April 12, 2022 – Peterborough, Ontario – The cost of living in Canada keeps going up, but so does the cost of working. After paying your mortgage or rent, childcare costs are too often the next biggest ticket item on the family budget.
Provinces across the country, led by all political stripes, have agreed that childcare is an essential service for families, not a partisan issue.
Yet daycare spaces are increasingly hard to come by and centres are not always the best option for every family. Parents on shift-work schedules or working multiple jobs need more than standard business hours for their child’s care.
Canadian parents, especially women, deserve more choices about returning to work. We support choice in childcare because parents understand best how to raise their children. It’s good for families, good for job creation, and good for the economy.
A Jean Charest government will:
- Keep the childcare deals signed with the provinces in place.
- Introduce a Choice in Childcare Tax Credit, based on similar programs in Ontario and Quebec, to replace the Child Care Expense Deduction (CCED) with a more generous, fully refundable, and progressive tax credit, which will:
- Rebate up to 75% of childcare expenses for lower-income families whose children do not use subsidized daycare.
- Make rebates payable monthly so families don’t have to wait for next year’s tax return.
- The tax credit would only be available for expenses for children who are not using the federal-provincial daycare program.
- Recognize that childcare costs don’t just begin after birth. Move eligibility for the Canada Child Benefit to the beginning of the second trimester of pregnancy to give families a financial cushion to prepare for their growing family.
- Make improvements to parental leave to give Canadian families more choice and flexibility, including:
- Eliminate federal income tax on the federal portion of EI benefits during parental leave.
- Eliminate the EI claw-back on up to $20,000 of income earned while on parental leave, allowing parents who choose to work part-time or begin transitioning back to work to do so without penalty.
- Extend the eligibility period for extended parental leave benefits for up to 2 years.
Details of the policy are available here.
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Laurence Tôth, Press Secretary 581 305-4501 firstname.lastname@example.org
Examples for Choice in Childcare Tax Credit:
- A family with an income of $30,000 can currently only claim $1,200. The Choice in Childcare Tax Credit would return them up to $6,000.
- A family with an income of $60,000 can currently only claim $1,200. The Choice in Childcare Tax Credit would return them up to $5,000.
- A family with an income of $120,000 can currently only claim $1,640. The Choice in Childcare Tax Credit would return them up to $4,600.