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The universal child care tax benefit will jump to $160 per month per child under the age of 6, up from $100, and introduce a new benefit of $60 per month for children aged six to 17. It replaces the child tax care credit — it amounted to tax relief of up to $338 per child in 2014 — so it’s a net benefit to all families.

Families who use childcare will also be getting an increased allowable deduction. The maximum childcare deduction would increase to $8,000 from $7,000 per child under age seven; to $5,000 from $4,000 for each child seven to 16; and to $11,000 from $10,000 for children eligible for the disability tax credit.

“You’ve got a lot more people benefiting and that makes it a lot more expensive, but it diffuses a lot of the criticism,” said Mr. Poschmann.

Ottawa also previously announced it was doubling the maximum amount of expenses allowed under the Children’s Fitness Tax Credit to $1,000 and making it refundable. Making it refundable guarantees even if those who don’t pay income tax will benefit.

“It’s $1,000 [but the credit] is for 15% so it’s worth another $75,” said Jamie Golombek, managing director of tax and estate planning at Canadian Imperial Bank of Commerce.

Mr. Golombek says while the income-splitting might not have gone as far as some had wished, it is offset by the combination of other changes like allowing a higher deduction on childcare.

“Many families know they are spending more on childcare than is allowed on deduction and not able to recoup the entire amount [they pay for child care],” he says.

He says from a policy perspective it might be time ask what the government hopes to accomplish with a universal child care benefit that is not income tested.

“You have to ask yourself if it’s fair because it gives everybody the same amount of money whether they are rich or poor for kids but on the other hand is the question of whether we use our tax system to redistribute income to those who need it the most,” said Mr. Golombek.

And what of all those Canadians who don’t have any kids? “That’s a much bigger debate,” said Mr. Golombek.

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