What the federal fiscal update means for your family
Published Wednesday, October 25, 2017 11:42AM EDT
In its fall economic update, the federal government said a stronger-than-expected Canadian economy has created a windfall that will be spent on investments, tax relief and social programs.
Finance Minister Bill Morneau told the House of Commons Tuesday that the government will “invest directly in Canadians and their families.” So what does this mean for your family?
If you have children:
The government is increasing the Canada child benefit by indexing it to inflation as of July, 2018 – two years earlier than planned -- to reflect the rising cost of living.
The Liberals introduced the $23-billion Canada child benefit (CCB) program in 2016. It gives families with children under the age of 18 a monthly tax-free payment, the amount of which is tied to income.
Increases to the child benefit will result in $96 dollars more per child under the age of six, and $81 more for children aged six through 17, in 2018-19. That means an average family with two children will collect approximately $200 more in Canada child benefit payments next year.
CCB currently pays up to $6,400 a year (or $533 a month) per child under the age of six, and up to $5,400 for older children, until age 17. However, the benefit amount begins to decrease as a family’s net income surpasses $30,000.
If you are a low-income worker, or transitioning into the workforce:
Since the Liberals formed a majority government after the 2015 election, their mantra has been “helping the middle class and those working hard to join it.”
The fall economic update includes an increase to the working income tax benefit program, designed to supplement the earnings of low-income workers, especially those who go off government assistance and get a job.
The refundable tax credit “lets low-income workers keep more of their paycheque,” and gives them an incentive to enter and stay in the workforce, the government said.
The amount recipients receive depends on their marital status, location, income, and any eligible dependents.
The working income tax benefit program is being increased by $500 million per year, starting in 2019. The government said it will release further details about the program in next year’s budget.
With files from CTVNews.ca’s Rachel Aiello and The Canadian Press