O’Toole highlights childcare tax credit as Canada’s election nears

As Canada’s election deadline approaches, Conservative Leader Erin O’Toole detailed his promise to replace the tax deduction parents can claim for childcare expenses with a refundable tax credit during a campaign stop in Russell, Ont.

The party says its proposal would benefit lower-income Canadians the most by allowing them to receive up to $6,000 of their annual child-care expenses reimbursed.

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Parents would be able to claim up to $8,000 of eligible annual expenses per child under seven years old and up to $5,000 per child between the ages of seven and 15.

Canada’s lowest-income families would have up to 75 per cent of those costs covered, and as incomes rise, the percentage would drop to a minimum of 26 per cent.

The Tories say because the tax credit is refundable, lower-income families would get the full amount reimbursed even if it pushes their tax bill below zero.

The party says the current child-care expense deduction benefits the rich because parents who earn the most get the highest deductions.