Québec economic update: tax relief to large families


Beginning in 2019, the child assistance payment will be renamed "family allowance.

Québec's Minister of Finance, Éric Girard, has tabled his government's economic and budget update. The new government has announced measures to ease the tax burden for families and to help seniors.

Increase in the maximum amount of the child assistance payment granted for second and third children
Beginning in 2019, the child assistance payment will be renamed "family allowance." The maximum amount granted for second and third children will be increased by $500, from $1,235 to $1,735 in 2019 for each child and will continue to be indexed after 2019. Payment of the increased amount will begin in April 2019.

Freeze on the additional contribution for childcare
The government is proposing to freeze the additional contribution payable by parents whose children attend a subsidized childcare at the 2018 amount starting in 2019. Thus, the additional contribution will be $0.70 for families with an income of $52,220 to $78,320, and gradually increase to $13.90 for a family income of $166,320. Parents can benefit from the freeze when they file their 2019 income tax return, and parents who have chosen to include the additional contribution in their source deductions will see savings throughout 2019.

Introduction of a refundable tax credit for senior assistance
Beginning in 2018, the government is proposing a new refundable tax credit for senior assistance for people aged 70 or older and who reside in Quebec. The maximum amount of this tax credit is $200 per eligible individual and will be reduced by 5% starting at a family income of $22,500 when one spouse is eligible, and $36,600 when both spouses are eligible. To receive the credit, the individual and their spouse, if applicable, must file an income tax return for the year. The tax credit will be indexed annually as of 2019.

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