Personal Finance

SK, MB, ON, NB - How Climate Action Incentive Payments will work on your 2018 Tax Return

  • Last Updated:
  • Mar 26th, 2019 11:35 am
[OP]
Deal Fanatic
Nov 24, 2013
6142 posts
2897 upvotes
Kingston, ON

SK, MB, ON, NB - How Climate Action Incentive Payments will work on your 2018 Tax Return

The federal government unveiled details today (Oct 23, 2018) on how the carbon tax rebates (officially "Climate Action Incentive Payments") will work for the provinces falling under the federal backstop on carbon pricing. Because BC, AB, QC, PE, NS, and NL have or will have their own carbon pricing systems in place, residents of those provinces will not receive federal rebates.

https://www.canada.ca/en/environment-cl ... -work.html

Because this plan was designed to accommodate provincial authority to design their own carbon pricing systems, the rebates Canadians are entitled to will be determined by their province of tax residence. The carbon tax collected within each province will vary (due to factors like coal-generated electricity, industry, etc.), so the per capita funds returned to residents will also vary.

Saskatchewan
https://www.canada.ca/en/environment-cl ... hewan.html
-Under the proposed approach, individuals in Saskatchewan will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return starting in early 2019. Climate Action Incentive payments in Saskatchewan will be calculated as follows for 2019:

$305 for a single adult or the first adult in a couple.
$152 for the second adult in a couple. Single parents will receive this amount for their first child.
$76 for each child in the family (starting with the second child for single parents). Under this proposal, a Saskatchewan family of four will receive $609 in 2019. The average household in Saskatchewan will receive $598, taking into account the various family sizes and circumstances.

Manitoba
https://www.canada.ca/en/environment-cl ... itoba.html
Under the proposed approach, individuals in Manitoba will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return, starting in early 2019. Climate Action Incentive payments in Manitoba will be calculated as follows for 2019:

$170 for a single adult or the first adult in a couple.
$85 for the second adult in a couple. Single parents will receive this amount for their first child.
$42 for each child in the family (starting with the second child for single parents).

Ontario
https://www.canada.ca/en/environment-cl ... tario.html
Under the proposed approach, individuals in Ontario will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return starting in early 2019. Climate Action Incentive payments in Ontario will be calculated as follows for 2019:

$154 for a single adult or the first adult in a couple.
$77 for the second adult in a couple. Single parents will receive this amount for their first child.
$38 for each child in the family (starting with the second child for single parents).

New Brunswick
https://www.canada.ca/en/environment-cl ... swick.html
Under the proposed approach, individuals in New Brunswick will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return starting in early 2019. Climate Action Incentive payments in New Brunswick will be calculated as follows for 2019:

$128 for a single adult or the first adult in a couple.
$64 for the second adult in a couple. Single parents will receive this amount for their first child.
$32 for each child in the family (starting with the second child for single parents).

File your tax returns
For all affected provinces, the incentive payments will be determined by filing your 2018 tax return (due Apr 30, 2019).

Rates to increase over time
Each provincial page has an estimate of how the incentive payments will increase as the carbon price increases from $20/tonne in 2019 to $50/tonne by 2022.

Rural Residents - 10% Extra
To further support small and rural community residents in [all 4 affected provinces], the Government proposes to provide a supplementary Climate Action Incentive amount for people who live in small and rural communities, in recognition of their increased energy needs and reduced access to energy-efficient transportation options. This supplement will be an additional 10 per cent of the payment amount to which they are entitled. Small and rural communities will be defined as anywhere outside of a census metropolitan area, as defined by Statistics Canada
10% bump is for rural residents outside a CMA. Many Canadians living just outside of large cities, however, still fall within that city's CMA, so eligibility will vary. Maps available here:
https://www12.statcan.gc.ca/census-rece ... ex-eng.cfm
33 replies
Member
Jul 25, 2008
400 posts
274 upvotes
ottawa
anyone know why the payouts in Saskatchewan are so much higher? Higher fuel use per capita I guess?
Last edited by danishh on Oct 23rd, 2018 1:52 pm, edited 1 time in total.
[OP]
Deal Fanatic
Nov 24, 2013
6142 posts
2897 upvotes
Kingston, ON
I'd prefer this thread to stay on the personal finance implications; there's another forum for political ramifications.

Pricing carbon creates a market-based incentive to reduce one's carbon emissions; buying a more fuel-efficient vehicle, driving or idling less, quicker payback on insulating better or buying high-efficiency products, etc. The per capita rebate returns funds collected. Whether you're paying in more or less than what you're getting back depends on personal choices made.
Deal Expert
User avatar
Oct 26, 2003
34190 posts
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Winnipeg
Slicktoxic wrote: Climate change is a major concern. We need to act now. Reductions in greenhouse gas emissions needed asap.

But this payoff scheme is such BS. How does receiving a handout qualify as an "Incentive" payment?

Liberals need to toke up more to make sense of it all.
indeed, i would rather the feds implement a consistent and less administrative intensive process, something like making EV tax free at point of purchase would be such an example.
Deal Expert
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Oct 26, 2003
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Winnipeg
danishh wrote: anyone know why the payouts in Manitoba are so much higher? Higher fuel use per capita I guess?
crappier public transit compared to southern Ontario, also colder. No incentive for EV, therefore we have less ways to reduce carbon than you do. I think that reasoning is also applied to rural areas, hence the 10% extra.

keep in mind this will only apply for the 2018 tax return, as the next government will reverse it.
Member
Jul 25, 2008
400 posts
274 upvotes
ottawa
divx wrote: crappier public transit compared to southern Ontario, also colder. No incentive for EV, therefore we have less ways to reduce carbon than you do. I think that reasoning is also applied to rural areas, hence the 10% extra.

keep in mind this will only apply for the 2018 tax return, as the next government will reverse it.
That should have said Saskatchewan.
[OP]
Deal Fanatic
Nov 24, 2013
6142 posts
2897 upvotes
Kingston, ON
danishh wrote: anyone know why the payouts in Manitoba are so much higher? Higher fuel use per capita I guess?
Higher per capita carbon emissions, as best I can tell.

Image

In a polluter-pay model, large emitters tend to wag the dog, as we see from the oil & gas industry in AB and SK. MB does have a lot of large-scale commercial farming, so that and personal home heating in cold winters probably plays into it. Ontario has farming and manufacturing too, but also a lot more city-dwellers to drive per-capita figures down. MB's electric grid is even cleaner than ON's (mostly Hydro).
Deal Expert
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Oct 26, 2003
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Winnipeg
danishh wrote: That should have said Saskatchewan.
and my response would have stayed the same.
Jr. Member
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Dec 6, 2009
151 posts
40 upvotes
OP, you are, of course, correct. This thread should stick to personal finance implications. I deleted my earlier post.

I apologize for my earlier political rant.

With respect to personal finance implications, according to the government's own backgrounder: "Households will receive a Climate Action Incentive, which will give most families more than they pay under the new system." https://pm.gc.ca/eng/news/2018/10/23/go ... -pollution

I am highly suspicious... in my view the personal finance benefit for individuals and families will not materialize as presented. This is the federal government we are talking about - no matter which end of the spectrum they are on such similar claims have a history of being highly dubious. Saying that we will receive more than what we pay? Really? This is nothing more than political appeasement to buy votes in certain provin ... oops, there I go again on the ranting.

As divx alluded, a less administrative intensive process would have been more appropriate to streamline effort and best reflect the desired efficiencies.
Sr. Member
Jan 23, 2009
715 posts
520 upvotes
Ontario
income tested? and thanks op for the info
[OP]
Deal Fanatic
Nov 24, 2013
6142 posts
2897 upvotes
Kingston, ON
agit wrote: income tested? and thanks op for the info
The Alberta rebate system is income-tested, so I expected this would be too, but nope. The numbers above are the numbers, period; they're only concerned about # of adults and # of children in household. Makes it easy to administer in that sense as people are already filing their taxes single, common law, or married, and claiming kids if they have them (for CCB).
Deal Fanatic
Feb 9, 2009
9333 posts
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The scam tax has arrived
Deal Addict
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Sep 23, 2009
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This is cute.

The government is telling us that they will charge less in taxes than they hand out per person.

I am sure that this will always be the case.

Can't wait until they cut the subsidies back to people and somehow we are left with a new tax.

Just like how we have the Ontario Health Premium. It's not a tax guys. It's Climate Action Incentive payments inflows to the government. That's not a tax.
Deal Addict
User avatar
Mar 9, 2012
3242 posts
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Kitchener
I really don't see how this will all be 'revenue' neutral -- well, in fact, pro-taxpayer.

Also, I prefer if it had been a monthly payment, rather than on your taxes. Sure, nice to get a couple hundred extra bucks in March or April or whenever it is you do your taxes (or simply you'll owe less, such as self-employed taxpayers). However, people are creatures of habits, and that extra chunk of cash won't be helping with the cost of fuel for homes/cars/etc. It'll get spent on a 'want' rather than a need. Giving a monthly payment, even if it's only $12.83/month (for a single adult), that will go to energy costs.
How can we fly like eagles, when we're governed by Turkeys?

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