Why the premier says Island families have most to gain from new child tax benefit
Jessica Doria-Brown | CBC News | Posted: July 13, 2016 10:00 PM | Last Updated: July 13, 2016
Families will net income under $30K will receive maximum benefits
Premier Wade MacLauchlan says Islanders stand to gain the most from the new Canada Child Benefit in large part because the province has some of the lowest wages in the country.
What that means in the further fiscal year of 2017-18 is an additional $25 million ...at the disposal of Prince Edward Island families. - Premier Wade MacLauchlan
The CCB replaces the Universal Child Care Benefit and the Canada Child Tax Credit.
MacLauchlan offered more detail on the new benefit and how it will impact Islanders on Wednesday.
$21M to Island families
"Enhancement of the Canada Child Benefit here in Prince Edward Island represents an additional $21 million in the hands and in the budgets of P.E.I. families," said MacLauchlan.
"And in particular, P.E.I. families who are in the greatest need in this year."
Families with a net income of up to $30,000 will receive maximum benefits.
And those benefits are set to increase next year.
"What that means in the further fiscal year of 2017-18 is an additional $25 million in circulation and at the disposal of Prince Edward Island families and at the benefit of Prince Edward Island children," said MacLauchlan.
"And that's a tremendous thing."
A boost of $10K for many
For some Island families, MacLauchlan said, the benefit will amount to an additional $10,000 in non-taxable income per year. He confirmed receipt of the benefit will not impact housing or social assistance benefits.
To receive the benefit, Canadians are required to submit annual income tax returns. The Canada Revenue Agency confirms that anyone with income tax debt will still receive the benefit. The CCB will be protected from being applied to outstanding debts, other than CCB debts or outstanding Canada Child Tax Benefit debts.
Families should start to receive benefit cheques at the end of this month.
- MORE P.E.I. NEWS | 6 things you should know about new CT scanner at Prince County Hospital
- MORE P.E.I. NEWS | Relieved, happy but not triumphant: A priest reflects on same-sex marriage vote