On Parliament Hill

Regular exercise is essential to a child’s successful development and gets them started on a lifetime of healthy, active living. That’s why our Conservative Government originally introduced the Children’s Fitness Tax Credit (CFTC). This important measure helps make it more affordable for Canadian families to register their kids in fitness activities.

Now our Government is happy to announce that we are doubling the Children’s Fitness Tax Credit amount to $1,000, and we’re making it refundable—making this tax credit more beneficial to low-income families.

These proposed enhancements, which fulfill a commitment made by the Government in 2011, will provide tax relief for Canadian families of about $25 million in fiscal year 2014-2015, and $35 million annually thereafter. The CFTC currently provides tax relief to 1.4 million families who enrol their children in eligible fitness activities. When fully implemented, these enhancements will deliver additional tax relief to about 850,000 families.

The following example illustrates how doubling the credit will benefit a family.

A couple with one child has $950 in eligible expenses in 2014 – including $300 for the child’s fall football program plus $650 for the child’s winter hockey program. Under the current Children’s Fitness Tax Credit, the couple’s tax liability is reduced by $75 (15 per cent of the maximum credit amount of $500). Under the proposed doubling of the credit, their tax liability would be reduced by about $142 (15 per cent of $950).

Our Government proposes to make the Children’s Fitness Tax Credit refundable, effective for the 2015 tax year and subsequent tax years. Making the credit refundable will increase benefits to low-income families claiming the credit.

The example below illustrates how making the credit refundable will benefit a family.

A couple has two children in a soccer program at a cost of $240 per child in 2015. The family’s income is too low and the credit, as it currently stands, is of no benefit to them. By making the credit refundable as proposed, the couple will be better off by $72 ($36 per child based on 15 per cent of $240). The family’s tax refund would include this $72.

Since coming into office, we’ve been committed to helping make life easier for families. That’s why we introduced choice in child care with the Universal Child Care Benefit, slashed the GST twice, introduced the Tax-Free Savings Account and the Children’s Art Tax Credit, and implemented many other important initiatives.

In total, our Government’s low tax plan is saving the average family of four $3,400 per year. And, once the Budget is balanced, we will deliver even more tax relief that helps hard-working families keep more of their hard earned money in their pockets.

By doubling the CFTC and making it refundable, our Conservative Government is helping make life more affordable for hard-working Canadian families.