Ontarians to receive latest quarterly climate payment from feds

Millions of Ontarians can expect to see some extra cash in their bank accounts over the next few days.

A quarterly carbon tax rebate is being sent out by the Trudeau government in provinces that don’t have their own carbon pricing program — and for an average family of four in Ontario it means a payment of $186.25.

The payment is the next installment of the Climate Action Incentive Payment (CAIP), a tax-free rebate to offset the cost of the federal carbon price initiative. The payment is automatically deposited into the bank accounts of eligible residents.

The rebate, issued on Oct. 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.

Given that the 15th lands on a Saturday this month, payments may arrive in an individual’s bank account as soon as Friday.

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 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 was received in July and included 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.

With files from The Canadian Press