Most Ontarians to receive climate payment from federal government

Toronto.Citynews.ca
July 18, 2022
Michael Ranger

Millions of Ontarians can expect to get some extra cash from the federal government on Friday.

The first round of the Climate Action Incentive Payment (CAIP), a tax-free rebate to offset the cost of the federal carbon price initiative, will be automatically deposited for eligible residents.

The payments issued on July 15 will go to individuals in Ontario, Alberta, Saskatchewan, and Manitoba, who are at least 19 years of age. Other provinces have the funds directed back to the provincial government.

The climate action incentive was previously a refundable tax credit claimed annually on income tax returns, but the payment will now be automatically issued four times a year as the federal government seeks to make the payments more visible.

The success of that effort may be limited, however, since many Canadians saw the deposit unclearly labelled in their online accounts, including as “federal payment,” “Canada Fed” and “EFT Credit Canada.” Some on social media queried what the payments were for as others shared the various ways they were labelled depending on which financial institution you bank with.

“Mine showed up as ‘Direct Deposit Federal Payment CANADA,'” tweeted Lori Hausauer of Alberta. “I like that Canada was all caps. Just in case I forget where I live, I guess.”

That confusion was even evident as Trudeau visited a family in a planned photo op in an Ottawa suburb Friday afternoon.

Reza Matin, a father of two and software test developer, welcomed Trudeau to his home, and when asked by the prime minister if they received their payment, Matin said he got notice of a deposit for $372.50 but stumbled over who the payment came from.

“It said it was from...” he said, pausing.

Trudeau filled in the answer, saying it said it was from the federal government, and then Matin agreed.

The amount of the payment is based on a person’s family situation. Eligible Ontarians can expect to receive an annual credit of $373, plus $186 for a spouse or common-law partner, and $93 for each child under 19. A annual rebate of $186 will be issued for the first child of a single-parent family.

People who reside in select rural areas will receive 10 per cent more.

Quarterly rebates will be issued going forward on the 15th of April, July, October, and January. The first installment received this month will include a retroactive amount for April 2022.

An individual must have filed their income tax and benefit return to be eligible to receive the rebate, and the amount they receive will be determined based on their filed return. The government says the credit will be automatically applied to any amounts owing to the Canada Revenue Agency.

The government says to contact them if a payment has not been received within 10 business days.