Canada Disability Benefit split into two parts: a base 'allocation' and a new $150 'supplemental amount'

Plain-language summary · AI-assisted · not legal advice

The Canada Disability Benefit has been restructured so that what was previously called simply 'the benefit' is now called the 'allocation,' and a separate new component called the 'supplemental amount' of $150 has been added. The supplemental amount is available to beneficiaries who obtain a new or additional Disability Tax Credit certificate after they begin receiving the allocation, provided their DTC eligibility at the time of payment is based on that certificate; it is paid as a lump sum. The income-reduction calculation now explicitly treats beneficiaries whose spouse/partner filing requirement has been waived the same as single beneficiaries. A new rule allows applications to be submitted up to six months before an applicant turns 18, with the application deemed received on their 18th birthday. The interest rules on overpayments and penalties have been clarified: no interest accrues on ordinary erroneous payments or overpayments, and interest on penalty-related debts is paused while a reconsideration, judicial review, or appeal is available or pending. Past benefit payments are deemed to be 'allocations' for the purposes of eligibility for the supplemental amount.

Who this affects: Canadians with disabilities receiving or applying for the Canada Disability Benefit · Applicants approaching age 18 who are DTC-eligible · Beneficiaries who obtain a new or additional Disability Tax Credit certificate · Beneficiaries subject to penalties or overpayment recovery · Estates or heirs of deceased beneficiaries