The government began delivering CAI payments to Canadians on a quarterly basis starting in July 2022. This approach returns fuel charge (tax) proceeds to households on a more regular basis, with 8 out of 10 households getting more money back than they pay. Check your October, 2023 bank statement to see how much you receive every 3 months. Some statements may simply show the deposit amount as “Canada CAI“, especially if viewed on a phone banking app.
Climate Action Incentive Payments
| Quarterly Climate Action Incentive Payment Amounts as Specified by the Minister of Finance, 2023-24 | AB | MB | ON | SK | NL | NS | PEI* |
|---|---|---|---|---|---|---|---|
| First Adult | $193 | $132 | $122 | $170 | $164 | $124 | $120 |
| Second Adult | $96.50 | $66 | $61 | $85 | $82 | $62 | $60 |
| Each Child | $48.25 | $33 | $30.50 | $42.50 | $41 | $31 | $30 |
| Family of 4 | $386 | $264 | $244 | $340 | $328 | $248 | $240 |
| Payment Dates | April 2023 July 2023 October 2023 January 2024 | July 2023 October 2023 January 2024 | |||||
| *The amount for PEI includes the 10 per cent rural supplement, as all residents are eligible. Rural residents in other provinces will also receive the 10 per cent rural supplement, which is not reflected in this table. | |||||||
| Annual Climate Action Incentive Payments, using 2023-24 amounts1 | AB | MB | ON | SK | NL | NS | PEI2 |
|---|---|---|---|---|---|---|---|
| First Adult | $772 | $528 | $488 | $680 | $656 | $496 | $480 |
| Second Adult | $386 | $264 | $244 | $340 | $328 | $248 | $240 |
| Each Child | $193 | $132 | $122 | $170 | $164 | $124 | $120 |
| Family of 4 | $1,544 | $1,056 | $976 | $1,360 | $1,312 | $992 | $960 |
| Payment Dates | April 2023 July 2023 October 2023 January 2024 | July 2023 October 2023 January 2024 | |||||
| 1 Residents of Newfoundland and Labrador, Nova Scotia, and Prince Edward Island are not eligible for an April 2023 payment because the federal fuel charge will only apply to these provinces as of July 1, 2023. Annual entitlements for Newfoundland and Labrador, Nova Scotia, and Prince Edward Island are for explanatory purposes: calculations use four quarterly payments at the 2023-24 rate, while the fourth quarterly payment in these provinces, in April 2024, notionally reflects future 2024-25 amounts.2 The amount for Prince Edward Island includes the 10 per cent rural supplement, as all residents are eligible. Rural residents in other provinces will also receive the 10 per cent rural supplement. | |||||||
Backgrounder
Continuing to Make Sure Most Households Get More Money Back Than They Pay
November 22, 2022
The federal government applies a price on pollution in jurisdictions that do not have their own pollution pricing systems which meets the federal benchmark. Specifically, in 2023-24, the federal fuel charge will continue to apply in Alberta, Saskatchewan, Manitoba, and Ontario, and will come into effect as of July 1, 2023 in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
The Government of Canada does not keep any direct proceeds from pollution pricing. All direct proceeds from the federal fuel charge are returned to the province or territory of origin in the following way:
- For those jurisdictions that have voluntarily adopted the federal system, direct proceeds are returned to the governments of those jurisdictions.
- For those provinces that do not meet the federal stringency requirements in 2023-24 — Alberta, Manitoba, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan — 90 per cent of direct proceeds from the federal fuel charge will be returned to residents of those provinces through Climate Action Incentive (CAI) payments. The other 10 per cent will be used to support small businesses and Indigenous groups.
- Proceeds relating specifically to the use of natural gas and propane by farmers are returned directly to farmers via a refundable tax credit.
- Fishers and farmers are currently exempt from paying the federal fuel charge on gasoline and light fuel oil (e.g., diesel) used for eligible fishing and farming activities in provinces currently under the federal program. These exemptions will continue to apply in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island after July 1, 2023.