The budget introduces a new Canada Child Benefit that provides monthly payments to eligible families, beginning in July 2016. The credit, which replaces the Canada Child Tax Benefit and Universal Child Care benefit, provides a maximum annual benefit of up to $6400.00 per child under the age of 6 and up to $5400.00 per child for those aged 6 through 17. The budget provides that families with less than 30,000 and $65.000, the benefit will be phased out at a rate of 7% for a one-child family, 13.5% for a two-child family, 19% for a three-child family and 23% for larger families. Where adjusted family net income exceeds $65,000, remaining benefits will be phased out at rates of 3.2% for a on-child family, 5.7% for a two -child family, 8% for a three child family and 9.5% for a larger families, on the portion of income above $65,000.
Amounts received under the new Canada Child Benefit will not be taxable and will not reduce benefits paid under the goods and services tax credit. These amounts will also not be included. in income for the purposes of federal income-tested programs delivered outside of the income tax system, such as Guaranteed Income Supplement, the Canada Education Savings Grant, the Canada Learning Bond, the Canada disability savings bond and the Canada disability savings grant.
