This is How Much New Brunswick Residents Will Receive in ‘Carbon Tax’ Payments Starting October 2023

Starting July 1, 2023, the federal pollution pricing fuel charge will be implemented in New Brunswick.

This follows the province’s request earlier this year to replace its own fuel charge with the federal backstop.

Ottawa says the direct proceeds from the federal fuel charge are returned to the jurisdiction where they were collected, and 90% of the proceeds from the federal fuel charge in New Brunswick will be returned to residents through quarterly Climate Action Incentive payments.

 

According to the federal government, most households in New Brunswick and other provinces where Canadians receive CAI payments will receive more than they pay as a result of the federal carbon pollution pricing system, with low- and middle-income households benefitting the most.

The remaining 10% will be used to support small- and medium-sized businesses and Indigenous groups in the province.

Eligible individuals and families residing in small and rural communities in New Brunswick will receive a 10% rural supplement recognizing their increased energy needs and reduced access to cleaner transportation options.

New Brunswick residents will receive two CAI payments in 2023-24, with the first double payment in October 2023 and the second single payment in January 2024.

Afterward, they will receive four regular quarterly payments for 2024-25, beginning in April 2024.

Residents outside of the Census Metropolitan Areas of Fredericton, Moncton, and Saint John will be eligible for the 10% additional rural supplement.

Eligible single adults in New Brunswick will receive a quarterly payment of $92. A family of four will receive a total of $184 quarterly ($368 in October).

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Credit: Canada.ca

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Credit: Canada.ca

In comparison, eligible single adults in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will receive a quarterly payment of $164, $124,and $120, respectively, starting in July. Families in rural and small communities are eligible to receive an extra 10 per cent.

The payment is not subject to a reduction based on net family income. Eligible residents do not have to apply for CAI payments, as they will be paid automatically by CRA based on their tax return. To receive their CAI payments, residents will need to file their annual tax return.

Who & When – Climate Action Incentive (CAI) payment:

Who: Those who have filed income taxes and are residents of New Brunswick on the first day of the payment month are eligible, provided they were tax residents in the month prior to the payment is paid and who meet at least one of the following conditions during the same period:

  • You are 19 years of age or older
  • You have (or previously had) a spouse or common-law partner
  • You are (or previously were) a parent and live (or previously lived) with your child under 19 years of age who is registered for the Canada child benefit

When: Residents of New Brunswick will receive two CAI payments in 2023-24: a double payment in October 2023 to return the projected proceeds from the July to September 2023 and October to December 2023 periods, and a single payment in January 2024 to return the projected proceeds from January to March 2024.

In April 2024, New Brunswick residents will receive the first of four regular quarterly payments for 2024-25.

How:

Those who have signed up for direct deposits from the Canada Revenue Agency will see these payments in their bank accounts as “Climate Action Incentive.” For those not registered for direct deposit, cheques will be mailed out.

Those who have not received payments should only contact the CRA if they have not received it within ten working days of the expected payment date.

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