On November 5, the federal government released its Federal Budget for 2026. Below, we outline some of the key proposals outlined that impact disabled people and their families.
Permanent Qualifying Family Member Provision
The Budget proposes making the Qualifying Family Member (QFM) provision for Registered Disability Savings Plans (RDSPs) permanent. This would mean that, as of January 1, 2027, a qualifying family member (such as a parent, spouse, common-law partner, or sibling) could permanently open an RDSP on behalf of an adult beneficiary whose capacity to enter into a contract is in doubt and who does not already have a legal representative.
Prior to the Budget announcement, the QFM provision was scheduled to expire on December 31, 2026. This change would permanently remove the legal hurdle of establishing costly and often problematic formal adult guardianship or power of attorney arrangements just to open an RDSP and access grants and bonds.
A Fully Refundable Canada Caregiver Credit
For individuals who support adults with disabilities, the Canada Caregiver Credit would be converted into a fully refundable tax credit.
Previously, caregivers who owed little or no taxes could not benefit because it was non-refundable. Starting in 2027, eligible caregivers would be able to receive up to $1,260 directly as a refund, regardless of how much they pay in taxes.
Changes to the Canada Workers Benefit
The Budget proposes changing the Canada Workers Benefit to become the new Build Canada Workers Benefit. The new benefit would have significantly lower income thresholds, with the general threshold dropping from $3,000 to $500, and the disability supplement threshold dropping from $1,150 down to $200. This would allow individuals with very low or part-time earnings to access the benefit.
The maximum amount available through the new benefit would also increase to $1,859 for singles and $3,143 for families. The lowest-earning workers who qualify for the disability supplement could see almost $1,000 extra per year.
Advance payments for the benefit would also be phased out throughout 2027, with eligible people receiving a single lump-payment after filing their annual tax return, starting in 2028.
Canada Groceries and Essentials Benefit Top-Up
Budget 2026 proposes a 50% one-time top-up to the Canada Groceries and Essentials Benefit for the 2026–27 program year. This would provide up to $339 for a single person without children and up to $679 for a couple with two children, to be paid out in early 2027.
Combined with permanent 25% program increases announced earlier in 2026, maximum annual support in 2027 would reach up to $1,290 for a single individual and up to $2,570 for a couple with two children.
Simplification of Disability-Related Tax Claims
The Budget proposes a number of measures that would simplify disability-related tax claims.
To access the Medical Expense Tax Credit, certain expenses would no longer require medical documentation, or would only need a certification of the underlying condition. This would mean a document proving the medical condition(s) could be used to claim multiple eligible related expenses. The government intends for this measure to come into effect beginning in the 2026 tax year.
Additionally, optional flat rates would be available for specific medical circumstances, including $2,000 for expenses related to a service dog, $500 for incontinence products and $1,000 for gluten-free food expenses for those with celiac disease. Tax filers would not need to document specific expenses to benefit from these flat-rate options.
Similarly, individuals making physical modifications to their homes (such as installing ramps, widening doors, or adding walk-in tubs) would be able to claim an optional flat $1,000 rate for the Home Accessibility Tax Credit in any given year.
Increasing Access to Tax Filing and Federal Benefits
The government also announced some measures designed to help people on low incomes or who are disconnected from the system to file their taxes and access benefits they are entitled to. This includes offering a pre-filled return to lower-income individuals with simple tax situations, rolling out a deemed filing pilot for eligible people who do not owe tax to automatically trigger key benefits, and funding outreach to people who are currently disconnected from the tax system.
Plan Institute’s Reaction
While we welcome some of the broader affordability measures outlined in the budget, we are extremely disappointed at the conspicuous absence of proposals that would directly impact the financial security of people with disabilities. Plan Institute and our partners have repeatedly stressed the need for further reforms to the Disability Tax Credit as well as meaningful changes to expand the impact of the Canada Disability Benefit, and we will continue to advocate for structural changes to these and other benefits that have the potential to truly address poverty levels for disabled people in Canada.
A note to consider is that at this stage, the budget is in proposal form. The measures outlined will be debated in parliament and will be made official once an approved budget has been passed.
