OTTAWA: A payment of up to $300 for each child under the age of six has been issued by the Federal Government to families entitled to the Canada Child Benefit (CCB).
This measure will benefit approximately 1.6 million Canadian families and approximately 2.1 million children under the age of six. Ahmed Hussen, Minister of Families, Children and Social Development, highlighted the additional temporary support in 2021 through the CCB Young Child Supplement saying that parents will receive a total of up to $1,200 for each child under the age of six in addition to regular CCB payments in 2021.
The first and second CCB Young Child Supplement payments of up to $600 combined were issued on May 28, 2021.
The third payment was issued this week, and the final payment will be issued on October 29, 2021. For the past five years, the Canada Child Benefit (CCB) has helped lift 435,000 children out of poverty by providing approximately $25 billion each year in tax-free support to about 3.5 million families.
As part of the latest measure, families entitled to the CCB for a child under the age of six with a net income of $120,000 or less in 2020 will receive one taxfree payment of $300 per child.
Families entitled to the CCB for a child under the age of six with a net income above $120,000 in 2020 will receive one tax-free payment of $150 per child. The Government of Canada has also raised the regular CCB, for the fourth year in a row, starting on July 20, 2021, to help parents keep up with the rising cost of living and to better provide for their children.
For the 2021-22 benefit year, the maximum annual CCB is $6,833 per child under the age of six and $5,765 per child aged six through 17, representing over $350 more per child than when the CCB was first introduced in 2016.
Hussen said: “Having young children at home during the COVID-19 pandemic has been challenging for many families. These additional supports for families through the Canada Child Benefit will help us weather the storm together as we build back a stronger, more prosperous Canada.”
Diane Lebouthillier, Minister of National Revenue, added: “I am delighted that our government continues to support families and vulnerable Canadians. I know these benefits have had, and will continue to have, a positive impact in the lives of our children.”
• The CCB is a simple, taxfree monthly payment based on income.
• The Government of Canada indexed the CCB for the first time in July 2018. This indexation means that the maximum benefit amounts and income thresholds at which benefits begin to be reduced are increased.
• As an added measure in May 2020, the government delivered almost $2 billion in additional support through a special, onetime top-up of the CCB of up to $300 per child, benefitting approximately 3.7 million families.
• The CCB Young Child Supplement payments that were made on May 28, 2021, for each of the first two quarters – January and April – were based on the family net income for 2019.
• The latest payment and the October payment are based on the family net income for 2020.
• Families that already receive the CCB will not need to take any action to receive supplement payments. However, families do need to file their 2019 and 2020 tax returns to access them.
• Families that have not yet filed for either year could still be entitled to receive the CCB and the CCB Young Child Supplement by filing their income taxes.
• Agencies that receive children’s special allowances (CSA) payments will also receive the tax-free CCB Young Child Supplement equivalent payments of $300 for each child under the age of six for whom the CSA is paid in January, April, July, and October 2021.