By: Kyle Gardiner
PDF Version: How the Canada Child Benefit Affects Separated Parents: The Post-relationship Breakdown Family Unit of Taxation
Matter Commented On: The Liberal Government’s Fall Economic Update, Indexing Canada Child Benefit Payments to Inflation
In its fall economic update last Tuesday, the Liberals announced that beginning in July 2018, Canada Child Benefit (CCB) payments will be increased amidst a smaller-than-expected deficit (of $18.4 billion this year, down from the spring projection of $25.5 billion), and a generally favourable economic outlook. This increase of $5.6 billion over five years is significant because it addresses what was the primary criticism of the CCB when it first came into place – that the benefit amounts were not indexed to inflation. The Liberals previously committed to indexing the amount to inflation if they were re-elected in 2019, and this upward adjustment represents a realization of that promise.