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RISING WOMEN EXPERTS...
How will the new federal Child Allowance effect my family and our
taxes?
By RWM Editorial
The issue surrounding the federal Child Care Allowance is definitely one
that needs to be addressed and re-evaluated by our Canadian government.
Sounds ideal on the surface, but in reality it is not in the best interest
of families that are most in need where child care is concerned.
Here is a brief overview: As opposed to creating thousands of new daycare
spaces, the Conservative government proposed to end the 11 billion dollar
National Child-Care Development Agreement that was originally set up by the
Liberals. Instead, the Conservatives are introducing a $1,200/year child
care “Allowance” for children under six. This proposal alone reflects
questionable governmental decision making because now only a small
percentage of families will benefit.
The Child Care Allowance is proposed to be paid monthly with the Canada
Child Tax Benefit (CCTB) and National Child Benefit Supplement (NCBS). On
the plus side, unlike the CCTB and NCBS, the Child Care Allowance will not
be based on family income so each family is guaranteed $100 per month per
child under six. However, this extra income will be taxable in the hands of
the parents with the lower income, according to a report put out by CBC.
Another downside to the Child Care Allowance is that in many provinces
low-income families receiving social assistance payments will not benefit
from this program. Social assistance cheques exclude any federal benefits a
family receives. There really is truth to the “rich getting richer”, isn’t
there!
The working parent is also effected drastically. Without the funding to
build quality child care spaces, Canadian families are still subject to the
lack of daycare facilities available. According to the Child Care Advocacy
Association of Canada, the existing daycare facilities available can only
house 16 percent of the children in need of this service. Apparently having
more money is not going to make a difference to working families if the
child care facilities don’t exist.
Make note: this allowance is sent automatically to those have previously
applied for Child Tax Benefits. Those who haven’t applied, and for families
with higher incomes who did not previously qualify, you still can and need
to apply.
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email RWM at
experts@risingwomen.com |
