In November 2024, the Canadian government implemented financial assistance programs conceived to help low-income families struggling with the burden of economically challenging times. These programs cover a package of benefits that may come together to provide eligible families up to $928 or more each month. In this article, we intend to discuss these programs, their eligibility criteria, application process, and frequently asked questions to help families access these opportunities as best as they can.
Overview of Financial Assistance Programs
Assistance for low-income families is available from the Canadian government through several programs, including the Canada Child Benefit (CCB), Canada Workers Benefit (CWB), Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit, and Canada Housing Benefit (CHB). When coupled together, these programs can offer good monthly support to eligible families.
Canada Child Benefit (CCB)
What is the CCB?
Deriving its name from the Canada Child Benefit, the same would help families meet the costs of bringing up a child under the age of 18. The monthly amount is not taxable in Canada and varies with the number of children and family net income.
Benefit Amounts
For the period July 2024 to June 2025, the benefit amount is up to $7,437 per year for children under age 6 and up to $6,275 per year for children 6 to 17 years of age.
Eligibility Criteria
Eligibility is determined by considering whether the applicant is a Canadian resident for tax purposes, with children under the age of 18, and that an income tax return has been filed annually. The amount of the benefit is reduced when the adjusted family net income is over approximately $32,797.
Canada Workers Benefit (CWB)
This is a refundable tax credit that assists low-income workers with supplementary income and encourages them to participate actively in the workforce.
Benefit Amounts
Eligible individuals may receive, up to, $1,518 per year, while families may receive, up to, $2,616 per year.
Eligibility Criteria
To be eligible for CWB, applicants must be Canadian residents for tax purposes, must have earned income of above $3,000, and must have adjusted family net income below certain thresholds (such as $26,748 in the case of individuals and $32,244 in the case of families). The benefit amount reduces on an incremental basis as income increases above the threshold.
GST/HST Credit
A quarterly payment made to individuals and families of low and modest income that is not subject to taxation in Canada. This payment helps subsidize some of the GST or HST they pay.
Benefit Amounts
For the benefit year from July 2024 to June 2025, eligible individuals can receive up to $519 per year; legally married or common-law partners can receive up to a maximum of $680 per year; and an additional $179 per child under 19 years.
Eligibility Criteria
Eligibility for this benefit is based on being a Canadian resident for income tax purposes and the filing of one income tax return annually. The income thresholds vary according to family size and composition.
Abbreviation of Canada’s Housing Benefit:
The Canada Housing Benefit is a component of the national welfare programs that helps low-income households in paying their rented houses. It is the financial assistance given by both the federal government and provincial or territorial governments “co-delivery”.
Benefit Amounts
Each province or territory specifies the amount. It is affected positively or negatively by these factors namely – those income figures via households; local costs of housing; and family size.
Eligibility Criteria
Eligibility criteria would differ in the regions concerned, but it often comprises being a Canadian citizen, a household earning below a specific income around a threshold, and spending a large part on rent. Specific locations should inform potential beneficiaries through consultations with the relevant provincial or territorial housing authority.
Application Process
Almost all benefits are calculated from annual income tax returns. An applicant should take care that his or her tax returns are filed accurately and timely because, without doing these, one becomes ineligible.
Automatic Enrollment
Some benefits like CCB and GST/HST may, however, require a separate application under some programs. Some of these benefits are automatically assessed when returns are filed.
Application for Specific Benefits
For benefit application, the applicant is in most cases going to bring some identification proofs, income proofs, or required documents, fill the application forms either through CRA (Canada Revenue Agency) or applicable provincial portal, and follow the instructions to complete the online submission or post submission of the applications.
Disbursement of Payments
Monthly payments are paid from the Canada Child Benefit in most cases, namely, 20th day of each month. The Canada Workers Benefit can be accessed as a lump sum or in advances. The GST-HST credit pays quarterly. Varies either by province or territory for that of the Canada Housing Benefit.