Budget 1997 Building the Future for Canadians - Budget Main Page -

Fact Sheet

Investing in a Stronger Society: Helping Canadians with Disabilities

Canadians with disabilities often face barriers that prevent them from fully contributing to society and the economy. The federal government is committed to helping persons with disabilities participate as fully as possible in Canadian society.

In the 1996 budget, as a demonstration of this commitment, the government doubled the tax assistance for those who provide in-home care for infirm family members. A Federal Task Force on Disability Issues was later established with a mandate to conduct an in-depth review of measures for Canadians with disabilities.

The 1997 budget proposes a number of measures that flow directly from the recommendations of the Task Force. Together, the tax measures introduced in this budget and the proposed creation of the Opportunities Fund will provide an additional $100 million a year on assistance for Canadians with disabilities and/or high medical costs and for the organizations that support them.

Increased tax assistance for people with disabilities

The 1997 budget proposes to increase the amount of tax assistance provided for disability-related costs by about $70 million annually. The new measures include:

• eliminating the $5,000 limit on the deduction for attendant care expenses for people with disabilities who are in the workforce and require these services to earn their incomes;

• broadening the list of expenses eligible for the medical expense tax credit to include:
  • 20 per cent of the cost of a van adapted, or to be adapted within six months, for the transportation of an individual using a wheelchair to a maximum of $5,000;
  • 50 per cent of the cost of an air conditioner to help an individual to cope with a severe chronic ailment, disease or disorder up to a maximum of $1,000;
  • expenses incurred for moving to accessible housing;
  • reasonable costs of alterations to the driveway of the principal residence of an individual with a severe and prolonged mobility impairment to facilitate access to a bus;
  • sign language interpreter fees; and
  • an increase in the limit on part-time attendant care expenses from $5,000 to $10,000.

Other proposed measures for Canadians with disabilities include:

• allowing audiologists to certify eligibility for the disability tax credit;

• amending the Customs Tariff to provide duty-free entry for all goods designed for the use of persons with disabilities; and

• broadening the definition of a preferred beneficiary under a trust to include adults who are dependent on others by reason of mental or physical infirmity.

Relief for Canadians with disabilities entering the labour force

Canadians with disabilities who enter the labour force often face not only additional costs, but also the potential loss of benefits provided by income security programs. In fact, people with disabilities are sometimes economically penalized for working. In response to this, the 1997 budget proposes to introduce a refundable medical expense credit for low-income working Canadians with high medical expenses. This tax credit will supplement assistance already provided through the medical expense tax credit.

The new credit will be 25 per cent of eligible medical expenses up to a maximum of $500. To qualify, individuals must have at least $2,500 in earnings. To ensure that assistance is targeted to those with low incomes, the basic benefit will be reduced by 5 per cent of net family income that exceeds $16,069.

This measure will provide additional support to about 280,000 low-income working Canadians with high medical expenses.

Opportunities Fund

The government is introducing a $30 million a year over three years Opportunities Fund to generate innovative projects that can be shared across the country so that persons with disabilities may prepare for, find and keep jobs. The Fund will build on strong partnerships already in place with disability groups and the private sector. Projects will be developed by partners in conjunction with the provinces. Together with the Vocational Rehabilitation of Disabled Persons Program, this Fund will improve the prospects of the disabled who want to join the workforce and integrate more fully into the economic mainstream of Canadian society.

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