People will see a bigger benefit cheque next month in Ontario

Eligible Ontario residents might find an increase to a rebate cheque next month.

The federal government is set to increase the carbon tax on April 1, which many people may notice at the gas station and on energy bills.

But at the same time, the Canada Carbon Rebate amounts are also increasing next month for Ontario residents.

The Canada Carbon Rebate (previously known as the Climate Action Incentive Payment) returns fuel charge proceeds to Canadians through direct deposit or cheque, every three months, ensuring most households get more money back, with lower-income households benefiting the most, according to a press release from the Canadian government.

Starting this April the rebates are increasing in many provinces including Ontario.

Previously a family of four received $976 annually or $244 for each payment for 2023/24.

The payment for the 2024/25 year will be $1,120 or $280 quarterly for a family of four.

In addition, through legislative amendments in Bill C-59, rural residents will get a top-up to 20 per cent in recognition of rural Canadians’ higher energy needs and more limited access to cleaner transportation options, the release stated.

The idea behind carbon pricing is to reduce emissions while still getting funds back to residents who need it.

“That’s why every three months, we are delivering hundreds of dollars back to families through the Canada Carbon Rebate—which gives eight out of 10 families more back than they pay—while ensuring big polluters pay their fair share,” said Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance.

The next Canada Carbon Rebate cheque or direct deposit is April 15 but only if  you file your taxes electronically by March 15.

Those who file their taxes later will still get the payment, if they are eligible, but it will come six to eight weeks after their tax return has been assessed.

The carbon rebate is just one of the federal and provincial benefits, for more information on other benefits, see this story. 

For more information on the Canada Carbon Rebate, see the federal website here.