Yesterday, November 4th, 2025, the federal government announced Budget 2025. The budget contains several items that pertain to people with disabilities and people living on low incomes. We’ve listed them below. DABC will issue a statement with our thoughts on the budget in the near future.

Read the full budget here: https://budget.canada.ca/2025/home-accueil-en.html.

Have questions? Email taxaid@dabc.ca or call 236-477-1717  for questions specifically relating to tax measures, and email dtc@dabc.ca  or call 604-923-8136 for all other questions.

Delivering Automatic Federal Benefits for Low-Income Individuals

• Automatic Federal Benefits for the 2026 tax year. These individuals will be able to review and confirm a pre-filled income tax return, and the Canada Revenue Agency (CRA) will automatically file these individuals’ taxes to ensure they receive government benefits they qualify for—including benefits that these Canadians may not be aware they are entitled to.
• To help individuals with lower incomes receive the benefits to which they are entitled, Budget 2025 also proposes to amend the Income Tax Act to allow the CRA to file a tax return on behalf of certain eligible individuals with lower incomes in simple tax situations who do not owe tax and do not file themselves.

Protecting Against Economic Abuse in Financial Institutions

• Budget 2025 proposes to introduce a voluntary Code of Conduct for the Prevention of Economic Abuse for federally regulated banks. This code, to be overseen by the Financial Consumer Agency of Canada, will set clear expectations for how banks can identify, prevent, and respond to economic abuse to better protect Canadians.

Personal Support Workers Tax Credit

• Budget 2025 proposes to introduce a temporary Personal Support Workers Tax Credit, under which eligible personal support workers employed in the remaining provinces and territories could claim a refundable tax credit equal to 5 per cent of their eligible earnings, providing support of up to $1,100 per year.

Lowering Barriers to Access the Canada Disability Benefit

• Budget 2025 proposes funding of $115.7 million over four years, beginning in 2026-27, and $10.1 million per year ongoing, for a one-time supplemental Canada Disability Benefit payment of $150 in respect of each Disability Tax Credit certification, or re-certification, giving rise to a Canada Disability Benefit entitlement. This one-time payment would be retroactive to the launch of the Canada Disability Benefit. Following successful completion of the regulatory process, the first supplemental payments are expected to be made to Canada Disability Benefit recipients before the end of 2026-27.
• In addition, the government is committed to looking at ways to provide such a payment in respect of other Disability Tax Credit certifications as part of its work to review and reform the process to apply for the credit.
• Budget 2025 confirms the government’s intention to bring forward legislation to exempt the Canada Disability Benefit from being treated as income under the Income Tax Act.

Top-Up Tax Credit

The rate applied to most non-refundable tax credits is based on the first marginal personal income tax rate. In very rare cases where an individual’s non-refundable tax credit amounts exceed the first income tax bracket threshold ($57,375 in 2025), the decrease in the value of these credits may exceed their tax savings from the rate reduction.  To ensure that no one in this circumstance has their tax liability increased by the middle-class tax cut, and to help Canadians transition to the lower credit rate, Budget 2025 proposes to introduce a new non-refundable Top-Up Tax Credit. The credit would effectively maintain the current 15-per-cent rate for non-refundable tax credits claimed on amounts in excess of the first income tax bracket threshold.

Qualified Investments for Registered Plans

Budget 2025 proposes the following amendments to simplify, streamline, and harmonize the qualified investment rules for Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Savings Accounts (TFSAs), Registered Education Savings Plans (RESPs), Registered Disability Savings Plans (RDSPs), First Home Savings Accounts (FHSAs), and Deferred Profit Sharing Plans (DPSPs).

As of January 1, 2027,

• RDSPs would be permitted to acquire shares of specified small business corporations, venture capital corporations, and specified cooperative corporations
• Shares of eligible corporations and interests in small business investment limited partnerships and small business investment trusts would no longer be qualified investments.

Home Accessibility Tax Credit

At present, if the eligibility criteria for both credits are met, taxpayers can claim both HATC and Medical Expense credits in respect of the same expense. Budget 2025 proposes to amend the Income Tax Act such that an expense claimed under the Medical Expense Tax Credit cannot also be claimed under the Home Accessibility Tax Credit. This measure would apply to the 2026 and subsequent taxation years.

Canada Carbon Rebate

With the removal of the federal fuel charge as of April 1, 2025, the government provided a final quarterly CCR payment starting in April 2025 to eligible households. To support the winding down of mechanisms to return fuel charge proceeds, Budget 2025 proposes to amend the Income Tax Act to provide that no CCR payments would be made in respect of tax returns, or adjustment requests, filed after October 30, 2026.

After years of anticipation, the Canada Disability Benefit (CDB) was finally made available in July 2025. The benefit was initially proposed as a means to lift people with disabilities out of poverty. Despite significant organizing from advocates across the country, however, there remain issues around the new legislation and its rollout. Here is a look at our thoughts on the CDB so far, and how to prepare to apply for it.  

The Canada Disability Benefit remains too little for too few  

The CDB offers up to $200/month for up to $2400 a year to recipients of the Disability Tax Credit (DTC) that qualify under restrictive income thresholds. Single individuals, for example, qualify for the full amount if their income falls below $23,000, with a working exemption of $10,000. The benefit gradually reduces until their income rises above $45,000. For more information on income thresholds and to find out how much you might receive, visit the federal government’s benefit estimator. 

But while these thresholds were set in place to ensure that the benefit goes to those who need it most, many people who struggle financially are not able to access the payment. Because the income exemption applies only to working income, many people with rental or investment income who still struggle to meet their basic needs are left out of the benefit. As income is measured by taxes that have already been filed, those who have experienced significant income changes in 2025 must wait until after the next tax season to qualify for financial support they may need now.  

Some people with disabilities who qualified are still missing their first payment. 

There were also complications around initial CDB payments. The government originally miscalculated working income, which left people who qualified early for the benefit with incorrect payment amounts. Service Canada acted swiftly and has already contacted those affected. However, these technical difficulties have caused payment delays that many cannot afford. We have heard from a few clients who are still waiting for their first payment amounts to be readjusted and returned to them.  

With the CDB in effect, Albertans with disabilities face more pressure to apply for the Disability Tax Credit  

Depending on where you live, applying for the CDB has been especially daunting. One of the central concerns around the CDB has been around how the benefit interacts with existing provincial and territorial disability programs. Most provinces and territories announced that CDB payments would not affect income or disability assistance payments; Alberta is currently the only province to claw-back CDB payments from disability assistance (AISH) payments.  

This summer, the Alberta government asked AISH recipients to provide updates on their DTC application status by September 5 or risk a reduction of their disability payments. This measure caused many people who rely on AISH to engage in a difficult, and at times, costly application process without the promise of additional money in their pockets. The Alberta government has agreed to fund medical costs related to applying, but it remains unclear how they will reimburse applicants.  

What to do to prepare 

While the CDB still has some kinks to work out, it is still the first benefit of its kind—a way for the federal government to provide some needed financial relief to people with disabilities facing exorbitant costs of living.  

If you are looking to apply, we recommend making sure you’re as prepared as possible:  

How to apply:  

• Step 1: Apply for the DTC. For in-depth guides and a tool to help you speak with your medical practitioner, visit our online app, My DTC: mydtc.dabc.ca (ENG), monciph.dabc.ca (FR) 

• If you’re living in Alberta, make sure you inform the government of your DTC status by filling out this questionnaire. 

• Step 2: Make sure your taxes are up to date.  

• Step 3: Apply for the Canada Disability Benefit online, by phone, in person, or by mail. For in-depth guides, frequently asked questions, timeline and next steps, visit canadadisabilitybenefit.ca 

To keep up to date on information about the CDB, visit Plan Institute’s website: canadadisabilitybenefit.ca. 

The Access RDSP Partnership can help you every step of the way 

If you need assistance with any step of the application process, or need help to appeal a decision, contact our Access RDSP Partnership. Services are available within BC and across Canada. 

Last year, DABC launched our updated online Disability Tax Credit (DTC) tool, called “My DTC”, to help people get the DTC process started. It has info on benefits, eligibility, and the overall process, as well as some tools to help with applying.  

Check it out here: https://mydtc.dabc.ca/ 

My DTC now has a French language version! Check it out here: https://monciph.dabc.ca/

The French language version of the app was developed in partnership with Finautonome.

The DTC is a non-refundable tax credit that reduces the amount of income tax you owe. The credit can go back up to 10 years, and unused credit amounts can be transferred to eligible caregivers. Even if you don’t pay income tax, the DTC may be worth applying for because it acts as a gateway to other benefits or financial programs, like the Registered Disability Savings Plan (RDSP),  Canada Disability Benefit, Canada Workers Benefit Disability Supplement, Child Disability Benefit, and more. 

Note that My DTC does not allow you to apply for the Disability Tax Credit directly. That’s done through the Canada Revenue Agency. But we hope you’ll still find it useful to help gather all the information needed to apply. 

Need further assistance? 

• BC Residents: Contact Access DTC at dtc@dabc.ca or 604-923-8136 

• Residents of all other provinces: Contact Disability Alliance Canada at dtc@disabilityalliancecanada.ca or (604) 606-4160 

• Reach out to our Access RDSP partners at Plan Institute and BC Aboriginal Network on Disability Society (BCANDS): https://www.rdsp.com/access-rdsp/