Too many middle class families are struggling to get ahead. It is harder and harder for families to save money for the high cost of raising their children when the cost of living keeps rising. This month, in response to this, our government announced the implementation of the Canada Child Benefit: a simpler, tax-free, more generous and better targeted federal tax benefit.
The CCB will give families more help with the high cost of raising their kids, and is designed to put money into the pockets of those who need it most. The CCB is expected to lift almost 300,000 children out of poverty, and I`m very excited about the positive impacts that this benefit will have on families in our community.
The new Canada Child Benefit will be:
- Simpler – families will receive a single payment every month;
- Tax-free – families won’t have to pay back amounts received when they file their tax returns;
- Better-targeted to those who need it most – low- and middle-income families will receive more benefits, and those with the highest incomes (generally over $150,000) will receive lower benefits than under the current system; and
- Much more generous – families benefiting will see an average increase in child benefits of almost $2,300 in the 2016-17 benefit year.
The Canada Child Benefit will be paid monthly to eligible families, beginning in July 2016, replacing the Canada Child Tax Benefit and the Universal Child Care Benefit. The CCB will provide a maximum annual benefit of up to $6,400 per child under the age of 6 and up to $5,400 per child aged 6 through 17. This single monthly benefit will be recalculated every July based on information from families’ income tax and benefit return from the previous year. It is tax-free and Canadian families will not have to pay back the amounts received when they file their tax returns each year.
To recognize the additional costs of caring for a child with a severe disability, Budget 2016 proposes to continue to provide the Child Disability Benefit, an additional amount of up to $2,730 per child eligible for the Disability Tax Credit.
We are proud that we are now giving back to Canadian families, ensuring their children can reach their fullest potential while we continue to build an economy that works for the middle class.
To find out how much a Canadian family can benefit monthly use our online CCB calculator at: http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html