ARCHIVED – Children's Special Allowances

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ARCHIVED – Children's Special Allowances


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  1. What are Children's Special Allowances?
  2. What is meant by agency?
  3. What is changing for the CSA?
  4. Why is this change being made?

1. What are Children's Special Allowances?

In general terms, Children's Special Allowances (CSA) are tax-free monthly amounts paid to an agency for a child who is under the age of 18, physically resides in Canada, and is maintained by an agency.

2. What is meant by agency?

By "agency", we mean:

  • a federal, provincial or territorial government department or agency, an agency appointed by a province or territory to administer a provincial or territorial law for the protection and care of children, ; or,
  • an institution licensed or otherwise authorized by a province or territory to have the custody or care of children.

3. What is changing for the CSA?

For 2012 and subsequent years, the budget proposes to provide for the payment of a CSA to an agency in respect of a child who is a former Crown ward and who has been placed in the custody of a legal guardian, tutor (in Quebec) or a similar caregiver and the agency provides financial assistance for the maintenance of the child.

4. Why is this change being made?

It is increasingly common for Crown wards to be placed in the care of a guardian, tutor or similar caregiver as an alternative to foster care. In many instances, these caregivers receive financial assistance from an agency to support the needs of the child. This financial assistance renders the caregiver ineligible for certain income tax credits, deductions, or benefits such as the Universal Child Care Benefit.

At the same time, when an agency transfers custody of a child to a guardian, tutor or similar caregiver, the agency becomes ineligible to receive CSA payments in respect of the child.

The proposal would ensure that an agency receives the CSA in respect of a child that it continues to financially support even if the child has been released to the care of a court-appointed guardian, tutor or similar caregiver.

Date modified:
2015-07-15