The federal government is launching the new monthly Canada Child Benefit Wednesday.
It replaces the Canada Child Tax Benefit, the Universal Child Care Benefit and income splitting introduced by Stephen Harper’s Conservative government.
The payments will take in a number of factors including income, how many children are in the household and how old those children are.
Low-income households will receive more money than high-income families, which could mean higher earners could see their monthly benefit shrink, or possibly disappear altogether.
You won’t need to apply for the new benefit if you’ve been receiving child benefits and are up to date on your taxes.
With the new benefit, families will receive as much $6,400 per year for children under the age of six, and up to $5,400 per year for children aged six to 17.
The benefit will be split into 12 monthly payments.
Families with children where the household income is less than $30,000 per year will receive the most money.
— Bill Morneau (@Bill_Morneau) July 18, 2016
The Liberal government says the new benefit is simpler, better targeted to those who need it most.
They estimate 300,000 fewer children will live in poverty in 2017 compared with 2014, due to the revamped benefit.
(Tania Kohut/Global News)