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Ontario Government Exempts Disability Benefit as Income

  • The Ontario government announced on Tuesday it will exempt the federal Canada Disability Benefit from being counted as income for social assistance recipients.
  • This decision responds to disability advocates' calls to prevent clawbacks of provincial assistance triggered by the new federal benefit starting in July 2025.
  • The Canada Disability Benefit provides up to $200 monthly to low-income, working-age Canadians with disabilities, and Ontario also increased the earnings exemption to $1,000 a month.
  • Minister Michael Parsa emphasized the importance of protecting the province’s most vulnerable populations, while disability advocates praised the initiative for helping maintain cost-of-living support.
  • Ontario continues to urge the federal government to revise the Income Tax Act to expand access to the benefit and improve income supports to more adequately meet living costs amid ongoing economic challenges.
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aodaalliance.org broke the news in on Tuesday, May 27, 2025.
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