The Government of Canada had a pretty great celebration in store for the Child Care Benefit’s (CCB) seventh birthday. Introduced in 2016, the tax-free income source provides low to middle-income families with children with help for the cost of raising children.
Yet this year, things got even better. So, if you’re a parent, make sure to keep an eye out on August 18. A new, higher benefit is coming your way. Again.
What happened?
The CCB had a major increase for the 2023 to 2024 year. Starting in July, Canadian families can receive up to $6,275 per child each year from aged six to 17 and up to $7,437 per child under six. This was a huge move and one the government decided on to keep pace with inflation.
The 6.3% increase from the year before comes out on a monthly basis. Therefore, if you have one child, with a maximum of $7,437, that comes to $619.75 each and every month! That being said, not every Canadian will receive the benefit.
How much you could get
The CCB is calculated based on how many children you have, their ages, and how much your household earned in the last tax year. If you made it under the adjusted family net income (AFNI) of $34,863, you will receive the maximum benefit for your children.
However, if you make above that amount but below $75,537, you will receive 13.5% lower than the income that is greater than $34,863. Make higher than $75,537, and it’ll be even lower, with a reduction of $5,491 plus 5.7% of your income greater than $75,537.
For this article, let’s go with the averages. Canadian households earn an average of $66,800 as of 2022. The average family has two children. Let’s say you have one child below six and one over. Here is what you would earn below.
Household Income
Amount Over $34,863
Deduction of 13.5%
First Child Under Six
Second Child Over Six
Total Amount
Total Annual Payment After Deduction
$66,800
$31,937
$4,311.50
$7,437
$6,275
$13,712
$9,400.50
How to use it!
The best way to use this cash is to invest what you can into your child’s future. That would be through a Registered Education Savings Plan (RESP). Even if your child doesn’t go to secondary education, they can still use it later on. What’s more, parents can take advantage of the Canada Education Savings Grant. In this case, for the first $2,500, the government pays an additional 20%. So, $2,500 could bring in an additional $500 for your child!
With this amount, you could easily put $2,500 towards each child and still have some left over. I would recommend investors think long term in most cases, but especially for long-term education. A great option would be essential services or financial institutions offering dividend income.
For example, if you were to invest in Toronto-Dominion Bank (TSX:TD), you could see that $2,500 rise at a compound annual growth rate (CAGR) of 6.2% based on the last decade. Plus, you’ll receive additional income from dividends. That currently sits at $3.84 per share annually. This, too, can be used to reinvest back into your child’s investments.
So, make sure to check your bank accounts and mail this August 18! There could be a massive cheque waiting for you and 10 more coming your way.
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
