The latest child benefits are going out to Canadian parents on Tuesday after a routine increase in monthly payments last month.
The Canada Child Benefit (CCB) amounts were increased in July after an annual recalculation based on a family’s net income from the previous year and inflation.
The federal government said the top-up was “to help parents keep up with the cost of living.”
“That’s more tax-free money back in their pockets every month — to spend on groceries, rent, summer camps and whatever their family needs,” said Employment and Social Development Canada in a statement last month.
CCB payments go to eligible families that have children under the age of 18 residing in Canada.
In August, parents could receive a maximum payment of $648.91 for each child under the age of six years. That is an annual increase of 4.7 per cent relative to 2023.
For every child aged six to 17 years, the maximum CCB payment will be $547.50, which is a 4.7 per cent increase from last year.
The payments are calculated based on the adjusted family net income (AFNI), as reported in the previous year’s tax return, the number of children, and their ages, according to the Canada Revenue Agency.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
Families will get the maximum amount for each child if their AFNI is under $36,502.
“The payments gradually start decreasing when the adjusted family net income is over $36,502,” CRA states on its website.
To be eligible for the CCB payments, a person must reside in Canada with a child who is under the age of 18 years and must be their primary caregiver.
The CCB can also be paid out for a foster child as long as the children’s special allowances (CSA) are not payable in a given month, the CRA says.
Benefits go directly into bank accounts or cheques are mailed out.
The latest CCB payments come weeks ahead of the new school year.
Recent surveys show Canadian parents are feeling “stressed out” about back-to-school shopping and looking for ways to cut back their spending.
In welcome news, Statistics Canada reported on Tuesday that the annual rate of inflation cooled to 2.5 per cent in July, which was the slowest pace for price increase since March 2021.
Next month’s CCB payment will go out on Sept. 20.
© 2024 Global News, a division of Corus Entertainment Inc.