Key Takeaways
- The Government of Canada is providing a one-time payment of $500 to older seniors who are eligible for the Old Age Security (OAS) pension in June 2021 and were born on or before June 30, 1947.
- The payment will be issued automatically the week of August 16, 2021, and will not affect other income-tested benefits such as the Guaranteed Income Supplement (GIS) or the Allowance.
- The payment is part of the government’s plan to increase the OAS pension by 10% for seniors aged 75 and over beginning in July 2022, which will provide an extra $766 to full pensioners over the first year.
- The government also offers other housing benefits and programs for seniors, such as the Canada Housing Benefit, the GST/HST new housing rebate, the Home Buyers’ Plan, and the Canada Greener Homes Initiative.
What is the $500 one-time payment for Seniors?
The Government of Canada is providing financial support to older seniors who face higher expenses and lower incomes as they age. The one-time payment of $500 is a taxable benefit that will be given to seniors who meet the following eligibility criteria:
- You were born on or before June 30, 1947, and
- You were eligible for the Old Age Security (OAS) pension in June 2021
If you have applied for the OAS pension but have not yet been approved, you will receive the one-time payment for older seniors if you are approved retroactively to June 2021 or earlier.
You do not have to apply for the payment. If you are eligible, you will automatically receive it by direct deposit or cheque, depending on how you receive your OAS pension. The payment will be issued the week of August 16, 2021⁴.
The payment will not affect your Guaranteed Income Supplement (GIS) benefit or the Allowance benefit for your spouse. However, it is a taxable benefit, and you will need to declare it when you file your income tax and benefit return. Service Canada will send you the required tax slip⁴.
Why is the Government Providing this Payment?
The one-time payment for older seniors is part of the government’s plan to strengthen seniors’ financial security and help them cope with the rising cost of living. The payment will provide immediate support before the OAS pension is increased by 10% for seniors aged 75 and over beginning in July 2022.
The 10% increase will provide an extra $766 to full pensioners over the first year and will be the first permanent increase to the OAS pension since 1973, other than adjustments due to inflation. The increase will benefit 3.3 million seniors who are eligible for the OAS pension in June 2021, 56% of whom are women.
The government estimates that the one-time payment and the OAS increase will lift 100,000 seniors out of poverty and reduce the number of seniors living in severe housing need by 20%.
What Other Housing Benefits are Available for Seniors?
The government also offers other housing benefits and programs for seniors, such as:
- The Canada Housing Benefit, is a rental subsidy that provides up to $2,500 per year to low-income households and vulnerable persons who pay more than 30% of their income on rent. The benefit is delivered by provinces and territories and is expected to help 300,000 households across Canada by 2028.
- The GST/HST new housing rebate, which allows you to recover part of the GST or HST paid for a new or renovated home that is your primary residence. The rebate amount depends on the purchase price or cost of renovations, and the province or territory where you live.
- The Home Buyers’ Plan, which allows you to withdraw up to $35,000 from your registered retirement savings plan (RRSP) to buy or build a qualified home. You have up to 15 years to repay the amount to your RRSP.
- The Canada Greener Homes Initiative provides grants of up to $5,000 and expert advice to help you make your home more energy-efficient and reduce your energy bills. You can apply for the initiative if you own a single or semi-detached house, a rowhouse, a townhouse, a mobile home, or a mixed-use building with up to three units.
IMPORTANT LINKS:
- What Expenses Can You Deduct from Your Rental Income? (Updated 2024)
- How to Get Your EITC Refund Faster in 2024
- CPP, RRSP, TFSA, FHSA, AMT and OAS Changes: What You Need to Know for 2024
- What Happens to Your CPP and OAS Benefits When Your Spouse Dies?
- How to Get the Grocery Rebate Payments in Canada in January 2024
How to Claim Canada Housing Benefits?
To claim the Canada Housing Benefit, you will need to contact your provincial or territorial housing authority and follow their application process. Each province and territory has its own eligibility criteria, benefit amount, and priority groups. You can find more information about the Canada Housing Benefit in your province or territory on the Canada.ca website.
To claim the GST/HST new housing rebate, you will need to fill out and submit the appropriate form to the Canada Revenue Agency (CRA) within two years of the purchase or renovation of your home. You can find the forms and instructions on the CRA website.
To claim the Home Buyers Plan, you will need to fill out and submit the T1036 form to your RRSP issuer, who will then withhold taxes or fees on the amount you withdraw. You will also need to report the withdrawal and repayment amounts on your income tax and benefit return. You can find more information on the CRA website.
To claim the Canada Greener Homes Initiative, you will need to register online and book a pre-retrofit evaluation with a certified energy advisor. You will then receive a list of eligible retrofits and the maximum grant amount you can receive. After completing the retrofits, you will need to book a post-retrofit evaluation and submit your receipts online. You will then receive your grant by direct deposit or cheque. You can find more information on the Natural Resources Canada website.
Conclusion
The Government of Canada is committed to helping seniors afford a safe and comfortable home. The one-time payment of $500 for older seniors is a timely measure that will provide immediate relief to those who need it most. The 10% increase to the OAS pension for seniors aged 75 and over will provide long-term support and reduce poverty and housing insecurity among seniors. The government also offers other housing benefits and programs for seniors, such as the Canada Housing Benefit, the GST/HST new housing rebate, the Home Buyers’ Plan, and the Canada Greener Homes Initiative. These benefits and programs can help seniors save money on rent, purchase or renovate a home, or make their home more energy-efficient.
If you are a senior who is looking for housing assistance, you can explore the options available to you and apply for the benefits that suit your needs. You can also contact Service Canada or the CRA for more information or assistance.
Source: (1) One-time payment for older seniors – Canada.ca. https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/one-time-payment-older-seniors.html. (2) Older seniors to receive one-time payment of $500 next week. https://www.canada.ca/en/employment-social-development/news/2021/08/one-time-payment-for-seniors-news-release.html. (3) Canada Housing Benefit 2024: Do I Qualify? | WOWA.ca. https://wowa.ca/canada-housing-benefit.