Do You Know About Canada Federal 2016 Budget, We Have It Here

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Do You Know About Canada Federal 2016 Budget, We Have It Here

Canada Child Benefit

Budget 2016 proposes to create a new Canada Child Benefit (CCB) providing monthly tax-free benefits that are tied to income, to replace the Universal Child Care Benefit (UCCB), Canada Child Tax Benefit (CCTB) and National Child Benefit Supplement (NCBS).  The Canada Child Benefit payments will start in July 2016.

The new CCB will provide a maximum benefit of $6,400 per child under 6 and $5,400 per child aged 6 through 17.  The benefit will be reduced when adjusted family net income is over $30,000.  There will be different % rates of reduction depending on the number of children, and when adjusted family net income exceeds $65,000 the % rates of reduction change.  Entitlement to the CCB for the July 2016 to June 2017 benefit year will be based on adjusted family net income for the 2015 taxation year.   Budget 2016 proposes to continue to provide an additional amount of up to $2,730 per child eligible for the disability tax credit.  The reduction of this additional amount based on income will be made in the same manner as the reduction to the CCB.  The additional amount will be included in the CCB payments made to eligible families.

For a family with 2 children under 6 and adjusted family net income of up to $30,000, the CCB would be $12,800 per year.  For adjusted family net income of $65,000, the CCB would be reduced from $12,800 (2 x $6,400) to $8,075.  The benefit is reduced to zero at adjusted family net income of approximately $107,050.

Budget 2016 also proposes to allow a taxpayer to request retroactive payments of the CCB, CCTB or UCCB, with a 10 year time limit, as in the Taxpayer Relief Provisions, but in a slightly different manner.  A retroactive payment request ill be able to be made in respect of a month on or before the day that is 10 years after the beginning of that month, effective for requests made after June 2016.

Family Tax Cut

Budget 2016 proposes to eliminate the Family Tax Cut for 2016 and later years.  Legislative proposals announced on December 7, 2015 included elimination of the Family Tax Cut for 2016 and later years.