refundable Disability Tax Credit instead of a new benefit program

There were 19 commenters that suggested that the Benefit should be delivered through a refundable Disability Tax Credit instead of creating a new program. In this scenario, individuals who met the eligibility criteria would receive the amount as a tax credit from filing their income tax and benefits return instead of applying through a new benefit program.

Government response

Making the Benefit a refundable tax credit would require changes to the CDB Act and the Income Tax Act, as well as changes to the delivery infrastructure for the Benefit, significantly delaying the delivery of the Benefit.

The objective has been to move forward as quickly as possible while also ensuring that the disability community is engaged in the regulatory development process, as required by the CDB Act.

Promote autonomy over guardianship for those who need support in managing their affairs

There were 17 commenters, including organizations representing persons with intellectual disabilities, that emphasized the need to ensure that the Regulations support the autonomy of persons with disabilities in managing their own affairs and reduce reliance on guardianship. These commenters advised that the Regulations should focus on supporting individuals to access the Benefit and allowing them to identify trusted individuals who can communicate with the Service Canada on their behalf and support them in the management of the Benefit. Many commenters also cautioned that there should also be sufficient oversight and authorization in place to hold representatives accountable and prevent financial abuse.

After the prepublication of the proposed Regulations in the Canada Gazette, Part I, the COVID-19 Disability Advisory Group (Advisory Group) was engaged on this topic. The Advisory Group advocated for applicants being able to assign a supporter (such as a friend or family member) to act on their behalf, while still managing their own benefit. The Advisory Group also raised concerns about Service Canada having a role in assessing capacity and entering into agreements with persons or agencies to accept payments on someone’s behalf, which was possible under paragraph 19(1)(b) of the draft Regulations. The Advisory Group cautioned that permitting Service Canada to enter into an agreement with a person or agency to accept a payment on behalf of someone whom Service Canada determined is incapable of managing their own affairs could undermine the autonomy of the individual.

Some commenters also requested that the Regulatory Impact Analysis Statement provide more clarity regarding who would be allowed to manage another person’s Benefit or apply on their behalf.

Government response

In response to concerns about the role of Service Canada in assessing legal capacity, paragraph 19(1)(b) was removed from the Regulations. Under the amended Regulations, Service Canada may only direct Benefit payments to someone’s authorized legal representative (including a power of attorney, guardian, or a trustee) in situations where there is already such a person appointed in accordance with provincial and territorial law.

Regarding the suggestion that applicants be able to assign a supporter (such as a friend or family member) to act on their behalf while still managing their own Benefit, individuals will be able to use supporters to help them apply for the Benefit, request a reconsideration of a decision, or appeal a decision without needing legal authorization (for example, the support person can be the person’s friend, family, or support worker). However, a representative must have legal authorization (e.g. must be a power of attorney, guardian, or a trustee) to receive a Benefit payment on behalf of the person. This approach is intended to balance concerns raised by reducing reliance on guardianship while also ensuring there are sufficient mechanisms to hold representatives accountable with respect to payments. More details about how someone can assign a support person are available under the “Implementation section below.

While the Regulations set out the authority for who may act as representatives, many of the suggestions raised by stakeholders to promote autonomous decision-making, such as ensuring there are communication supports and training for Service Canada staff, will be implemented at the operational level through program delivery. For more information, please refer to the “Implementation” section below.

Use less stigmatizing language towards persons with disabilities in the Regulations

Legal clinics and organizations representing intellectual disabilities also proposed changing language in the Regulations that they suggested was stigmatizing towards persons with disabilities. One organization suggested removing the heading “incapacity” in the draft Regulations.

Government response

The heading referring to “Incapacity” in the Regulations has been amended to “Representatives.”

Standardizing the application process for public guardianship and trustees who represent individuals eligible for the Benefit

Among the comments from four provincial agencies of public guardians and trustees (PGTs), there were suggestions to develop a flexible and responsive system for PGTs who represent individuals eligible for the Benefit. Specifically, there were suggestions for Service Canada to standardize the information flow for PGTs, such as a bulk application process and allowing a bulk file and payment process. These agencies noted that the Regulations should include these processes to reflect the unique role that the agencies have in representing high volumes of people who are eligible for benefit programs. They also suggested that the administrative load on public guardians and trustees would be reduced if the Canada Revenue Agency shared tax information (e.g. income and marital status) with Service Canada.

Government response

While the Regulations provide authority for the application process, they do not set out the operational details, such as bulk application processes and data exchange between federal departments. Rather, these suggestions apply to the operational level of program delivery. Under the Canadian Dental Care Plan, Service Canada’s Community Outreach and Liaison Service has been supporting public guardians and trustees with bulk application processes; Service Canada is exploring whether a similar process may be possible for the Benefit in response to these comments.

Additionally, as explained further under the “Implementation” section below, a data exchange mechanism will be put in place between Employment and Social Development Canada and the Canada Revenue Agency to facilitate the delivery and administration of the Benefit. This data exchange will allow for a simplified application in which Service Canada sends invitation to apply letters to potential eligible Benefit recipients based on available Canada Revenue Agency data (for example persons who are eligible for the Disability Tax Credit who filed their taxes and are within the income threshold).

Expanding the types of decisions that can be reconsidered and appealed under the Regulations

There were 14 legal clinics that raised concerns that language in section 21 of the draft Regulations was unclear as to whether certain decisions could be reconsidered and subsequently appealed. These commenters often mentioned decisions related to administrative errors and overpayments as examples. They argued that section 10.1 of the CDB Act appears to contemplate appeals about amounts that a person has received, which was not reflected in the draft Regulations.

Government response

In response to stakeholder feedback, the Regulations were revised to clarify the types of decisions for which individuals could request a reconsideration (and subsequently appeal). This change allows for reconsiderations of decisions respecting the amount of the Benefit that has been received or will be received.

Set timelines in the Regulations for how long Service Canada can take to respond to requests related to reconsiderations of decisions

Legal clinics also suggested amending the Regulations so that Service Canada cannot take longer than 30 days to reconsider a decision that someone has requested for reconsideration. More specifically, they proposed requiring Service Canada to take no more than 30 days to consider and respond to

Government response

The Regulations require Service Canada to reconsider a decision and respond to someone’s request for an extension of time “within a reasonable time.” No changes are being made to specify a set number of days because timelines for responding to these requests are established through service standards, which allow flexibility in situations where timelines are impacted by operational factors (e.g. obtaining information from an applicant). Service Canada is designing service standards for the delivery and administration of the Benefit, which will be implemented before the launch of the Benefit. Publicly available service standard metrics are usually developed one year after a benefit/program is launched to determine what is feasible based on the available baseline data and are available on GC Infobase.

Increase the time limit for individuals to request reconsideration

There were also suggestions from legal clinics and individual commenters to increase the time limit for individuals to request a reconsideration of a decision from 180 days to 24 months. Commenters explained that this increase is needed to reflect the difficulty that persons with disabilities may face in obtaining information related to their Benefit entitlement, especially medical information.

Government response

The Regulations were not amended to increase the time an individual has to request a reconsideration of a decision from 180 days to 24 months. The 180-day period was set based on previous suggestions from stakeholders that the time limit should be longer than the 90-day limit used in other programs such as Old Age Security. However, it is still possible for Service Canada to grant an extension beyond the 180-day time limit if it finds that the applicant’s ability to respect the deadline was impacted by at least one of the situations set out in the Regulations, such as, for example, if the person suffered a serious accident, injury or illness, or if the person suffered serious emotional or mental distress.

Benefit payments should be portable across provinces and territories

Some disability organizations requested more clarity as to whether Benefit payments would be portable, meaning that one can easily move between provinces and territories without disruption to their Benefit payments.

Government response

The Benefit is portable and will be available to eligible individuals regardless of their address within Canada, ensuring that beneficiaries can move between provinces and territories without any disruption to their Benefit payments. This is because the Benefit is national in scope like other major federal income support programs that do not vary by region or location (e.g. Old Age Security and the Canada Child Benefit) and uses the Disability Tax Credit, which is a federal credit, as one of the program’s eligibility criteria.

Benefit recipients should not have to reapply if they temporarily lose eligibility due to changes in their circumstances

Many organizations also suggested that people should not be expected to reapply for the Benefit due to changes in their circumstances that could affect their eligibility or entitlement to Benefit payments. Examples include someone’s income increasing above the income threshold at which their entitlement becomes $0, change in residency, incarceration, and expiration of eligibility for the Disability Tax Credit.

Government response

Individuals will need to reapply if their circumstances change and they were previously notified that they no longer meet one of the following eligibility criteria in the Regulations: age, eligibility for the Disability Tax Credit, residency, citizenship/immigration status, incarceration status and tax filing requirements. This approach is needed to ensure consistency in the application process for administering the Benefit.

However, someone’s entitlement to a Benefit payment based on their income level is not considered an eligibility criterion. Therefore, individuals who meet all program criteria but are temporarily not entitled to a payment (e.g. because their income is higher than the thresholds) will maintain active status. This approach ensures that they will not have to reapply ahead of the next payment period calculation (assuming all eligibility criteria are met).

The process for requesting reconsiderations of decisions and making appeals should be barrier-free

Some organizations also requested that the Government ensure the process for appealing decisions is simple, accessible, and barrier-free for persons with disabilities. Similar feedback was received during previous consultations with the disability community.

Government response

Service Canada intends to design a process in which all information and materials related to reconsiderations and appeals are available in accessible formats, including braille, large print, audio, and screen-reader compatible digital content. To further enhance accessibility, Service Canada will provide clear, plain-language instructions to guide individuals through the process and offer support via their preferred means of communication and is consulting and testing with members of disability communities. Notice of Decision letters will contain clear, step-by-step instructions on how to request a reconsideration, ensuring transparency and ease of use. As specified in the Regulations, individuals will be able to appeal reconsideration decisions to the Social Security Tribunal (the Tribunal), which is designed to streamline and simplify the appeals process. The Tribunal has a focus on plain language and services to help underrepresented individuals navigate the appeals process.

Appeals of all types of reconsiderations of decisions should be heard by the same tribunal

Some commenters suggested that appeals of any reconsiderations of decisions should be made to the same tribunal. These commenters felt that having to refer an appeal related to the Tax Court of Canada (the Tax Court), while appeals of other decisions are made to the Tribunal, makes it difficult to navigate the process.

Government response

Since decisions related to income fall under the jurisdiction of the Tax Court, it will be necessary for the Tribunal to refer those decisions to the Tax Court. However, as described in the Description section, the process for referrals to the Tax Court will be made as seamless as possible for individuals trying to navigate the system. For example, when a referral is made to the Tax Court, the Tribunal will notify the person who made the appeal and Service Canada and send the necessary documents to the Tax Court.

Limiting the use of criminal offences when imposing penalties on individuals

Some organizations were opposed to the use of criminal offences under the Regulations. These commenters noted that persons with disabilities with low incomes are often in precarious financial circumstances and, in many cases, people make mistakes because of lack of access to necessary information. One organization suggested an amendment to the Regulations to limit the available penalties to administrative monetary penalties without the possibility of criminal offences. Others argued that they should be used very rarely, if at all, and that the use of administrative monetary penalties was preferable.

Government response

The Regulations have not been amended to change the system of administrative monetary penalties and offences. Benefit programs include these provisions to deter individuals from knowingly committing fraud. However, as noted in the prepublication materials, the Regulations establish a system of administrative monetary penalties as an alternative to offences in certain situations. As well, the Regulations make it clear that monetary penalties would not be imposed in cases where someone simply made a mistake.

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).

Post Canada Gazette, Part I, publication

In its approach to Indigenous engagement, Employment and Social Development Canada respected its specific obligations under Article 32 of the Nunavut Agreement. To honour this Agreement and respect government-to-government relations from 2022 to 2024, the Government of Canada provided opportunities to the Inuit of Nunavut as represented by NTI to participate in the design and delivery of the Canada Disability Benefit, including the Regulations.

Article 32 of the Nunavut Agreement provides that the Inuit have the right, as set out in that Article, “to participate in the development of social and cultural policies, and in the design of social and cultural programs and services, including their method of delivery, within the Nunavut Settlement Area.”

Consistent with Article 32, Employment and Social Development Canada has communicated with Nunavut Tunngavik Inc (NTI) throughout the development of the Benefit, including in October 2022, December 2023, January 2024 and May 2024.

In June 2024, Employment and Social Development Canada wrote NTI to draw their attention to the proposed Regulations and to invite the participation of Inuit beneficiaries of the Nunavut Agreement. The letter also requested that NTI indicate if they intended to participate in the development of the program. Employment and Social Development Canada met with NTI in July 2024 to continue engagement efforts on the Benefit and the Regulations, in keeping with obligations under Article 32 of the Nunavut Agreement. At this meeting, NTI expressed interest in the development of the Benefit. As a result, an online link to proposed Regulations in the Canada Gazette, Part I, was sent, along with subsequent information with an update on the Benefit development.

Indigenous engagement and consultation

In fall 2022, five National Indigenous Organizations signed amendments to Engagement Protocol Agreements to support engagement on the design and implementation of the Disability Inclusion Action Plan (the Action Plan), led by Employment and Social Development Canada and the National Autism Strategy, led by the Public Health Agency of Canada. While the engagement focused broadly on the Action Plan, the Benefit is part of its Financial Security pillar. Subsequently, in January and February 2024, the Engagement Protocol Agreements of the three remaining National Indigenous Organizations were signed in support of this same work. 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, 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.

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. Discussion guides on the proposed Canada Disability Benefit Regulations were shared and partners 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. The Tłı̨chǫ Government, a modern treaty partner, requested a bilateral meeting which was held in February 2024.

In April and May 2024, after the tabling of the federal budget, modern treaty and self-government partners and National Indigenous Organizations were sent a post-budget update on the Benefit. Additionally, Employment and Social Development Canada notified modern treaty and self-government agreement partners and National Indigenous Organizations when the draft regulations were published in the Canada Gazette. The communications also offered 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.

After prepublication in the Canada Gazette, Part I

Subsequent communications in summer 2024 notified national Indigenous organizations and modern treaty and self-government agreement partners of the publication of the proposed Regulations in the Canada Gazette and invited them to provide input online. The offer to meet bilaterally with Employment and Social Development Canada officials on the proposed Regulations was again extended. No bilateral meeting requests were received. One written response was submitted.

In July 2024, national Indigenous organizations and modern treaty and self-government agreement partners were sent information on the publication of the proposed Benefit Regulations in the Canada Gazette and invited to share input via the online link provided or through bilateral discussions with Employment and Social Development Canada officials. Additionally, in August 2024, national Indigenous organizations and modern treaty and self-government agreement partners were sent a follow-up email on the Canada Gazette, Part I, publication again containing an invitation to participate via the online link provided or through bilateral meetings with departmental officials.

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 Canada Disability Benefit never becomes payable. The baseline scenario is then compared with the regulatory scenario, in which the Canada Disability 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 2025–2026 to 2034–2035. 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.

In summary, the following changes have been made since the prepublication stage, resulting in a decrease in costs of $45.9M (PV) over ten years:

The regulatory amendments are estimated to cost $479,705,204 (PV) over 10 years. These consist of costs to the Government of Canada of $261,502,966 (PV) and costs to Benefit applicants of $218,202,238 (PV). 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 2025–2026 to 2034–2035). 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. 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 estimate 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.

The following table shows the cumulative stock of working-age Disability Tax Credit certificate holders in each year of the cost-benefit analysis valuation period, in a baseline scenario where the Benefit does not exist, and in a scenario where the regulatory proposal is implemented. Note that this table does not show the annual flow of additional Disability Tax Credit applicants within each year.

Table 2: Working-age individuals with eligibility for the Disability Tax Credit with and without the Benefit
  2025–2026 2026–2027 2027–2028 2028–2029 2029–2030 2030–2031 2031–2032 2032–2033 2033–2034 2034–2035
Baseline scenario 600,000 610,000 620,000 630,000 640,000 650,000 660,000 670,000 680,000 690,000
Additional working-age Disability Tax Credit holders due to the Benefit (cumulative since Budget 2024) 210,000 280,000 350,000 420,000 420,000 420,000 420,000 410,000 410,000 410,000
Total working-age Disability Tax Credit holders 810,000 890,000 970,000 1.05M 1.06M 1.07M 1.08M 1.08M 1.09M 1.1M

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

Because the Benefit is targeted at Canadians with modest incomes, many individuals who are eligible for the Disability Tax Credit 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 2028–2029. 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
  2025–2026 2026–2027 2027–2028 2028–2029 2029–2030 2030–2031 2031–2032 2032–2033 2033–2034 2034–2035
Number of beneficiaries 465,000 515,000 560,000 610,000 615,000 620,000 625,000 630,000 635,000 640,000
Number of applicants 465,000 50,000 45,000 50,000 5,000 5,000 5,000 5,000 5,000 5,000

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

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.

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 cost-benefit analysis 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 cost-benefit analysis results.

Costs are estimated to be 361.1 million over 10 years, starting in 2025–2026.

Costs to Canadians

Canadians with disabilities may incur costs to access the Benefit. One such cost could take the form of having a Disability Tax Credit Certificate (T2201) certified by a medical 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 with disabilities 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 working-age Canadians are approved for the Disability Tax Credit on a temporary basis) were accounted for in later years, assuming, based on Canada Revenue Agency subject-matter expertise, that they will expire on average every four years. Permanent certificates do not require renewal.

Costs of filing income taxes

It is assumed, based on the Canada Revenue Agency’s Estimated T1 Filing Rates by Income Group (2020 tax year), that 10% 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 7 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 was approximately $22,600; for a single person in Iqaluit, it was 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 8 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
  2025–2026 2026–2027 2027–2028 2028–2029 2029–1030 2030–2031 2031–2032 2032–2033 2033–2034 2034–2035
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 whose incomes (not including the Benefit) are below the poverty line 220,000 240,000 265,000 285,000 290,000 290,000 295,000 295,000 300,000 300,000
Recipients whose incomes exceeded the poverty line because of the Benefit 20,000 20,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Family members of the recipients in the row above 10,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

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

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 (e.g. 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 outcomes, 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 $6,762,844 $72,719 $72,719 $8,309,010 $1,183,016
Disability Tax Credit application costs $16,054,763 $21,995,025 $27,935,287 $152,026,741 $21,645,188
Filing Income Tax and Benefit Returns costs $6,586,783 $8,711,552 $9,065,680 $57,866,487 $8,238,886
Government Administrative costs to Employment and Social Development Canada $37,066,679 $25,045,917 $24,470,486 $191,224,559 $27,226,132
Administrative costs to the Canada Revenue Agency $12,982,987 $9,867,729 $4,896,434 $58,296,312 $8,300,083
Administrative costs to the Administrative Tribunals Support Service of Canada $1,668,084 $1,705,527 $1,672,085 $11,981,696 $1,705,924
All stakeholders Total costs $81,122,141 $67,398,468 $68,112,690 $479,705,204 $68,299,229

A sensitivity analysis was undertaken by varying three of the assumptions regarding costs to Canadians: the fee required for medical professionals to complete Part B of the Disability Tax Credit form (which was varied from $125 for the main cost-benefit analysis to $150 for the sensitivity analysis), the proportion of Benefit applicants who would not otherwise file taxes (which was varied from 10% to 20%), and the fees charged by providers of non-medical professional services (which was varied from $100 to $450). These higher-bound assumptions increase the present value of costs to Canadians from $218.2 million to $339.0 million. 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 5 This number includes all working-age persons with disabilities living in poverty, including those who may not qualify for the Benefit (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 5

In its first year (2025–2026), 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 (2034–2035), 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 Regulations would not impact Canadian small businesses.

One-for-one rule

The one-for-one rule does not apply, as the 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, and 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 to address the interactions 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.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) assessment was undertaken for the 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 11 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 2028–2029. As mentioned, Budget 2024 proposed funding to assist with the cost of obtaining the medical forms required to apply for the Disability Tax Credit.

Gender

At prepublication, analysis using Disability Tax Credit administrative data seemed to indicate that working-age women with disabilities would be more positively affected by the Benefit because their individual income levels are lower. Additional analysis, based on Employment and Social Development Canada internal modelling, which accounts for income received from spouses or partners and includes persons who are likely eligible for the Disability Tax Credit, but have yet to apply for it, suggests that more Benefit recipients will be men. However, because of uncertainty in estimating the demographic characteristics of potential Disability Tax Credit applicants, it is difficult to say with certainty if one gender will disproportionately benefit.

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 5 As a result, individuals who are living alone and single parents are more likely to benefit from the Regulations because they experience higher rates of poverty.

Under the Regulations, income is defined to include all sources of money that individuals and their cohabiting 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 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 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 12 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 centre footnote 13 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 14

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. Outreach services are also offered to remote and northern communities.

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 5 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 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 15 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 15 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 15

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

Homeless populations

Research shows that 13% of persons with disabilities are among the hidden homeless (e.g. people who have to live temporarily with family, friends or elsewhere), compared to 6% of those without disabilities. footnote 16 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 17 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 Regulations come into force on May 15, 2025.

The delivery and administration of the Benefit are being 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), which includes a section to be completed by a medical practitioner and submitting it to the Canada Revenue Agency.

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, by phone through a specialized call centre and in-person at Service Canada locations. Assistance will also be available in person at Service Canada locations and at Service Canada call centres.

To facilitate the delivery and administration of the Benefit, a data exchange mechanism is being established 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 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. To respond to the life changes of individuals receiving the Benefit, Service Canada will conduct Benefit recalculations and reassessments based on Canada Revenue Agency data concerning changes in age, Disability Tax Credit status, residency, and marital status.

Service Canada’s Client Experience team has been developing the Benefit application process to design as much as possible a barrier-free experience for clients through all steps (e.g. seeking information, applying for the Benefit and receiving the Benefit).

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 June 2025 to allow for applications to be processed so that Benefit payments can begin as anticipated in July 2025.

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.

Applications

Individuals will need to apply for the Benefit through Service Canada. Multiple application channels are being developed to meet the different needs of individuals, each undergoing thorough accessibility testing. Applications are being designed to be accessible, requiring minimal information from individuals. Applications and eligibility determination letters are drafted in plain language and tested with persons with disabilities to identify barriers. Clients will be able to apply in time for the first payment of the Benefit, to be issued in July 2025.

For the benefit launch, the intention is for the application to be open to all at once and applicants to be able to apply: online, by phone, in-person, or by completing a printable application.

Service Canada will send an invitation to apply letters to potential eligible Benefit recipients based on available Canada Revenue Agency data (for example, persons who are eligible for the Disability Tax Credit who filed their taxes and are within the income threshold). This approach will be initiated by Service Canada. The letter will include instructions on how and where to apply via the various application channels along with an application code. The application code, along with the applicant’s social insurance number (SIN), will allow Service Canada to verify the identity of the individual when they apply. The individual will need to confirm that they wish to apply for the Benefit. Targeted outreach through disability communities’ networks and updates on the official website may be used to advise potential applicants about the upcoming distribution of invitation to apply letters and the associated time frame.

Clients will have the option to apply with the application code or without.

Individuals will receive their determination letter from Service Canada once the application is submitted and assessed. If deemed eligible for the Benefit, the applicant will receive payment entitlement amount information. The individual may also receive a letter that states they are ineligible with details on what would be required to become eligible (e.g. needing a valid Disability Tax Credit certificate, needing to file taxes, etc.). If eligible, the individual needs to maintain their Benefit by filing their taxes annually and keeping their Disability Tax Credit and personal information current.

The intention is for the printed application to be available both online and in Service Canada Centres. Once completed, the client will have the option to submit it by mail or in-person at a Service Canada Centre.

Service Canada is developing mechanisms, guidance and training to ensure the Benefit application and management is accessible for those requiring enhanced support. Individuals will be able to assign a supporter (such as a friend or family member) to help them apply for the Benefit, request a reconsideration of a decision, or appeal a decision without needing legal authorization. If a person wishes to speak to Service Canada to give and receive information on behalf of another person, Service Canada will require a “Consent to Communicate Information to an Authorized Person” form to be filled out or a letter known as an “authorized contact”. Authority to communicate is different than authority to legally act on behalf of an individual.

A representative must have legal authorization (e.g. must be a power of attorney, guardian, or a trustee) to receive a Benefit payment on behalf of the person.

A representative who is applying for the Benefit on behalf of someone else will have the ability to apply online or in-person. However, they will have access to support via all Service Canada support channels.

To apply for the Disability Tax Credit, individuals can complete Part A of the T2201, Disability Tax Credit Certificate online via the Canada Revenue Agency’s My Account secure portal or by phone. This means that they no longer need to print and complete the T2201 by hand and take it to their medical practitioner. Once completed, the applicant will receive a reference number to give to their medical practitioner who will use it to complete Part B of the T2201. Once the application has been submitted to the Canada Revenue Agency, its status can be tracked in the applicant’s My Account using the Progress Tracker. The traditional paper version of the T2201 continues to be available for those who are unable to, or prefer not to, complete the application online or by phone.

Some Disability Tax Credit applications are considered complex and will take longer to process. Complex requests include situations where additional information or clarification from the medical practitioner, or supporting documentation from the applicant, is required. The Canada Revenue Agency processes Disability Tax Credit applications year-round, and there is no deadline by which to submit the completed T2201 form. Once approved for the Disability Tax Credit certificate, Service Canada will have access to this data in near real time to use as part of the eligibility validation.

A legal representative of an adult may apply for the Disability Tax Credit on their behalf. A legal guardian can apply for a person under 18.

Payment

Where possible, Service Canada will issue payments via direct deposit; for clients without direct deposit information, Service Canada will issue cheques.

Measuring impact

When looking at measuring the impact of the Regulations and the Benefit overall, disaggregated data will be used to monitor the Benefit’s financial impact among diverse groups of persons with disabilities using the Canadian 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 rely primarily on the post-census Canadian Survey on Disability, the yearly Canadian Income Survey, and program administrative data.

The CDB Act required a report to be tabled in Parliament by December 22, 2024, that set out how the obligation to engage and collaborate with the disability community on the development of regulations was met. The first Canada Disability Benefit report to the House of Commons: engagement with the disability community was tabled in Parliament on December 12, 2024. 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 the Disability Tax Credit are complete and accurate.

Service standards

Service Canada is designing service standards for the delivery and administration of the Benefit, which will be implemented before the launch of the Benefit. 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).

Service Canada anticipates that the call centre service standard will align with other Service Canada call centre service standards, which is to answer 80% of calls within 10 minutes. This remains to be validated and approved once data is assessed.

Contact

Mausumi Banerjee
Executive Director
Office for Disability Issues
Email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca