Effective today, Canadian families will see an annual increase in their monthly Canada Child Benefit (CCB).
The tax-free support is intended to help families keep up with the cost of living.
Nipissing-Timiskaming MP Anthony Rota made the announcement on behalf of his government in North Bay at the EarlyON centre.
“When you’re looking at CCB, if it’s given then taxed back, there really is a reduced benefit,” said Rota.
“By making it tax-free, what parents and families get to raise their family with, really helps them now, and they don’t have to worry down the road. So it’s very important that that money stays and it benefits the children.”
For the 2018-2019 benefit year, CCB now has a maximum annual benefit of $6,496 per child under the age of six, and $5,481 per child aged six through 17.
A statement from Rota’s office explains that,
“CCB payments are calculated based on the amount of income in a family using the previous year’s tax return. Starting July 20, those receiving the benefit will see a cost of living increase of 1.5 per cent for 2018-19. The projected indexation for 2019-20 is 2 per cent.”
Rota’s communication officer, Carla Ammerata, says the key to accessing the benefit is through income tax filings.
“That’s information that is used to calculate the Canada Child Benefit,” said Ammerata.
“Within Indigenous communities, not all parents are accessing the benefit. The Minister of Families, Children and Social Development, Jean-Yves Duclo, has addressed this directly, and the estimate is that one in five families who live on reserve don’t access the benefit because they don’t file income taxes. I know the government is trying to do more outreach in those communities to encourage them so that they do have a way to access money to help raise their children.”
The income qualification for families has also been adjusted.
“The threshold to receive the maximum benefit used to be $30,000. Now, with indexing for inflation, that threshold increases to $30,450. Next year it will be $31,059.”
In Rota’s riding, more than 15,900 children receive benefits of more than $58 million annually.
The change, which was announced in the 2018 Federal Budget, comes two years ahead of schedule.
The government says the increase means nine out of 10 Canadian families will have more money to help with expenses.
Natasha Worthington is a mom of two children, aged two and five. She says the announcement of additional funding is going to be a big help for her family.
“It was a great surprise. I didn’t know that was happening at all. It means we can count on a little extra money to help us get by, month to month. So it definitely helps us be happier overall, and not have to worry so much.”
