TheĀ Canada Revenue Agency (CRA) is like a tax department for the Government of Canada and most provinces and territories. From July 2024, the CRA will increase several key benefits to help Canadians with the rising cost of living. The CRA changes these benefit payments annually to ensure that the money given to citizens is enough for their basic needs and matches the increased cost of living.
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4 CRA Benefits Set to Increase in August 2024
The CRA gives four main benefits to eligible people:
- Canada Child Benefit (CCB): This monthly payment is not taxed. It helps families with the cost of raising children. The Adjusted Family Net Income (AFNI), calculated and included in the tax returns, decides whether you get this benefit.
- GST/HST Credit: This tax-free payment is given every three months. It helps to balance the GST/HST paid by individuals and families with low to moderate incomes. This credit is changed yearly to match the changes in living costs and income levels.
- Advanced Canada Workers Benefit (ACWB): This tax benefit you can get back if you have a low income. It encourages people to work and provides financial help to ensure financial stability.
- Canada Carbon Rebate (CCR): Also known as the Climate Action Incentive Payment, the CCR helps lower federal pollution pricing costs.
In addition, people can choose the Home Buyers Plan, which allows first-time home buyers to take out up to $35,000 tax-free from their registered retirement savings schemes.
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Who Can Get CRA Benefits?
To get the CRA benefits, people must meet certain requirements:
- Canada Child Benefit: All Canadian families with children under 18 can get this, as the AFNI decides.
- GST/HST Credit: Whether you get this or not is automatically decided based on income tax returns. Individuals and families with low to moderate incomes can get this credit.
- Advanced Canada Workers Benefit: This is accessible to low-income workers aged 19 and up, and eligibility is determined by income and where they reside.
- Canada Carbon Rebate: This is given to residents aged 19 years or above who live in certain provinces.
Note: Make sure to file your taxes properly to make sure you can get these benefits, as the CRA automatically calculates who can get them.
How Much Will CRA Benefits Increase from July 2024?
Here is the breakdown of how much the benefits will increase from July 2024:
- Canada Child Benefit: The maximum amount you can receive for children under 6 years old will increase to $7,786.92 from $7,437.
- GST/HST Credit: The maximum amount a single person can earn in a year will increase to $519 from $496. For couples, it will increase to $680 from $650.
- Advanced Canada Workers Benefit: The maximum a single person can earn in a year will increase from $1,428 to $1,518.
- Canada Carbon Rebate: A new extra payment for people living in rural areas offers an additional 20%.
When Will CRA Benefits Be Paid?
Itās good to know when the CRA benefits will be paid. Here are the payment dates for the four CRA benefits:
CRA Benefit |
When It Will Be Paid |
---|---|
Canada Child Benefit |
19 July 2024 |
GST/HST Credit |
5 July 2024 |
Advanced Canada Workers Benefit |
12 July 2024 |
Canada Carbon Rebate |
15 July 2024 |
Other CRA perks not included in the July 2024 changes are the Disability Tax Credit and homeowner assistance programs such as the Home Buyers Plan.
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