Canadian News

Cost of Living Relief Act, No. 2 Becomes Law

The Cost of Living Relief Act, No. 2 has been passed into law. For Canadians who need it most, this legislation delivers two important affordability measures — the Canada Dental Benefit and a one-time top-up to the Canada Housing Benefit.

Canada Dental Benefit

This benefit will provide eligible parents or guardians with up to $650 tax-free per year for two years to cover dental expenses for children under 12. This benefit, which will support an estimated 500,000 children, is available to families without access to private dental insurance and with an adjusted family net income under $90,000.

The Canada Revenue Agency (CRA) will begin receiving applications and processing payments for the benefit starting December 1, 2022.

Canada Housing Benefit

This benefit will provide a tax-free payment of $500 to an estimated 1.8 million low-income renters who are struggling with the cost of housing. This one-time top-up is available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for single Canadians, who pay at least 30 per cent of their adjusted net income towards rent.

The CRA will begin receiving applications and processing payments for this top-up starting December 12, 2022.

These new measures are part of the Federal Government’s Affordability Plan, a suite of measures totaling $12.1 billion in new support in 2022 to help make life more affordable for millions of Canadians.

Click here to read the Affordability Plan.

Image by JOSEPH SHOHMELIAN from Pixabay

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