CRA Benefit Increases: Everything You Need to Know for July 2024

The rising cost of living in Canada has made it increasingly challenging for many families to manage their finances. In response, the Canadian government, through the Canada Revenue Agency (CRA), is set to increase several key benefits starting in July 2024.

These increases aim to provide additional financial support for families, low-income earners, and residents in rural areas.

In this article, we will explore the details of these four CRA benefits that will see an increase, helping you understand how these changes can positively impact your financial situation.

These 4 CRA Benefits Will Be Paid at Increased Amounts in July 2024

Starting in July 2024, four important CRA benefits will be increased to provide better financial support. These benefits include the Canada Child Benefit (CCB), the GST/HST Credit, the Advanced Canada Workers Benefit (ACWB), and the Canada Carbon Rebate (CCR).

Each of these benefits targets different groups, ensuring broad support across various demographics.

Canada Child Benefit (CCB): More Support for Raising Children

The Canada Child Benefit (CCB) is a tax-free monthly payment designed to assist families with the costs of raising children. From July 2024, the CCB will see a notable increase in its maximum annual benefit.

Increased Maximum Benefit: The maximum annual benefit for children under six years old will rise to $7,786.92, up from $7,437, providing an additional $349.92 per year to help cover child-rearing expenses.
Eligibility: All Canadian families with children under the age of 18 are eligible. The benefit amount is determined based on the adjusted family net income (AFNI) from the previous tax year.
Payment Schedule: The first payment with the increased amount will be issued on July 19th, 2024. Subsequent payments will continue monthly, typically around the 20th of each month.
Application Process: New residents to Canada can apply for the CCB online through the CRA’s My Account or by mail using Form RC66, Canada Child Benefits Application.

This increase in the CCB is intended to provide more substantial support to families, helping to alleviate the financial pressures associated with raising children.

GST/HST Credit: Lowering the Tax Burden on Everyday Purchases

The GST/HST Credit is a tax-free quarterly payment aimed at offsetting the impact of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on low- and middle-income individuals and families.

Increased Maximum Credit: Starting in July 2024, the maximum annual credit will increase for both single individuals and couples. Single individuals will see their maximum credit rise to $519 from $496, while couples will experience an increase to $680 from $650.
Eligibility: Eligibility for the GST/HST Credit is automatically determined by the CRA based on the income reported in your tax return. Individuals and families with low to moderate incomes are likely to qualify.
Payment Schedule: The first quarterly payment with the increased credit amount will be issued on July 5th, 2024, and will continue quarterly thereafter.

This increase in the GST/HST Credit is designed to reduce the tax burden on everyday purchases, making essentials like groceries and clothing more affordable for low- and middle-income Canadians.

CRA Benefit Increases: Everything You Need to Know for July 2024

Advanced Canada Workers Benefit (ACWB): A Boost for Low-Income Earners

The Advanced Canada Workers Benefit (ACWB) is a refundable tax credit that provides financial assistance to low-income working individuals and families. This benefit is intended to support essential expenses and promote financial stability.

Increased Annual Benefit: In July 2024, the annual benefit amount for single individuals will increase to $1,518 from the previous maximum of $1,428. This boost aims to provide greater support for essential living expenses.
Eligibility: The ACWB targets low-income workers aged 19 years or older. Eligibility and benefit amounts are based on income level and residency status in Canada.
Payment Schedule: The first quarterly payment with the increased amount will be distributed on July 12th, 2024, with subsequent payments continuing quarterly.

By increasing the ACWB, the government aims to provide additional financial support to low-income workers, encouraging continued employment and financial independence.

Canada Carbon Rebate (CCR): Helping with Carbon Pricing Costs

The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment (CAIP), helps offset costs associated with the federal carbon pricing plan, which aims to reduce greenhouse gas emissions.

New Rural Supplement: Starting in July 2024, the CCR will include a new rural supplement. This supplement provides an additional 20% on top of the regular CCR amount for eligible residents in rural areas, recognizing the unique challenges faced by these communities.
Eligibility: The CCR is available to residents of specific provinces where the federal carbon pricing plan applies. Eligible recipients must be 19 years of age or older.
Payment Schedule: The first quarterly payment with the new rural supplement will be issued on July 15th, 2024, with subsequent payments continuing quarterly.

The introduction of the rural supplement to the CCR is aimed at easing the financial burden of carbon pricing on rural residents, ensuring they receive adequate support.

Important Reminders

To ensure you receive these increased benefits, it is crucial to file your income tax return on time. The CRA automatically calculates eligibility and benefit amounts based on the information provided in your tax return.

Staying informed and keeping your information updated with the CRA is essential for maximizing the financial support available to you.

Additional Support Programs

While not directly impacted by the July 2024 increases, several other CRA programs provide additional financial assistance:

Disability Tax Credit (DTC): Helps eligible individuals with disabilities and their supporting family members reduce the amount of income tax owed.
Home Buyer Programs: Including the First-Time Home Buyer’s Savings Account (FHSA) and the Home Buyers’ Plan (HBP), which offer financial support for purchasing a home.
GST/HST New Housing Rebate: Offers a partial refund of the GST or HST paid on the construction or purchase of a newly built home.

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Conclusion

The CRA’s increased benefits in July 2024 aim to provide much-needed financial support to Canadians facing rising living costs. By targeting families with children, low-income earners, and residents in rural areas, these benefits help to ease financial burdens and promote greater financial stability.

Remember to file your income tax return on time and stay informed about the various support programs available to maximize the benefits you receive.