ottawa –
The Liberal Party plans to introduce legislation that would exempt Canada Disability Benefits from being treated as income for income tax purposes.
The autumn economic statement released on Monday also called on states and territories to ensure recipients of the program do not have other benefits reduced as a result.
“The Government stands ready to monitor state and territory decisions and take steps to ensure federal benefits are not withdrawn,” the Autumn Economic Statement said.
The disability benefits are scheduled to go into effect in July, and eligible individuals will receive up to $200 per month.
Advocates have criticized the amount as too low, while others have raised concerns that it could lead to cuts in state and territory benefits if the benefits are considered taxable income. There is.
Amanda McKenzie, director of external affairs at Dimes Canada’s March, said the Canadian government’s tax-free plan is welcome news.
“Frankly, this makes it easier for localities to make the right decisions,” she says.
She also said this was a signal to communities that the government intended to work with people with disabilities to achieve the “fullest value” of the benefit.
But she says the amount people receive through this benefit is not enough.
“This is a start. I’m not going to say it’s a good start,” McKenzie said. “People with disabilities continue to ask for that amount to increase.”
This report by The Canadian Press was first published Dec. 17, 2024.
