Carbon Rebate payments will be sent out across Canada on Wednesday. However, with Conservative Leader Pierre Poilievre threatening to “axe the tax” if elected, the future of the payouts is doubtful.
Canadians will earn anywhere from $95 to $225 every quarter from the carbon price refund, with most Ontarians receiving at least $140 per quarter, up from $122 last year due to a rebate increase in April 2024.
The rebate is paid out in deposits every three months as a direct reimbursement for the Liberal government’s carbon levy, which has two components and is frequently referred to as a “carbon tax” by the opposition Conservatives. The proposal comprises a price mechanism for carbon-emitting heavy industries, as well as a fuel fee for gasoline and home heating.
Here’s everything you should know about the program and whether you qualify.
Carbon Tax Rebate: Overview
According to the Canada Revenue Agency, the credit is intended to help individuals and families cover the additional costs resulting from the federal government’s environmental pricing. In an assessment of the program, the parliamentary budget officer discovered in July 2023 that most Canadians in 2021 received more from the Canada Carbon Rebate (CCR) than they paid in carbon levies. However, a more comprehensive examination by the budget watchdog revealed that the carbon pricing mechanism and rebate will result in a “net loss” for Canadians in the coming years.
Another recent investigation by the parliamentary budget officer, published on October 10, concluded that the industrial carbon price was more successful in reducing greenhouse gas emissions than the consumer price.
The Chiefs of Ontario and the Attawapiskat First Nation have requested a judicial review of the carbon price in November 2023, citing concerns about the pricing scheme’s unequal impact.
In late October 2023, the government made amendments to the carbon pricing system, tripling the top-up to the rebate for rural Canadians and temporarily suspending the fuel price for heating oil.
In Ontario, the carbon price program is operated by the federal government, which returns 90% of the earnings to qualifying citizens.
The CCR has received attention not only for its rebranding, which the government implemented in an attempt to make its difficult climate policy more appealing but also for its opposition from provincial leaders. Saskatchewan Premier Scott Moe stated in February that his province would not submit the money owed for the carbon pricing on natural gas, prompting the federal government to threaten not to pay the refund to Saskatchewan people.
Several premiers across the country, including Ontario Premier Doug Ford, have urged Prime Minister Justin Trudeau to postpone the carbon price hike on April 1. Trudeau did not comply, accusing conservative premiers of “(making) political hay” from the carbon pricing and challenging them to offer an alternative approach to cut emissions.
In April 2024, Jagmeet Singh reversed his position on the consumer share of the carbon fee, highlighting the need for climate policy aimed at “big polluters.”
Pierre Poilievre and his Conservative party, which has a clear lead in the polls ahead of an expected spring election if the Liberal Party elects a new leader, have long opposed the carbon fee.
Eligibility Criteria
Residents of Alberta, Saskatchewan, Manitoba, and Ontario were initially eligible for the program, which was expanded in July 2023 to include Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and New Brunswick.
To qualify, you must be a resident of a CCR-eligible province on the first day of the payment month. You must also be at least 19 years old. If you are under that age, you must either have (or have previously had) a spouse or common-law partner or be (or have previously been) a parent who lives (or has previously lived) with their child.
Carbon Tax Rebate Credit Amount
Ontarians who qualify for the refund will receive a standard rebate of $140, with an additional $70 for a second adult in the family and $35 for each child under 19. The federal government estimates that a family of four in Ontario will get $280.
The payouts are general and not based on income level. Here’s how it breaks down by province, individual, and quarter:
- Alberta: $225.
- Manitoba: $150.
- New Brunswick: $95.
- Newfoundland and Labrador: $149.
- Nova Scotia: $103.
- Ontario: $140.
- Prince Edward Island: $110.
- Saskatchewan: $188.
The CCR also contains a 20% extra increase for residents of small and rural communities, which covers all eligible P.E.I. citizens, according to the government. However, several rural villages have expressed concern about the laws separating rural towns, claiming that the government has unfairly lumped them in with nearby metropolis.
In addition, recipients can expect quarterly payouts in April, July, and October of this year.
Carbon Tax Payment: How To Apply?
Eligible CCR beneficiaries should get the credit automatically, in the form of a check or direct transfer, without having to apply. Canadians who submit their taxes electronically before March 15 should get their payments oevery quarter according to the government’s website. Those who file later should expect to receive their CCR payments six to eight weeks after their tax returns are assessed.
If you have a spouse or common-law partner, the person whose tax return was assessed first will receive the entire credit for the family. The total amount of the rebate will be the same regardless of who receives it.
People with tax debt will see the credit deducted from the amount owed.
According to the Canada Revenue Agency, receiving a CCR payment can take up to ten business days.
