Eligible families should have received their first Canada child benefit (CCB) payments last week.
The CCB payments will be issued monthly to all Canadians, including Aboriginal people, replacing the Canada child tax benefit, national child benefit and universal child care benefit.
According to government, the CCB is simpler, tax-free, and better targeted to those who need it most. The new benefit puts more money in the pockets of nine out of 10 families, and helps them with the high costs of raising their children.
The new CCB will provide a maximum annual benefit of up to $6400 per child under the age of six and up to $5400, per child, aged six through 17.
Families with less than $30,000 in net income will receive the maximum benefit while families earning more than $200,000 per year will see their payments eliminated.
Families whose children qualify for the disability tax credit can receive an additional amount as part of their CCB, up to a maximum annual benefit of $2730 per eligible child.
Prime Minister Justin Trudeau said more support means more opportunities for middle-class Canadians to save, invest, and grow the Canadian economy.
“Too many middle-class families struggle with the high costs of raising their children,” said Trudeau. “The new CCB means more money for healthier groceries, kids’ summer programs, and back-to-school clothes.”
“This new child benefit is much more generous, and will help the Canadian economy grow for years to come,” he added.
With the introduction of the new benefit, about 300,000 fewer children will be living in poverty in 2017 compared with 2014, according to government.
Parents who have received a previous child benefit and who filed their income tax and benefit return for 2015 are automatically assessed for eligibility for the CCB.
Parents of newborn children can apply for the new benefit using Canada Revenue Agency’s automated benefits application service at http://www.cra-arc.gc.ca/bnfts/tmtd-eng.html
Government has also created an online calculator to help parents get an estimate of how much money they would be eligible to receive at http://www.cra-arc.gc.ca/benefits-calculator/