If your wallet is feeling the pain right now, rest assured that you could have some cash coming your way pretty soon. The federal government’s Climate Action Incentive Payment (CAIP) for Ontario residents will be increasing in the 2023-24 year.
The CAIP is a tax-free payment distributed quarterly to Canadians to help them offset the cost of federal pollution pricing.
According to the feds, “this approach returns fuel charge proceeds to households on a more regular basis, with 8 out of 10 households getting more money back than they pay.”
Millions of Ontario residents are eligible to receive this payment and do not need to apply for it. The Canada Revenue Agency (CRA) determines who is eligible and distributes the payments accordingly.
For the 2022 year, Ontario residents are receiving a total of $373 in CAIP, plus $186 for a spouse or common-law partner, $93 per child under 19, and $186 for the first child in a single-parent family.
However, according to a news release published by the Government of Canada earlier this week, that amount will be increased to $488 per individual in Ontario in 2023-24, or $122 per quarter.
Plus, Ontarians will receive $244 for a spouse or common-law partner, $122 per child under 19, and $976 for a family of four per year.
If you’re entitled to receive the CAIP, you can expect to receive them on the 15th of every April, July, October, and January.
To qualify, you must file your annual tax return and be a resident of Ontario at the time that payments are being distributed.
You’ll also need to meet at least one of the following criteria:
- You are at least 19 years of age
- You have (or previously had) a spouse or common-law partner
- You are (or previously have been) a parent and live (or previously lived) with your child
There’s also a supplement for residents of rural and small communities, and the amounts are listed here.
The payment you receive is universal and therefore not subject to cuts based on your household’s net income.
Spend it wisely, Ontario!