Government of Canada's Plan for a Strong Middle Class Receives Royal Assent
June 23, 2016 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is committed to bringing real change to Canadians in every stage of their lives—helping our children, helping our parents and helping our grandparents. Budget 2016: Growing the Middle Class provides an economic blueprint that puts people first, strengthens the middle class and makes smart, necessary investments to grow the economy today, while positioning Canada as a leader in the world of tomorrow.
Finance Minister Bill Morneau today welcomed Royal Assent of the Budget Implementation Act, 2016, No. 1, which puts into action many of the Budget's key measures designed to help the middle class and those working hard to join it, including more generous child benefits, and help for the most vulnerable seniors.
With the passage of this Act, nine out of ten families with children will begin to receive bigger cheques next month—totalling $2,300 a year more, on average—as a result of the new Canada Child Benefit (CCB). Compared to the child benefit system it replaces, the CCB is simpler, fully tax-free, better-targeted to those who need it most, and more generous for the large majority of families. This means parents will have more money in their pockets this summer to sign up their children for summer camp or help cover the cost of groceries. In addition to providing much-needed support for middle class families, the targeted benefit will lift hundreds of thousands of children out of poverty.
The Act also ensures that more seniors will be afforded a dignified and secure retirement through the increase in the Guaranteed Income Supplement (GIS) top-up benefit for the most vulnerable single seniors, helping 900,000 seniors make ends meet, and it restores the age of eligibility for Old Age Security and the GIS to 65 from 67. Like the CCB, increased supplements will arrive this July.
Finally, the Act makes changes to Canada's Employment Insurance program, adding to a growing list of achievements this Government has made on behalf of the middle class, including raising taxes on the wealthiest in order to cut them for those who need it, a 50% increase in student grant amounts and a federal/provincial agreement to strengthen the Canada Pension Plan so that future generations can achieve their goal of a strong, secure and stable retirement.
"Our Government knows that a strong economy starts with a strong middle class. When Canadians at all stages of their lives have more money in their pockets to save, invest and grow the economy, everyone benefits. With our Government's Budget plan now signed into law, we've set the stage for what's to come—confident families, a resilient and innovative economy, clean air, more efficient cities and a better quality of life."
– Bill Morneau, Minister of Finance
- Backgrounder on Key Measures Included in Budget Implementation Act, 2016, No. 1
- Budget 2016: Growing the Middle Class
- Budget Implementation Act, 2016, No. 1
- Bill C-15 - Budget Implementation Act 2016, No. 1 - Overviews
Office of the Minister of Finance
Department of Finance Canada