Starting July 28, eligible Canadians will receive their first automatic advance payments from the newly enhanced Canada Workers Benefit (CWB) courtesy of the Canada Revenue Agency (CRA). As part of the government’s commitment to supporting hardworking Canadians, these advance payments are being provided to ease financial burdens for up to 4.2 million individuals.
Recipients who received the Canada Workers Benefit in 2022 will automatically receive these funds as a top-up to their income without needing to submit a separate application. The enhanced CWB, introduced in 2021, extended eligibility to an additional million workers, aiming to support more individuals and families across the country.
Deputy Prime Minister and Minister of Finance, Chrystia Freelance, emphasized the significance of the CWB, stating that it uplifts the income of hardworking Canadians, ensuring that no one working full-time struggles to meet essential needs such as food and housing.
Eligible single workers can receive up to $1,518, while eligible families can receive up to $2,616 through the Canada Workers Benefit.
The advance payments are made possible through Bill C-47, which incorporates various commitments from the 2023 federal budget. Unlike previous years where recipients had to wait until tax filing season to receive the benefit, the advance payments are being issued in three installments – July 2023, October 2023, and January 2024 – with a final payment after filing the 2023 tax return.
To qualify for the benefit, recipients must have a working income below the net income threshold designated for their province, be a Canadian resident throughout the year, and be 19 years of age or older on December 31 or living with a spouse, common-law partner, or child. The net income level ranges from $33,015 to $58,932, depending on factors such as the province or territory of residence, the number of children, and marital status.
The advance payments are designed to provide immediate financial relief for eligible workers. For instance, an individual earning $25,000 annually who received $1,200 through the Canada Workers Benefit in 2022 will now receive quarterly advance payments of $200, followed by a final payment of $600 after filing their 2023 taxes in early 2024.
This enhanced benefit complements other measures aimed at alleviating inflation-related pressures, including reduced child care costs, the Canada Child Benefit, the Canada Dental Benefit, the Grocery Rebate, the Pollution Pricing Rebate, and tax relief through the increased Basic Personal Amount.
The deposited payments are calculated based on the income reported in the previous year’s tax return and will be adjusted for inflation to keep up with the rising cost of living. The government’s commitment to supporting Canadian workers remains steadfast, with these initiatives providing much-needed financial assistance to those who qualify.