How newcomer parents in Canada are supported through the Canada Child Benefit

This week saw yet another payout of the Canada Child Benefit (CCB) to couples in Canada with at least one child under the age of 18.

The CCB is a payment from the Canadian government for as much as $619.75 CAD per month for each child under the age of 6, and $522.91 CAD for each child between the ages of 6-17 years of age.

A recent study by Statistics Canada investigated the benefits and effects to newcomer couples and families in Canada who received the CCB, with added information on why some couples received the payment, while others did not.

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What is the CCB?

The CCB is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years old. For new permanent residents (PRs) arriving in Canada with children, the CCB can be an essential source of income that helps ease the financial burden associated with settling in a new country. The eligibility for CCB is largely determined by residency status and income levels, both of which are verified through tax filings and other employment records.

CCB uptake among new PR Couples

Statistics Canada’s study investigated CCB take-up rates among newly landed PR couples from 2016 to 2019. It shows that a significant majority of these couples received the benefit. Specifically, the analysis revealed that between 79% and 85% of such couples received the CCB in the year following their arrival.

However, the receipt of the CCB is closely tied to whether or not the couple has a known employment history in Canada, which is generally indicated by the presence of a T4 employment income record, or the filing of a T1 income tax return. For example, among couples where at least one spouse had paid employment income, the CCB take-up rate was exceptionally high, ranging from 93% to 95%. This suggests that those PR couples who are actively employed are more likely to meet the residency requirements necessary to qualify for the CCB.

In contrast, couples with no employment income or who did not file a T1 tax return had a much lower likelihood of receiving the CCB, with take-up rates falling below 10% for those without T1 or T4 records. This may indicate that these couples are not residing in Canada or may not have completed the necessary steps to establish eligibility for the benefit, even if they are present in the country.

Implications for newcomers

Receiving the CCB depends greatly on filing a T1 tax return or having a T4 record.

This is relevant because the CCB can be an act as an economic buffer for many new PRs. For example, payments of the CCB begin to decrease if a family’s adjusted net income exceeds $36,502 CAD

When annualizing CCB payments, newcomer couples in Canada can earn up to

• $7,787 per year for each child under 6 years of age; and/or
• $6,570 per year for each child between 6 to 17 years of age.

For a couple earning $36,502 CAD per year, this CCB can add between 18-20% to their annual income, underlying how impactful this payment can be.

Additionally, the study notes that CCB payments can be issued retroactively. This means that even if there is a delay in receiving the CCB after landing in Canada, eligible families can still receive payments for the months they were entitled to it but did not initially receive the benefit.

How to apply for the CCB

Parents of a newborn, can apply for the CCB using the Automated Benefits Application, by accessing the “Apply for child benefits” section under their personal Canadian Revenue Agency (CRA) account, or by mailing the RC66 Canada Child Benefit Application to their nearest tax center.

Additionally, newcomers must complete and include Form RC66SCH, Status in Canada and Income Information, with their application if any of the following situations apply to them or their spouse or common-law partner:

• They became a resident of Canada (e.g., a newcomer or a returning resident) within the last 2 years;
• They obtained Canadian citizenship within the last 12 months;
• They are a permanent resident, protected person, or temporary resident who has lived in Canada for the past 18 months, as defined under the Immigration and Refugee Protection Act; and
• They are not a Canadian citizen but are registered or entitled to be registered under the Indian Act.

If the CRA has not previously paid benefits to a newcomer or their spouse for their child, they must also provide proof of birth, which should include the child’s last name, given name, and date of birth. For more information on what documents may be included in support of a CCB application, click here.

Newcomers should also note that they will need a Social Insurance Number (SIN) to access the CCB and other government benefit programs.

For a full list of payment dates for the CCB and other government programs, click here.

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