The federal government has introduced a new income-splitting benefit for couples with children under the age of 18 as part of a series of proposed new tax measures designed to appeal to young families.
The proposal consists of three new measures, including the Family Tax Cut, which will allow a higher earning spouse to transfer up to $50,000 of taxable income to a spouse in a lower income bracket. The measure will provide eligible families with a maximum of $2,000 a year in tax relief.
The Universal Child Care Benefit for children under the age of 6 will also be increased from $100 to $160. A well, a new benefit of $60 per month is being created for children aged six to 17, and will come into effect on Jan 1.
The third new measure will see a $1,000 increase in the maximum amount that can be claimed under the Child Care Expense Deduction.
Prime Minister Stephen Harper announced the new measures Thursday afternoon at a community centre in Vaughan, Ont., just north of Toronto.