Government of Canada Highlights New Tax Cuts and Benefits for Canadian Families on National Child Day

GATINEAU, QC, Nov. 20, 2014 /CNW Telbec/ - Today, to mark National Child Day, the Government of Canada is reiterating its commitments to helping families prosper and making life more affordable for Canadian families. The Government of Canada is helping Canadian families give their children the best possible start in life so that they can reach their full potential.

To achieve this, the Government recently announced new tax cuts and benefits for Canadian families. Under these proposed changes, the Universal Child Care Benefit (UCCB) will be enhanced to provide $160 per month for each child under the age of 6, and $60 per month for children aged 6 through 17. Over the course of a year, parents will receive $1920 for each child under the age of 6, and $720 for each child aged 6 through 17. About four million families will benefit from the proposed enhancements to the UCCB.

Other proposed new measures to support families include:

• Introducing the Family Tax Cut, a federal tax credit that will allow a spouse to, in effect, transfer up to $50,000 of taxable income to a spouse in a lower tax bracket. The credit will provide tax relief—capped at $2,000—for couples with children under the age of 18, effective for the 2014 taxation year.
• Increasing the Child Care Expense Deduction dollar limits by $1,000, effective for the 2015 taxation year.
• Doubling the Children's Fitness Tax Credit and making it refundable. The maximum amount of expenses that may be claimed under the credit will be doubled from its current limit to $1,000 for the 2014 tax year and subsequent tax years, and the credit will be made refundable effective for the 2015 and subsequent tax years.

Quick Facts

• National Child Day is celebrated each year in Canada, on November 20^th, in recognition of the UN Declaration on the Rights of the Child and the UN Convention on the Rights of the Child.
  
• A recent Unicef report showed that Canada's child poverty rate decreased during the recession, pulling roughly 180,000 children out of poverty ("Report Card 12: Children of the Recession, Canadian Companion").
• All families with children will benefit from the new measures introduced by the Government. The average tax relief and benefits for these families will be $1,140 in 2015.
• Canadians at all income levels are benefiting from federal tax relief measures introduced since 2006, with low- and middle-income Canadians receiving proportionately greater relief.
• The monthly Canada Child Tax Benefit will remain. The changes recently announced do not affect the Canada Child Tax Benefit at all.

Quote

"Assisting families with the support needed to ensure their children reach their full potential is one of the most crucial investments that we, as a country, can make. That is the reason why the Government of Canada has introduced new measures to improve the lives of families and their children by making important priorities like child care and after-school sports more affordable."

— The Honourable Candice Bergen, Minister of State (Social Development)

Associated Links

• Website: Helping Families Prosper
• Backgrounder: Helping Families Prosper
• Public Health Agency of Canada: National Child Day

SOURCE: Employment and Social Development Canada

Christine Csversko, Office of Minister Bergen, 819-994-2482; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected], Follow us on Twitter