Spring Economic Update Includes Changes to the Disability Tax Credit and other Tax Measures, but More Reform is Needed

On Tuesday, the federal government released its Spring Economic Update, and we have compiled some key proposals relevant to people with disabilities. 

Disability Tax Credit 

Changes to DTC Eligibility 

The Disability Tax Credit, currently does much more than just reduce taxes. It is the gateway to other important financial programs, like the Canada Disability Benefit (CDB), the Registered Disability Savings Plan. 

The Spring Economic Update proposes a new a streamlined application process for certain medical conditions. 

The following conditions will qualify based on diagnosis alone: 

  • Alzheimer’s disease 
  • Amyotrophic lateral sclerosis / Lou Gehrig disease
  • Angelman syndrome
  • Autism spectrum disorder, level 3
  • Bilateral blindness (legally blind)
  • Bilateral hearing loss (severe or profound)
  • Cardiac functional class of 4/IV or an ejection fraction of 20% or less
  • Cerebral palsy (severe)
  • Chronic Obstructive Pulmonary Disease, stage III or higher
  • Colostomy (permanent)
  • Cystic fibrosis
  • Dementia
  • Down syndrome / Trisomy 21
  • Duchenne muscular dystrophy (advanced or severe)
  • Edwards syndrome / Trisomy 18
  • Hemipelvectomy
  • Hemophilia A (severe)
  • Hip disarticulation
  • Huntington disease
  • Ileostomy (permanent)
  • Intellectual disability (severe, profound or IQ of 70 or below)
  • Lower limb amputation (leg or foot)
  • Microcephaly
  • Paraplegia
  • Parkinson’s disease (advanced or severe)
  • Patau syndrome / Trisomy 13
  • Phenylketonuria
  • Prader Willi syndrome
  • Profound hearing loss in one ear and severe hearing loss in the other ear
  • Progeria
  • Quadriplegia or tetraplegia
  • Relies only on lip-reading and / or use sign language to understand conversations or communicate
  • Renal (kidney) failure requiring lifelong hemodialysis or peritoneal dialysis
  • Requires lifelong continuous supplemental oxygen (O2)
  • Schizophrenia
  • Sickle cell disease (severe) requiring transfusions
  • Sign language is primary means of communicating due to profound hearing loss or expressive aphasia
  • Spinal muscular atrophy, type 1 and 2
  • Stroke (severe) no functional recovery
  • Tay-Sachs disease (infantile/juvenile)
  • Total mutism
  • Traumatic brain injury (severe)
  • Upper limb amputations (trans carpal or higher) 

This means that medical practitioners will no longer need to add descriptive text outlining an applicant’s restrictions unless the CRA asks for more medical information.   

Expanding list of Medical Practitioners: 

The update also proposed to expand the list of practitioners that can support with the application: 

  • Occupational therapists will be able to certify eliminating (using the toilet) 
  • Physiotherapists can now certify feeding and dressing
  • Speech Language Pathologists can now certify feeding or hearing
  • Podiatrists will be able to certify walking 

Streamlined Application Process for Those Under the Care of Public Guardians and Trustees 

Provincial/Territorial public guardians, trustees, and curators will be able to certify the DTC for adults under their care for property matters if they already have a document issued by a healthcare professional stating that they do not have decision-making capacity. They will not need to have the DTC recertified by the medical practitioner unless the CRA asks. 

Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada will be able to provide similar certification for adult dependants in their care under the Indian Act. 

These measures are set to apply to DTC certifications from 2027 onwards. 

Additional changes to tax measures to note: 

Home Buyer’s Plan 

Right now, people who want to purchase or build their first home, or a home for a specified disabled person, can withdraw $60,00 from an RRSP without having to pay tax on the withdrawal. 

They will have to repay the money back to the RRSP over 15 years, but the spring update proposes a 5-year grace period before the 15-year window begins. This will be in effect for anyone who withdraws until 2028. 

Labour Mobility Deduction for Tradespeople 

From the 2026 tax year onwards, tradespeople working in the construction industry will be able to claim up to $10,000 (previously $4,000) in relocation expenses if they move at least 120 km closer to their work. 

DABC welcomes the small changes, particularly in relation to the DTC application, that will reduce administrative barriers for those living with long term health conditions, and healthcare barriers for those who struggle to access supportive health services. However, we hope these changes open the door for continued conversation around more meaningful policy reform. Namely, we call on the government to reduce application barriers for all DTC applicants, to ensure financial supports like the Canada Disability Benefit more adequately address disability poverty, and to move away from application models that require people to medically prove their disability.  

The update has shown that change is possible, but this change must be centred around lived experience. 

DABC calls on the federal government to retract changes to the Interim Federal Health Program

Currently, the Interim Federal Health Program (IFHP) offers refugee claimants, protected persons, resettled refugees, victims of human trafficking, victims of family violence, detainees and others some health coverage while they await status or eligibility for other forms of coverage, including provincial or territorial health insurance. Learn more about eligibility and what IFHP covers at Canada.ca.

The Federal government recently announced that effective May 1st, 2026, people covered by IFHP will be required to pay a $4 co-payment for prescription medications and a 30% co-payment for supplemental health services, including mental health care, dental and vision services, rehabilitation, and essential medical supplies.

The Canadian Medical Association (CMA) has written a letter to the Minister of Immigration, Refugees and Citizenship expressing concerns about these new co-payments. DABC strongly supports this letter and share CMA’s concerns.

We would like to add and emphasize the following:

  • Many refugees or asylum seekers are people with disabilities who enter the country after fleeing from war or persecution and may face high essential healthcare or mental health care costs.
  • At DABC and our national affiliate organization DAC, we support many individuals with disabilities who struggle to afford healthcare when they have several other urgent needs.
  • If people cannot afford their healthcare, they are more likely to delay accessing necessary healthcare until they have no other choice. This further worsens health outcomes for refugees and places an unfair administrative burden on healthcare workers.

We have seen how policy adjustments that negatively affect people with disabilities can cause generational impacts, deepen disability poverty, and create greater societal inequities. We echo CMA in urging the government to reconsider these changes and to work collaboratively with those impacted by any changes to IFHP, including patients and healthcare providers.

Open letter to Association of Vancouver Island and Coastal Communities (AVICC) Delegates

The Association of Vancouver Island and Coastal Communities (AVICC)‘s 2026 AGM and Convention takes place from April 24th-April 26th, and representatives from DABC’s Accessible Organizations Project will be in attendance.

AVICC represents local governments on Vancouver Island, qathet, the Sunshine Coast, Central Coast and North Coast.

In an open letter, DABC and three other organizations have asked delegates of the AGM and Convention to support AVICC resolution R19 Wheelchairs and Mobility Scooters in Bike-and-Roll Mobility Lanes and Routes.

Download the open letter or read the text below.


April 21, 2026

Dear Association of Vancouver Island and Coastal Communities (AVICC) Delegates:

Re: Please support AVICC resolution R19 Wheelchairs and Mobility Scooters in Bike-and-Roll Mobility Lanes and Routes

BC’s Motor Vehicle legislation presently inhibits the ability of seniors and people with disabilities to be active, independent, and engaged and creates a legal grey area regarding the use of wheelchairs and 3 & 4 wheel mobility scooters on bike lanes and routes.

We urge you to speak and vote in favor of the motion advanced by the City of Victoria that: “the UBCM advocate that provincial Motor Vehicle legislation and regulations be updated to allow the use of wheelchairs and 3&4 wheel mobility scooters on bike lanes and traffic calmed bike routes across BC.” This update would add choice for wheelchair and mobility scooter users, their right to use sidewalks and other pedestrian facilities would be maintained.

Electric drive technology has advanced in recent years, and many people in BC already use wheelchairs and (3 & 4 wheel) mobility scooters that can travel faster than is safe on even wide and well-maintained sidewalks. Mobility scooters and wheelchairs with top speeds of 15 km/hr to 25 km/hr (the legislated maximum) are now commonly available.

Some people with disabilities already use mobility scooters on the networks of bike and roll routes that municipalities have created. And BC’s human rights legislation requires that public infrastructure be accessible to people with disabilities. However, travel training programs need legislative certainty to be able to teach how to safely use this convenient, sustainable, and relatively affordable form of transportation.

Wheelchairs and 3 & 4 wheel mobility scooters have been used on bike and roll routes legally and safely for decades in other jurisdictions, including the state of Oregon. Quebec’s regulations allowing wheelchairs and mobility scooters on bike and roll routes and low-speed streets are already in place and can provide a potential model for BC to follow.

Please support this important advocacy motion. In addition, please consider proposing that your municipality and/or regional district write directly to Mike Farnworth, Minister of Transportation and Transit, advocating for this important change.

Council of Senior Citizens Organizations of BC (COSCO), Disability Alliance BC, HUB Cycling, and BC Cycling Coalition

coscobc.org    disabilityalliancebc.org    bikehub.ca    bccycling.ca