Financial Impacts of Budget 2016 Measures on Selected Families with Children - Ottawa, Canada - 2 June 2016

Sep 19, 2026

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Parliamentary Budget Officer (PBO) estimates the financial impact of Canada’s Budget 2016 measures on eight representative family types with children, defined by income levels and children’s ages. The analysis focuses on how tax-rate changes, repeal of the Family Tax Cut credit, changes to Children’s Fitness and Arts credits, and replacement of universal child benefits reshape household disposable income. Corrections to child benefit and tax credit calculations are noted, affecting reported changes for specific families.

LanguageEnglish

CategoryGeneral

FormatPDF

Pages22

Reading Time8 min

AccessFree to download

Executive Summary

1. Introduction

2. Budget 2016 Measures

3. Estimated Impact

Appendix A: Detailed Budget 2016 Measures

Appendix B: Assumptions and Methodology

Notes

Financial Impacts of Budget 2016 Measures on Selected Families with Children Ottawa, Canada 2 June 2016 [www.pbo-dpb.gc.ca](www.pbo-dpb.gc.ca) The mandate of the Parliamentary Budget Officer (PBO) is to provide independent analysis to Parliament on the state of the nation’s finances, the Government’s estimates and trends in the Canadian economy; and, upon request from a committee or parliamentarian, to estimate the financial cost of any proposal for matters over which Parliament has jurisdiction. In response to a request by the Member of Parliament for Elgin-MiddlesexLondon, Mrs. Karen Vecchio, the PBO has prepared estimates of the financial impact of the Budget 2016 measures for the requested eight types of families with children. This report was prepared by the staff of the Parliamentary Budget Officer. Helen Lao and Carleigh Malanik wrote the report. Mostafa Askari, Jason Jacques, Mark Mahabir and Chris Matier provided comments. Patricia Brown and Jocelyne Scrim assisted with the preparation of the report for publication. Please contact [pbo-dpb@parl.gc.ca](pbo-dpb@parl.gc.ca) for further information. Jean-Denis Fréchette Parliamentary Budget Officer Correction notice: this report published June 2, 2016 has been revised to correct an error in the calculation of the Canada Child Tax Benefit that increases pre-measures transfer income by $61 per year for Families 1 through 4. Corrections to the Family Tax Cut Credit amount were also made, affecting the change in taxes payable for families 5 and 6. Clarification of the Budget 2016 tax measures for the Children’s Arts and Fitness Tax Credits have also been added. Table of Contents Executive Summary 1 1. Introduction 3 2. Budget 2016 Measures 5 3. Estimated Impact 6 Appendix A: Detailed Budget 2016 Measures 15 Appendix B: Assumptions and Methodology 17 Notes 19 Financial Impacts of Budget 2016 Measures on Selected Families with Children Executive Summary The Member of Parliament for Elgin-Middlesex-London, Mrs. Karen Vecchio, requested the PBO to provide an analysis of the impact of Budget 2016 measures for eight types of families with children: • Family 1: Two-income family with two children aged five and under. One earns $20,000 and the other earns $54,000 . • Family 2: Two-income family with two children aged 10 and 12. One earns $20,000 and the other earns $54,000 . • Family 3: One-income family with two children aged five and under. Employment income: $89,000 . • Family 4: One-income family with two children aged 10 and 12. Employment income: $89,000 . • Family 5: Two-income family with two children aged five and under. One earns $60,000 and the other earns $120,000 . • Family 6: Two-income family with two children aged 10 and 12. One earns $60,000 and the other earns $120,000 . • Family 7: One-income family with two children aged five and under. Employment income: $250,000 . • Family 8: One-income family with two children aged 10 and 12. Employment income: $250,000 . These families are not necessarily representative of the population. The Budget 2016 measures analyzed for the families in this report include the: 1. Change in personal income tax rates 2. Repeal of Family Tax Cut credit 3. Change in the Children’s Fitness and Children’s Arts tax credits 4. Replacement of the Universal Child Care Benefit and Canada Child Tax Benefit by the Canada Child Benefit 5. Adjustment of the Charitable Donation tax credit PBO estimates the change in household disposable income as a measure of impact from the Budget 2016 measures for the families. In this report, PBO measures disposable income as the total income (employment income and transfer income) that remains after the deduction of federal taxes and tax credits. Summary Table 1 Financial Impacts of Budget 2016 Measures on Selected Families with Children PBO estimates that the Budget 2016 measures will increase disposable income for

FAQs

Who requested the analysis and which families were included?

The Member of Parliament for Elgin-Middlesex-London, Mrs. Karen Vecchio, requested the PBO to analyze eight types of families with children. The families differ by number of income earners, income levels, and children’s ages.

Which Budget 2016 measures were analyzed in the report?

The report analyzes changes to personal income tax rates, repeal of the Family Tax Cut credit, changes to Children’s Fitness and Children’s Arts tax credits, replacement of Universal Child Care Benefit and Canada Child Tax Benefit with the Canada Child Benefit, and adjustment of the Charitable Donation tax credit.

How does the report define and use “disposable income” to measure impact?

PBO measures disposable income as total income (employment income plus transfer income) remaining after deducting federal taxes and tax credits. Changes in this measure are used to assess the impact of Budget 2016 measures.

Sep 19, 2026

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