Introducing The New Canada Child Benefit!

Introducing The New Canada Child Benefit!

Introducing The New Canada Child Benefit!

As all families quickly find out, raising a child is a very expensive endeavour. While the total costs of childcare are debated, it’s agreed that these costs are steadily increasing. To help with these costs, the Canadian Government has introduced new benefits that will help lighten some of the financial stress that many families encounter. Beginning on July 1st 2016, many Canadian families can expect to receive an increase in their monthly child benefits under the new Canada Child Benefit.

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What’s New – The New Canada Child Benefit

The new Canada child benefit will begin on July 1st, 2016 and has been stated by that it will increase tax-free child benefits to many households. The new benefit is determined by how many children are in a household, the children’s age and total household income is. So for example, a benefit payment will increase for each child in a household, but will decrease as total household income increases.

The maximum benefits are;

  • $533.33 a month for each child that is under 6 years of age.
  • $450 a month for each child that is 6-17 years of age.

Maximum benefit will be paid to households that earn under $30,000 and will progessively decrease as household income increases. Here’s a chart provided by the government that illustrates the relationship between child benefit and household income.

For example, this chart illustrates the expected benefits for a child that is under 6

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To find out what your household qualifies for, you can use this calculator.

Disability Child Benefit

Families that have disabled children will also receive an extra benefit to help with their child costs. This benefit will pay an extra annual maximum of $2,750. Overall, this raises the maximum child benefits to $9,150 a year or $762.50 a month for children under 6 and $8,150 or $679.17 a month for children aged 6-17 years old. As with the Canada Child Benefit, the payment amount will decrease as household income increases and is tax-free.

What is Old and Gone?

Beginning July 1st, 2016, many governmental benefits will be phased out. The new Canada Child Benefit will replace the old Child Care Tax Benefits and the Universal Child Care Benefit. Family income splitting will also be eliminated immediately in the 2016 tax year. Further, the beloved Activity and Arts Tax Credits have gone the way of the dinosaurs and will be eliminated during the 2017 tax year.

In summary, these are the eliminated grants;

  • Canada Child Tax Benefit
  • Universal Child Care Benefit
  • Family Income Splitting
  • Activity and Arts Credits

Well that’s it for the changes to the childcare benefits program. If you have any questions you can contact me at info@ffcoach.ca or 647-289-0012

 



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