2006 Federal Budget Tax Changes

Child Disability Benefit

Effective for the payment period beginning July 2006, the Child Disability Benefit component of the Canada Child Tax Benefit will be increased from $2,044 to $2,300 per child. The percentage at which the benefit is phased out when family net income exceeds $36,378 will also be reduced to 2% for families with one disabled child and 4% for families with more than one disabled child. Previously, the phase-out rates were 12.2%, 23% and 33% for one, two and three or more disabled children respectively.

As the result of the reduction in the phase-out rate, the income level at which the phase out ends has been increased to $151,378 for a family with one or two disabled children. It has been increased to $208,878 for families with three or more disabled children.

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