Canada Child Benefit (CCB) 2023-2024: Increased Payments and Eligibility
As part of its efforts to support families, the Canada Revenue Agency (CRA) is set to introduce a new and increased Canada Child Benefit (CCB) on July 20, 2023. The CCB aims to provide financial assistance to parents and caregivers residing in Canada, ensuring that children receive the care they need to thrive.
In line with inflation, the income thresholds for the CCB have been adjusted for the 2023-2024 period, making it possible for more families to qualify for the maximum monthly benefit.
Increased CCB Payments
Starting from July 2023 to June 2024, eligible families will see a boost in their CCB payments, providing greater financial relief for child-rearing expenses. For families with one child aged less than six, the maximum tax-free benefit will increase from $6,997 per year to $7,437 per year, which amounts to $619.75 per month. For families with children aged six to 17, the maximum benefit will be $6,275 per year, equivalent to $529.91 per month.
Adjusted Family Net Income (AFNI) and Payment Reductions
The CCB amount is determined based on the adjusted family net income (AFNI) as reported on the previous year’s tax return. Families with an AFNI greater than $34,863 but less than $75,537 will experience a reduction in their CCB payments. The reduction percentages vary based on the number of eligible children in the family:
Families with one eligible child:
7% reduction of AFNI greater than $34,863 up to $75,537
For income greater than $75,537, a reduction of $2,847 plus 3.2% of AFNI greater than $75,537
Families with two eligible children:
13.5% reduction of AFNI greater than $34,863 up to $75,537
For income greater than $75,537, a reduction of $5,491 plus 5.7% of AFNI greater than $75,537
Families with three eligible children:
19% reduction of AFNI greater than $34,863 up to $75,537
For income greater than $75,537, a reduction of $7,728 plus 8% of AFNI greater than $75,537
Families with four or more eligible children:
23% reduction of AFNI greater than $34,863 up to $75,537
For income greater than $75,537, a reduction of $9,355 plus 9.5% of AFNI greater than $75,537
Eligibility Criteria
To be eligible for the Canada Child Benefit, an individual or couple must meet the following requirements:
Reside in Canada and be predominantly accountable for the care and upbringing of a minor under the age of 18.
Be a Canadian citizen, permanent resident, protected person, or a temporary resident who has lived in Canada for the previous
18 months and holds a valid permit in the 19th month, excluding permits stating “does not confer status” or “does not confer temporary resident status.”
Be registered or entitled to be registered under the Indian Act.
The Canada Child Benefit is a vital program that provides financial support to families across Canada. With the 2023-2024 adjustments, more families will qualify for increased monthly benefits, easing the financial burden of child-rearing expenses. If you are eligible for the CCB, make sure to keep your income information up to date with the Canada Revenue Agency to ensure you receive the correct and maximum benefit for your family’s needs. Apply for the CCB to secure a brighter future for your children and their well-being.
