What is Canada Child Benefit?

Raising children can be expensive, and for newcomers to Canada, understanding the available financial support is essential for settling in and building a stable future. The Canada Child Benefit (CCB) is one of the most significant government programs, providing tax-free financial assistance to families to help with the cost of raising children under 18. Administered by the Canada Revenue Agency (CRA), the CCB is a lifeline for low- and middle-income families, ensuring they can provide for their children’s needs.

For immigrants and newcomers, the Canada Child Benefit can ease financial pressures while supporting children’s education, healthcare and well-being. With more than $25 billion distributed annually to Canadian families, according to the CRA, the program highlights Canada’s commitment to supporting families and reducing child poverty. This guide will explain the Canada Child Benefit, its eligibility requirements and how to apply, ensuring newcomers can access the benefits they deserve.

What is the Canada Child Benefit?

The Canada Child Benefit is a tax-free monthly payment provided to eligible families to help with the cost of raising children. The amount of the benefit is determined by factors such as:

• The number of children in the family.
• The age of each child.
• The family’s net income as reported in their tax return.

The CCB is designed to provide more support to families with lower incomes, ensuring the funds are distributed to those who need them most. The benefit is adjusted annually to account for inflation.

Who is eligible for the Canada Child Benefit?

To qualify for the Canada Child Benefit, you must meet the following criteria:

• Residency: You must be a resident of Canada for tax purposes.
• Primary caregiver: You are responsible for the care and upbringing of the child, including daily activities, healthcare and supervision.
• Child’s age: The child must be under the age of 18.
• Legal status: You must have valid immigration status, such as permanent resident, refugee, or temporary resident with at least 18 months in Canada.

Newcomers should ensure their residency status and tax filings are up to date to qualify for the benefit.

How much can you receive from the Canada Child Benefit?

The Canada Child Benefit is based on your family’s adjusted net income and the number of children you have. For the 2024-2025 benefit year, the maximum annual payment per child is:

• $7,787 for children under 6 years old.
• $6,570 for children aged 6 to 17.

Families with lower incomes receive higher payments, while those with higher incomes may see reduced amounts. Payments are made monthly, and the benefit is recalculated each July based on your previous year’s tax return.

For example, a family with two children under 6 years old and a net income of $35,000 could receive up to $15,574 annually to help cover essential costs like housing, food and childcare.

How to apply for the Canada Child Benefit

Applying for the Canada Child Benefit is straightforward, and newcomers can apply as soon as they meet the eligibility criteria. Here are the steps:

• Complete the application: Apply online through the CRA’s My Account portal or submit Form RC66, Canada Child Benefits Application.
• Provide supporting documents: Newcomers may need to provide proof of residency and immigration status, such as a permanent resident card or confirmation of permanent residence.
• File your taxes: Ensure you and your spouse or partner file your tax returns every year, even if you have no income. The CRA uses your tax information to calculate your benefit.

Once approved, payments are typically issued on the 20th of each month.

Additional benefits under the Canada Child Benefit

In addition to the regular CCB, families may qualify for supplementary benefits:

• Child disability benefit (CDB): An additional payment for families caring for a child with a disability.
• Provincial and territorial programs: Many provinces offer their own child benefit programs that complement the CCB, such as the Ontario Child Benefit and Alberta Child and Family Benefit.

Newcomers should check with their province to explore additional supports available.

How the Canada Child Benefit helps newcomers

For immigrants and newcomers, the Canada Child Benefit provides essential financial relief, helping cover the costs of raising children as families establish themselves in a new country. The benefit can help with:

• Purchasing food, clothing and school supplies.
• Covering childcare expenses while parents work or study.
• Supporting recreational and extracurricular activities for children.

The CCB is particularly impactful for newcomers, who may face financial challenges during their first few years in Canada while adapting to a new environment and workforce.

How Windmill Microlending supports newcomers

While programs like the Canada Child Benefit provide vital support to families, many newcomers still face barriers to restarting their careers in Canada. At Windmill Microlending, we help internationally trained professionals overcome financial challenges by providing affordable loans of up to $15,000. These low-interest loans can be used to cover costs such as:

• Licensing exams and credential assessments.
• Training programs and certifications.
• Short-term living expenses while preparing for employment.

By empowering skilled newcomers to re-enter their professions, Windmill Microlending helps families build financial stability and contribute to Canada’s economy.

Learn more about how Windmill Microlending can help you achieve your career goals and secure a brighter future for your family. Visit Windmill Microlending.