The 2018 Federal Budget was tabled this week and had a few small provisions that could help Canadian families. Here are the five things families need to know:
1. The Canada Child Benefit will be indexed to inflation starting July 2018.
2. In the previous budget you were able to take additional time off for parental and caregiver care and get the EI Caregivers Benefit. This has now been extended to include maternity and sickness benefits.
3. You will be able to open an RESP and claim the $500 per year Canada Learning Bond at the same time that you apply for a birth certificate for your child. This will automatically enroll children born into low-income families for the Bond.
4. As of June of 2019, the government will offer five additional weeks of “use-it-or-lose-it” EI Parental Sharing Benefits when both parents commit to sharing parental leave. It’s available to all two-parent families, including adoptive and same-sex couples. If you’re going for the standard parental leave option of 55% of EI benefits over 12 months, you’ll have a total of 40 weeks of leave instead of just 35. As well, where families have opted for extended parental leave at 33% of earnings for 18 months, the second parent would be able to take up to 8 weeks of additional parental leave.
5. The CPP death benefit is now $2,500 for all eligible contributors (whereas before it was pro-rated), which should help alleviate some of the stress during a difficult time.
MORE ABOUT TAXES:
- 15 ways Budget 2018 will affect your wallet
- Why Canada must simplify the tax code
- A tax cage match: government vs your savings
- Capital gains tax when selling a rental property
- Should I withdraw from my RRSP to contribute to a TFSA?
- Coming clean to the CRA
- How to ‘find’ cash for your RRSP contribution
- Transfer assets to your TFSA with minimal tax impact