In the recently reintroduced 2011 federal Budget the Canadian government has announced its new children’s arts tax credit. According to that parents can claim money spent on programmes focusing on fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture and tutoring, among others and this credit is non-refundable. The Parliament is yet to legislate for the children’s arts tax credit.
It has also been declared that parents whose children participate in paid artistic, cultural, recreational, and developmental programmes will now enjoy the same benefit as parents whose children participate in paid programmes of physical activity and children’s fitness tax credit is currently available for those participating in a prescribed fitness activity.
A maximum amount of up to CAD500 (USD715) of the programmes’ cost could be claimed under this credit. The new arts tax credit will provide for. This is expected to save as much as CAD75 per child in a family. The credit will be calculated by multiplying the lowest personal income tax rate (15% in 2011) by the eligible amount for each child.
A package of reforms has also been introduced at the Budget by the Canadian parliament recently. The package includes a rise in the Guaranteed Income Supplement for vulnerable pensioners, greater financial assistance to students and those on disability benefits.
