Last Updated On 3 June 2024, 9:50 AM EDT (Toronto Time)

CRA Benefits for Newcomers to Canada: A strong social safety net, which includes a range of financial benefits managed by the Canada Revenue Agency (CRA), is one of the many things that draw people to Canada.

For newcomers, establishing financial security and a smooth integration into Canadian society depends on their knowledge of these advantages.

This article attempts to give you the information you need to know about all the monetary benefits of CRA and optimize your financial well-being in Canada, whether you’re a newcomer or thinking about moving here.

What is CRA?

For most provinces and territories as well as the federal government, the Canada Revenue Agency (CRA) is in charge of enforcing tax rules.

It also supervises a number of social and economic advantages as well as incentive schemes offered by the tax system.

The CRA is an essential point of contact for immigrants to obtain a number of financial advantages that can make the adjustment to Canadian life easier.

Who is considered a newcomer to Canada by the CRA?

CRA considers an individual or family a newcomer to Canada for the first time in which they become a resident of Canada.

Newcomers to Canada can be permanent residents, including people who have received “approval-in-principle” from the IRCC, refugees (protected persons), or temporary residents, including workers, students, or temporary resident permit holders.

Key Monetary CRA Benefits For Newcomers To Canada

1. Canada Child Benefit (CCB)

To help with the expense of raising children under the age of 18, qualified families receive a tax-free monthly payment known as the Canada Child Benefit (CCB).

The CCB can help newcomers with kids feel much less financially burdened.

Eligibility:

You have to fulfil the following requirements in order to be qualified for the CCB:

The child must be under eighteen years old
you or your spouse/common-law partner must be a Canadian citizen, a permanent resident, a protected person, or
- a temporary resident who has lived in Canada for the previous eighteen months and has a valid permit in the 19th month, and you must reside in Canada.

Procedures for Applications

Applying for Canada Child Benefits (CCB) requires newcomers to:

Complete the RC66 form and present documentation of their immigration status.
Submit the application online through My CRA Account, by mailing the application, or by using a licensed service provider.

How much CCB can you get and when?

Your household net income and the number of children you have will determine how much CCB you get.

CRA recalculates CCB every July based on the adjusted family net income (AFNI) from the previous year.

As of now, the maximum yearly payment is $7,437 per year ($619.75 per month) for each child under six and $7,437 per year ($619.75 per month) for each child six to seventeen, if your AFNI is under $34,863 annually.

CCB is usually paid on the 20th of every month. However, if the date falls on a weekend, CRA will make the payment on Fridays before that specific weekend.

2. GST/HST Credit

A tax-free quarterly payment known as the GST/HST credit assists people and families with low and modest incomes defray all or some of the harmonized sales tax (HST) or goods and services tax (GST) that they pay.

Newcomers with children now need to use Form RC151 upon arrival in Canada to apply for the GST/HST credit and the Canada Carbon Rebate (CCR).

Eligibility

You have to satisfy one of the following requirements and be a resident of Canada for income tax purposes in order to be qualified for the GST/HST credit.

You are 19 years of age or older and a resident of Canada for income tax purposes during the month before and during the month that GST/HST payment is made.
If you are under 19, then either you have (or had) a spouse or common-law partner or you are (or were) a parent and live (or lived) with your child.

Procedures for Applications

Newcomers need to fill out the RC151 form (GST/HST Credit Application for Individuals Who Become Residents of Canada).

How much GST/HST credit can you get and when?

Your marital status and family net income will determine the amount you receive.

A couple having two children might get a quarterly GST/HST credit of up to $992, while a single person without children could get up to $496 from July 2023 to June 2024.

The CRA usually sends the HST/GST payments on the 5th day of July, October, January, and April, but if the date falls on a weekend, then payment is made on Friday prior to that particular weekend.

3. Canada Workers Benefit (CWB)

Refundable tax credit The Canada Workers Benefit (CWB) is designed to boost low-income workers’ incomes to promote employment.

Eligibility

You are a resident of Canada throughout the year
You are 19 or older on December 31, or you live with your spouse your common-law partner or your child
For the ongoing payment schedule, you are eligible for CWB if you are currently working and your net income is less than the income mentioned below:

How do I claim CWB?

You do not need to apply to receive the CWB payments. When you file your income tax and benefit return, the CRA determines your eligibility.

How much CWB payment can you get and when?

If you qualify for a CWB amount, the CRA will automatically send you quarterly payments on the 15th of every month or on a Friday if the 15th falls on a weekend.

A single individual can get up to a maximum of $1,428 split in 4 payments if their adjusted annual net income is $23,495 or less.

This amount reduces as income increases and no CWB payment is made if annual net income is more than $33,015.

Similarly, a family can get up to a maximum of $2,461 split in 4 payments if their annual net income is $26,805 or less. No CWB is paid if income is higher than $43,212.

4. Provincial Benefits

Apart from the federal incentives, newcomers to Canada ought to look into the advantages of each province and territory.

Programs and services to support residents are available in every province and territory, and these can include extra benefits for children, health benefits, and housing help.

Common provincial benefits are:

Ontario Trillium Benefit (OTB) combines the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and Northern Ontario Energy Credit.
Alberta Child and Family Benefit (ACFB), which gives lower-income families with children financial assistance.
B.C. Family Benefits comprise the Affordable Child Care Benefit and the BC Child Opportunity Benefit.

Tips to Maximize Your Gains

Although juggling the many benefits can be intimidating, following these tips will help you make the most of the financial assistance that is offered to you:

Submit Your Tax Return: Accessing most CRA services requires filing an annual tax return. By completing your taxes, the CRA can determine if you qualify for any number of benefits, even if you have no income.

Obtain Your Social Insurance Number (SIN): Working in Canada and making use of government services and perks require your SIN. Immediately after you land in Canada, apply for your SIN.

Keep Your Information Updated: To prevent benefit delays, be sure the CRA has your current address and banking details.

Get Expert Assistance: If you’re not sure how to file for benefits or need help with your tax return, consider using settlement services for newcomers or a qualified tax expert.

Stay Updated: Benefits and policies of the government are subject to change; thus, be aware of any changes or new initiatives that might be launched. By routinely visiting the CRA website or signing up for CRA alerts, you can stay informed.

Canada provides a thorough range of financial incentives intended to help immigrants adjust to their new surroundings.

Gaining knowledge of and access to these advantages can have a big impact on your general health and financial security.

Utilizing benefits such as the Canada Workers Benefit, GST/HST Credit, and Canada Child Benefit can guarantee that you and your family have the financial stability required to prosper in Canada.

Recall that the secret to optimizing your benefits is to be knowledgeable, file your taxes, and maintain current information with the CRA.

Using these techniques, you can confidently and securely negotiate the financial terrain of your new house.

To a bright and successful future in your new nation, welcome to Canada!

Tax Scams

Be cautious of tax frauds/scams as they are quite common in Canada especially messages or calls reaching out to newcomers posing as CRA personnel.

Be cautious if an individual who claims to be from the CRA contacts you and requests personal information, such as your SIN, credit card number, bank account number, or passport number.

Scammers may attempt to reach you via email, instant messaging, mail, or phone.

CRA will never request that you pay fees using prepaid credit cards, gift cards, or any other similar service.

Neither will CRA personnel use any aggressive language that threatens to harm, imprison, or deport you.

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Gagandeep Kaur Sekhon

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.