Changes to the final regulations for the Canada Disability Benefit
Today, the final regulations for the Canada Disability Benefit (CDB) were published in Part II of the Canada Gazette. There were no major changes from the proposed regulations in Part I: the maximum benefit amount remains $2,400 a year, and the Disability Tax Credit (DTC) is still required in order to qualify for the CDB.
The publication also responded to feedback, including suggestions to increase the benefit amount and offer alternatives to the DTC as eligibility criteria. It explained the reasons why these changes were not implemented.
Click here to read the finalized regulations in Part II of the Canada Gazette.
Below is an overview of all the changes from the initial proposed regulations in Part I of the Canada Gazette, to the final regulations posted today in Part II of the Canada Gazette.
Change to coming into force: The regulations were amended to provide for a new coming-into-force date of May 15th, 2025.
New spousal/partner tax filing requirement added to eligibility criteria: both the person applying for the benefit and their cohabiting spouse or common-law partner to have filed their Income Tax and Benefit Return for the tax year that ended before the payment period starts in order to be eligible for the CDB in a payment period. Exemptions can be made under exceptional circumstances.
Technical changes to the formula for calculating reductions based on income: technical changes were made regarding benefit amount reductions based on income. These changes will make it easier to calculate reductions and will not affect the benefit amount. These include:
The definition of “adjusted income” (specifically as it relates to the portion of an individual’s income that is not working income) was amended to simplify how reductions to the benefit amount are calculated.
The definition of “working income” was also revised to more accurately reflect the way working income will be calculated by Service Canada.
The formula for calculating the reduction was revised to take the beneficiary’s adjusted income and subtract either their working income or the maximum value of the working income exemption for the payment period, whichever is less.
Changes retroactive payments: the regulations were changed to ensure that individuals are eligible for a retroactive payment for up to 24 months, regardless of whether they are eligible for the CDB in the month they apply.
Removal of reference to the Humanitarian Designated Classes Regulations (HDCR): the reference to the HDCR was removed from the eligibility criteria for the CDB.
Requirement for reapplication for persons released from incarceration: the regulations were amended to require people who are released from incarceration to reapply for Benefit payments. This also means that a person no longer needs to inform Service Canada about the date that they are released.
Changes to increase consistency in the timing of payments for individuals who are incarcerated: the regulations were amended to ensure that individuals who are incarcerated:
are eligible for the CDB for the month in which they are released,
that turn 18 during their first month of incarceration are eligible for the CDB that month in the same way as other individuals are during their first month of incarceration, and
that are released from incarceration in June 2025 are eligible for the CDB for that month.
Change to the tax filing requirement for individuals younger than 18 years and six months: the exception to the requirement to file an Income Tax and Benefit Return for individuals who are younger than 18 years and six months at the end of the tax year was removed. As a result, these individuals will be required to file an Income Tax and Benefit Return to be eligible for the CDB.
New time limits on how long individuals can request suspension of payments: a new two-year limit was added to the length of time an individual can request to suspend their CDB payments.
Wording change from Incapacity to Representatives: changed the heading “Incapacity” to “Representatives” to use less stigmatizing language, as suggested by stakeholders.
Change to allow Service Canada to make benefit payments only to representatives who have legal authorization: removed provisions that would have allowed the Minister to make CDB payments to a third-party representative with whom they had entered into an agreement rather than to the CDB recipient. CDB payments may only be directed to someone’s authorized legal representative in situations where such a person has already been appointed in accordance with federal, provincial, or territorial law.
An authorized legal representative is only needed to receive CDB payments on behalf of someone else. If an individual can manage their CDB payments but needs support to apply for the CDB, request a reconsideration of a decision, or appeal a decision, this representative does not need to be a legal representative.
Change to clarify the types of decisions that can be reconsidered: the language in the regulations was revised to clarify that a reconsideration can be requested for decisions related to ineligibility for the CDB or for the benefit amount that an individual has received or will receive.
Change to clarify when the Minister may issue an administrative monetary penalty: the regulations were amended to specify that the Minister must base their opinion that a person has committed a violation on documents or information collected or obtained by them.
Miscellaneous minor changes: various minor changes were made to the regulations to increase consistency between the English and French versions and improve readability. For example, some definitions were moved to place them closer to the implicated provisions.
