The federal government will kick off 2024 by issuing the first carbon pricing rebate, officially known as the Climate Action Incentive payment, to eligible Canadians starting this Monday. Here’s a breakdown of what you can expect and how much you could receive.
Who’s Eligible?
Residents in provinces subject to the federal carbon tax, namely Alberta, Ontario, Manitoba, Saskatchewan, New Brunswick, P.E.I, Nova Scotia, and Newfoundland and Labrador, are eligible to receive the rebate.
However, residents in British Columbia, Quebec, and the Northwest Territories, which do not participate in the federal carbon pollution pricing system, are excluded from receiving the rebate.
How to Receive the Rebate
Eligible Canadians in the participating provinces will automatically receive the rebate through direct deposit or by cheque. To qualify, individuals must have filed their income tax and benefit returns.
Supplement for Small and Rural Communities
The federal carbon pricing plan includes a 10 per cent supplement for residents in small and rural communities, applied beyond the base payment. Prime Minister Justin Trudeau announced an increase of this supplement to 20 per cent in April 2024, recognizing the higher energy needs and limited access to cleaner transportation options in these areas.
Rebate Amounts Based on Household Size
The rebate amount varies depending on the size of the household. A family of four can expect the following pollution price rebate amounts:
- $386 in Alberta
- $264 in Manitoba
- $184 in New Brunswick
- $328 in Newfoundland and Labrador
- $248 in Nova Scotia
- $244 in Ontario
- $240 in Prince Edward Island
- $340 in Saskatchewan
Individuals in New Brunswick will receive $92, and two-person households with a spouse or common-law partner will get $46, or $23 per child under 19.
In Alberta, an individual can receive $193, a spouse or common-law partner $96.50 and $48.25 per child under 19.
In Manitoba, it’s $132 for an individual, $66 for a spouse or common-law partner and $33 per child under 19.
In Ontario, an individual can expect $122, a spouse or common-law partner $61 and $30.50 per child under 19.
In Saskatchewan, it’s $170 for an individual, $85 for a spouse or common-law partner and $42.50 per child under 19.
In Newfoundland, an individual can expect $164, a spouse or common-law partner $82 and $41 per child under 19.
In Nova Scotia, it’s $124 for an individual, $62 for a spouse or common-law partner and $31 per child under 19.
In Prince Edward Island, an individual is slated to receive $120, while a spouse or common-law partner can anticipate $60, with an additional $30 allocated per child under 19.
The Environment and Climate Change Canada (ECCC) clarifies that all residents of P.E.I are classified as living in a small and rural community. Consequently, the amounts disbursed in the region will incorporate the 10 per cent rural supplement.
Ottawa’s Intent and Climate Goals
Ottawa states that the rebate is designed to offset the cost of federal pollution pricing and aligns with the federal government’s commitment to reducing emissions by 40 per cent by 2030, with the ultimate goal of achieving net-zero emissions by 2050.
Impact on Low and Middle-Income Households
The Environment and Climate Change Canada (ECCC) notes that low and middle-income households will benefit the most from these rebates. Approximately eight out of ten households are expected to receive more money back through the payment than they typically pay due to the federal pollution pricing system.
Proceeds Allocation
Ninety per cent of the direct proceeds from Ottawa’s fuel charge are directed to individuals and families through pollution price rebates, issued every three months. The remaining 10 per cent is allocated to emissions-intensive, trade-exposed, small and medium-sized enterprises, and Indigenous groups.
The carbon pricing rebate is not only seen as a financial offset for Canadians but is an integral part of Canada’s strategy to combat climate change. As the government aims to reduce emissions, the rebate serves both as a support mechanism for everyday affordability challenges and an incentive for individuals and businesses to contribute to a sustainable future.
