By now you've heard a lot about the decision by the Liberal party to scrap the Canada Child Tax Benefit (CCTB) and Universal Canadian Child Benefit (UCCB) and replace it with a new, non-taxable benefit called the Canadian Child Benefit (CCB). But have you been able to make sense of how this change will directly affect your family?
Here are some important points to know about the change, coming to Canadian families beginning in July 2016:
- Liberals cite a confusing and complicated existing child benefit system as their main reason for introducing the CCB—an attempt to both simplify the benefit and ensure that it is targeting the Canadian families that need it most
- beginning in July 2016, the CCTB and UCCB will be replaced with one benefit—the Canada Child Benefit—a refundable credit based on net family income
- essentially this means lower income families will receive higher benefits than higher income families, and some families with very high net incomes will no longer receive benefit dollars at all
- maximum benefit amounts will be $6,400 per child under the age of six and $5,400 per child aged six to 17
- approximately 9 million Canadian families will be affected by this change, and the Liberals anticipate that most of those families will be receiving an increase in their benefit amounts, on average to around $2300
That's a lot to take in and it's certainly not easy to decipher what exactly you can expect to receive for your family starting in July. There are a few useful tools that you can try to help you determine if your benefits are going to increase or decrease under the new plan.
Money Sense has put together this helpful calculator that will tell you, based on your province and gross family income, what you can expect to recieve. If you prefer to go straight to the source and receive an approximate calculation, the Government of Canada has a simplified version on their site as well.
How will your family be affected by these changes? Are you expecting to see an increase or decrease in your monthly/annual child benefits come July? Let us know in the comments here, or come join the discussion over on our Facebook page!
(Photo Credit: Miki Yoshihito on Creative Commons)