The Trudeau government just unveiled its first budget with much fanfare surrounding its new increased childcare benefits. Starting in July, most families will see an increase in the amount they receive each month, and not a penny of it will be taxed – unlike the Universal Child Care Benefit under the Harper Government. Score!
Previously, families received $160 for every child under 6, and $60 for every child between 6-17. Now, the amount that families will receive will be determined by their annual income. Any family with a net income of $30,000 or less will receive the maximum annual payout of $6400 per child under 6, and $5400 per child between 6-17. So, if you’re in that income bracket and have one child in each age group that’s almost $10,000 extra per year. Whoa, right?
This handy info-graphic gives a broader scope of how the new program differs from the old one, and how different types of families can benefit.
A typical Canadian family of 4 will see an average increase of $2500 tax free annually, but if you want a more accurate picture of how much your family will be receiving each month, you can use this Canada Child Care Benefit Calculator. It may not be free universal child care, but hey, we’ll take what we can get!