The Motley Fool

Hooray! If You Have a Child, You Can Get an Extra $300

Image source: Getty Images

Lockdowns, school closures, and stoppage of daycare operations since March 2020 are stressing parents in Canada. Significant adjustments in the home are necessary. Every parent or individual with children is working from home and doing childcare duties at the same time.

The COVID-19 pandemic affects all facets of daily living, most notably, the health and economic aspects. Fortunately, the federal government is fulfilling its promise to support everyone, including parents. Thus, parents are more than thankful for the Canada Child Benefit (CCB) enhancement.

Timely CCB enhancements

Canada spent $2 billion on the emergency enhancement of the CCB in May 2020. Parents who are already receiving the benefit got an extra $300 per child. This one-time boost is on top of the regular May CCB payment. The federal government understands the struggle of parents in coping with the tremendous pressure.

Parents are receiving more money this year since the CCB payments for the benefit year 2020-21 are higher. Starting in July 2020, the maximum annual Canada Child Benefit will increase anew. Those with children below six years old will receive up to $6,765 per child, while parents with children over six to 17 years old will get up to $5,708 per child.

The Canada Revenue Agency (CRA) requires all eligible CCB recipients to file their 2019 tax returns for assessment purposes. The CRA is assessing the entitlement benefits by early September 2020. If you’re unable to file, the CCB payments will stop in October 2020. Also, you must repay the CCB received starting in July 2020.

Extra earnings from parents

Many Canadian parents are not solely reliant on the CCB to pay for food, clothes, and other childcare expenses. You, too, can boost your household income with investment income. A top dividend-payer like NorthWest Healthcare Properties (TSX:NWH.UN) can answer your financial needs and serve as a hedge against inflation.

NorthWest Healthcare is a $1.98 billion real estate investment trust (REIT) that owns and operates a portfolio of high-quality international healthcare real estate infrastructure. You don’t need much seed capital to start investing in the stock. Its current price is only $11.25 per share, while the dividend yield is a high 7.08%.

The CCB pays nearly $12,475 if you have one child under six and another over six. An equivalent amount can purchase around 1,109 worth of NorthWest Healthcare shares. At the given yield, you can generate $883.23 in passive income. With a $50,000 investment, your family income gets a $3,515 boost.

The nature of its rental business is easy to understand. NorthWest Healthcare has partnerships or joint-ventures with established operators of hospitals, medical office buildings, and clinics. Its presence is global. You can find the 183 income-producing properties in Canada, Australia, Brazil, Germany, and New Zealand. More so, you’ll be a quasi-landlord receiving a stable income stream.


The CCB brings a host of advantages to Canadian parents. All recipients receive a single tax payment monthly. Since it is income-tested, low and middle-income families get higher benefits payments. In case you missed the $300 extra or desire to receive the latest enhancements, file your tax return.

Speaking of $300 extra CCB for parents...

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.