The Ontario government this morning unveiled what it is calling, "one of the most flexible childcare initiatives ever introduced in Ontario,"
Called the new Ontario Childcare Access and Relief from Expenses (CARE) tax credit, it was announced by Vic Fedeli, Minister of Finance, and Lisa Thompson, Minister of Education.
The credit would provide about 300,000 families with up to 75 per cent of their eligible child care expenses, and allow families to access a broad range of child care options, including care in centres, homes, and camps.
"The CARE tax credit would be one of the most flexible childcare initiatives ever introduced in Ontario. It is a plan to put parents, and not the government, at the centre of the child care decision-making process," said Fedeli. "We want parents to be able to choose the kind of care that is best for their children so that they can go to work, run a business, or study to acquire new skills."
Beginning in the 2021 tax-year, Ontario would give families the choice to apply for and receive more timely support through regular advance payments during the year. This credit will allow parents to offset child care expenses they may incur when starting a new job, taking on longer hours, or going back to school.
The CARE tax credit would be on top of the existing Child Care Expense Deduction and focus benefits on low- and middle-income families. Families could receive up to $6,000 per child under seven years of age, up to $3,750 per child between the ages of seven and 16, and up to $8,250 per child with a severe disability.
The government has also committed up to $1 billion over the next five years to create up to 30,000 child care spaces in schools, including approximately 10,000 spaces in new schools in the 2019 Ontario Budget.
"Today's announcement will make child care for Ontario families more affordable and more accessible," said Thompson. "Our changes will ensure parents have the choice and flexibility to make the best decisions for their family."
The CARE tax credit would support families with incomes of up to $150,000.
Parents would need to keep receipts for the child care expenses they incur
