The company which employing disable people will receive tax deductions benefits.

The new Canada Disability Benefit will receive $6.1 billion of funding over six years beginning in fiscal year 2024–25, and $1.4 billion ongoing, the federal budget proposed Tuesday.

The Canada Disability Benefit Act received royal assent last year and will come into force this June, with payments to eligible Canadians commencing in July 2025 after the measure completes the regulatory process, the budget said.

“This benefit fills a gap in the federal government social safety net between the Canada Child Benefit and the Old Age Security for persons with disabilities and is intended to supplement, not replace, existing provincial and territorial income support measures,” Budget 2024 said.

Under the proposal, an estimated 600,000 people with disabilities between ages 18 and 64 will benefit from the program, up to a maximum annual benefit of $2,400. Applicants will claim the benefit through annual tax filings, and it will be distributed through the Canada Revenue Agency.

Eligibility for the benefit will be determined with the existing Disability Tax Credit certificate. The government proposed an additional $243 million over six years and $41 million ongoing to help cover the cost of medical forms required to apply for the certificate.

“The federal government is making this investment due to the inadequacy of disability assistance provided by many provinces,” the budget said. The government also called on provinces and territories to exempt Canada Disability Benefit payments from counting as income in relation to provincial or territorial supports to prevent clawbacks.