The long wait is over; Ottawa is revamping the child tax benefits to help the low and middle-income families. The changes were promised in the Liberal campaign platform.
In the current system, families with net income of $30,000 and with one kid under six would have received $4,852 in child benefits and $3,916 if the kid is 6-17 years old.
Starting July 2016, the new Canada Child Benefit program will pay up to $6,400 per child under six and up to $5,400 per child for those aged 6 to 17; however, the benefits begin to phase out starting at $30,000 in net family income. Those families earning more than $150,000 a year will receive less.
Canada Child Benefit is replacing the current Canada Child Tax Benefit (CCTB), Universal Child Care Benefit (UCCB), National Canada Benefit and Supplement (NCBS).
“Canada Child Benefit is bigger, tax-free, fair, automatic and monthly.” – Prime Minister Justin Trudeau
They also are eliminating income splitting for couples with children as well as phasing out the children’s fitness tax credit and the children’s arts tax credit. The fitness and arts tax credits, worth up to $150 and $75 respectively for those who claim them, will be cut in half for 2016 and eliminated for 2017.
Click here for the Canada Child Benefit Calculator.