Immigrating to Canada to understand Canadian benefits: On the afternoon of October 30, Prime Minister Harper announced three major benefits in Vaughan, Greater Toronto Area, fulfilling election promises. In addition to launching an income splitting plan for families (also known as income splitting), two new benefits for children were introduced. It is estimated that 4 million families across Canada will benefit, with the government citing a total of C$4.6 billion in tax relief.
The first new measure is the income splitting plan for couples; this new policy applies to two-parent families with children under 18 years of age. This will allow the higher-income spouse to transfer up to C$50,000 per year to the lower-income spouse, but this measure stipulates a maximum tax-free cap of C$2,000 for qualifying families.
The second new measure increases the Universal Child Care Benefit for children under 6 years old from C$100 to C$160. Starting January 1 of next year, a new child benefit will be introduced, providing a monthly payment of C$60 for children aged 6 to 17.
The third new measure is that the maximum annual limit for the Child Care Expense Deduction will be increased by C$1,000.
Prime Minister Harper stated, “In the plans we announced today, every Canadian family with children will benefit, and everyone will have more money in their own pockets.”
Prime Minister Harper also said that, on average, families with children under the age of 18 will receive C$1,140 annually in tax relief benefits.