The Government of Canada and the majority of its provinces and territories utilise the Canada Revenue Agency (CRA) as a kind of tax department. To assist Canadians in coping with the growing expense of living, the CRA will raise several important benefits starting in July 2024. Every year, the CRA modifies these benefit payments to make sure that the amount provided to residents covers both their necessities and the rising cost of living.
4 CRA Benefits Set to Increase in August 2024
Eligible individuals receive four primary benefits from the CRA:
- The Canada Child Benefit (CCB) is a non-taxable monthly payout. It assists families with the expenses of raising kids. This benefit is determined by your Adjusted Family Net Income (AFNI), which is computed and reported on your tax returns.
- Every three months, the GST/HST Credit is provided to taxpayers at no cost. It assists in balancing the GST/HST paid by low- to moderate-income individuals and families. Every year, this credit is adjusted to reflect shifts in the cost of living and income distribution.
- Progression The Canada Workers Benefit (ACWB) is a tax benefit that is payable to low-income individuals. To guarantee financial security, it both stimulates employment and offers financial assistance.
- The Canada Carbon Rebate (CCR), often called the Climate Action Incentive Payment, is a government program that lowers the cost of federal pollution pricing.
Who Can Get CRA Benefits?
People must fulfil specific requirements to be eligible for CRA benefits:
- Canada Child Benefit: Children under the age of eighteen are eligible for the Canada Child Benefit, which is determined by the AFNI.
- GST/HST Credit: Based on your income tax returns, this credit is automatically determined for you. This credit is available to people and families with low to moderate incomes.
- Advanced Canada Workers Benefit: The Advanced Canada Workers Benefit is available to low-income workers who are 19 years of age or older. Their eligibility is based on their income and place of residence.
- Canada Carbon Rebate: Residents who live in specific provinces and are 19 years of age or older are eligible for the Canada Carbon Rebate.
How Much Will CRA Benefits Increase?
The following summarizes the percentage increase in benefits starting in July 2024:
- Canada Child Benefit: From $7,437 to $7,786.92, that is the maximum amount you can get for children under the age of six.
- GST/HST Credit: The annual maximum income for an individual will rise from $496 to $519. It will rise from $650 to $680 for couples.
- Advanced Canada Workers Benefit: The annual maximum earnings for an individual will rise from $1,428 to $1,518.
- Canada Carbon Rebate: An additional 20% is available as a new bonus payment for residents of rural areas.