Question Period Note: CANADA DISABILITY BENEFIT AND THE DISABILITY TAX CREDIT

What is the Government of Canada doing to ensure that the Disability Tax Credit (DTC) is not a barrier to Canadians receiving the Canada Disability Benefit (CDB)?

The Canada Disability Benefit is a key commitment to make Canada more inclusive for persons with disabilities.

The Disability Tax Credit was chosen as an eligibility criterion so that the Canada Disability Benefit could be delivered as quickly as possible and to make sure there was nationwide consistency of eligibility.

The government reaffirmed its commitment in Budget 2025 to lowering barriers to accessing the Canada Disability Benefit by helping to offset the costs of applying for a Disability Tax Credit certificate. The government proposes to provide a supplemental payment of $150 for each Disability Tax Credit certification, or re-certification, resulting in entitlement to the Canada Disability Benefit.

IF PRESSED (BUDGET 2025)

Budget 2025 proposes funding of $115.7 million over four years, beginning in 2026-27, and $10.1 million per year ongoing, for the supplemental payment of $150. These payments will be retroactive to the launch of the CDB and will start to be paid following the successful completion of a regulatory process to amend the Canada Disability Benefit Regulations.

As part of its work to review and reform the process to apply for the Disability Tax Credit, Budget 2025 also reaffirmed the government’s commitment to exploring ways to provide such a payment in respect of other Disability Tax Credit certifications.

IF PRESSED (DTC FOR CDB ELIGIBILITY)

Using the tax credit streamlines and simplifies the application process for the many working-age persons with disabilities who are already qualified for the Disability Tax Credit.

The Disability Tax Credit can provide access to many other federal programs, such as the Registered Disability Savings Plan, including the Canada Disability Savings Bond and the Canada Disability Savings Grant, and the Canada Workers Benefit disability supplement.

The Canada Disability Benefit Act came into force on June 22, 2024 and established the framework for the Canada Disability Benefit (CDB). The Canada Disability Benefit Regulations, which set out key details of the benefit including eligibility and amount, came into force on May 15, 2025. The benefit provides a maximum of $2,400 per year to low-income persons with disabilities between the ages of 18 and 64. The Government of Canada successfully launched the CDB in June 2025. Payments began in July 2025.

To be eligible for the benefit, individuals must be approved for the DTC and meet other eligibility criteria. Several types of medical practitioners can certify for the DTC, depending on the specific disability. Medical doctors and nurse practitioners can certify for all categories of disabilities while optometrists, audiologists, occupational therapists, physiotherapists, psychologists and speech-language pathologists can certify disabilities in their respective scopes of practice.

Over the past several years, the Canada Revenue Agency (CRA) has modernized the DTC application process to make it easier for persons with disabilities and medical practitioners to complete their portion of the application. Key improvements include:

Launching a fully digital application process in 2023 so that both individuals and medical practitioners can complete and submit a DTC application online.

Developing the CRA Progress Tracker, which is a tool that helps applicants monitor the status of their submissions, improving transparency and client experience.

Having DTC Navigators within each CRA tax centre to assist individuals and their representatives with complex DTC cases, acting as liaisons between applicants and the CRA.

Updating the Disability Tax Credit Certificate (Form T2201) to improve clarity and ease of use.

Expanding the list of medical practitioners eligible to certify Form T2201, making it easier for applicants to access qualified support.

These changes were informed by recommendations from the CRA’s Disability Advisory Committee and other external stakeholders, reflecting a collaborative approach to improving the DTC program.

To help offset the costs of applying for the Disability Tax Credit (DTC), Budget 2025 proposes to offset the costs of applying for the DTC by providing a supplemental payment of $150 for each DTC certification or re-certification resulting in CDB entitlement. These payments will be retroactive to the launch of the benefit and are expected to be paid to Canadians by 2026-27, following the successful completion of a regulatory process to amend the Canada Disability Benefit Regulations.

As part of its work to review and reform the process to apply for the DTC, the government also reaffirmed its commitment in Budget 2025 to exploring ways to provide such a payment in respect of other DTC certifications.

In June 2025, the Government of Canada successfully launched the new Canada Disability Benefit (CDB) to improve the financial security of working-age Canadians with disabilities. First payments began in July 2025.

People who are eligible for the Disability Tax Credit (DTC), have filed their taxes, and meet the income thresholds for the CDB are sent a letter inviting them to apply for the benefit.

The Government reaffirmed its commitment in Budget 2025 to lowering barriers to accessing the CDB by helping to offset the costs of applying for a Disability Tax Credit (DTC) certificate. The Government proposes to provide a supplemental payment of $150 to for each DTC certification, or re-certification, resulting in entitlement to the CDB.