The Canada Child Benefit and Canada Learning Bond Eligibility

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Following the introduction of the Canada Child Benefit (CCB) and elimination of the National Child Benefit Supplement (NCBS) in 2016, eligibility for the Canada Learning Bond (CLB) was updated in December, through amendment of the Canada Education Savings Act. New CLB eligibility criteria will be in effect by July 1, 2017. The NCBS ceased to be paid July 1, 2016.

For families with more than three children, a formula to calculate CLB eligibility based on adjusted net family income and the number of children has been introduced.

 

Adjusted Net Family Income

This is defined by CRA as a family’s net income minus any universal child care benefit (UCCB) and registered disability savings plan (RDSP) income received plus any UCCB and RDSP amounts repaid.

 

CLB Eligibility for families with up to three children

For families with up to three children, CLB eligibility is similar to before. Families with up to three children could be eligible for the CLB if their adjusted net family income is less than or equal to the lowest income tax threshold ($45,282 in 2016, $45,916 in 2017).

 

CLB Eligibility for families with more than three children

Families with more than three children could be eligible for the CLB if their adjusted net family income is less than the amount determined by a new formula. For math fans, the formula is as follows ($ figures are for 2017 year):

A + [(B + C + (D x E)/Y]

 

A = F – (B/0.122)

B = $2,341

C = $2,071

D = $1,970

E = number of qualified dependants in excess of 2

F = lowest income tax threshold

Y = 0.333

 

CLB-Eligible Income Levels 2017

CLB-eligible adjusted net family incomes are as follows:

 

Number of children Adjusted net family income 2017

1 – 3

 Less than or equal to $45,916

4

 Less than $51,809

5

 Less than $57,724

6

 Less than $63,640

7

 Less than $69,556

8

 Less than $75,472

9

 Less than $81,388

10

 Less than $87,304

11

 Less than $93,220

12

 Less than $99,136

13

 Less than $105,052

14

 Less than $110,968

15

 Less than $116,884

16

 Less than $122,800

Source: Canada Education Savings Program, Information Bulletin CESP/PCEE-2016/17-007-702, Canada Learning Bond (CLB) eligibility criteria amendments, December 23, 2016