This document provides an overview of child care costs and policies in Canada. It discusses the high costs of child care in major urban areas and highlights the Quebec model which regulates fees. The federal government provides funding to provinces through transfers like the Canada Social Transfer and Equalization Program. There are issues with a lack of oversight and management of child care subsidies that drives up costs. Political parties like the NDP have proposed plans to adopt a universal child care program based on the Quebec model, but there are concerns about the sustainability of this approach.

1. Child Care Costs –
Affordability - Canada
Paul Young CPA CGA
September 17, 2019

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Supply Chain Management
• SME – Planning and Forecasting
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
• What are Child Care Expenses?
• Child Care expenses / major urban areas
• Quebec Daycare Model
• Federal Government role /Transfers
• Equalization formula / PQ
• Issues with Child Care
• NDP and Childcare
• Trudeau daycare funding / 2019 Election

4. Child Care Expenses
• Child care expenses are amounts you or another person paid to have someone look after an
eligible child so that you or the other person could:
• earn income from employment
• carry on a business either alone or as an active partner
• Attend school under the conditions identified under Educational program
• Carry on research or similar work, for which you or the other person received a gran
The child must have lived with you or the other person when the expense was incurred for the expense to
qualify. Usually, you can only deduct payments for services provided in Canada by a Canadian resident. Read
Other situations for exceptions
Source - https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-
your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-214-
child-care-expenses/line-214-what-child-care-expenses.html

5. Child Care
Expenses / Canada
Source -
https://globalnews.ca/news/509725
4/canada-affordable-child-care-
world/beta/?utm_expid=.kz0UD5JkQ
OCo6yMqxGqECg.1&utm_referrer=ht
tps%3A%2F%2Fwww.google.com%2F
or
https://www.cbc.ca/news/business/
childcare-costs-canada-1.5008106

6. Quebec Daycare model
Source – Fraser Institute

7. Federal government provides transfers to the
provinces
Canadian Social Transfers and Equalization transfers

8. Equalization / PQ
Source - https://montrealgazette.com/news/quebec/equalization-is-part-of-the-original-deal-and-quebec-will-fight-to-keep-it-says-premier-legault

9. Issues with Child Care
• Auditor – City of Ottawa “"Major lapses" in the administration of child-care subsidies
to Ottawa families costs the city more than $1.5 million per year and prevents some
families from accessing affordable care for their kids, according to auditor general Ken
Hughes. The city is supposed to review a family's eligibility for a child-care subsidy at least
once per year. But the reviews were halted in 2014 and only resumed in 2016, leaving a
backlog of 2,810 cases. ”Source -
https://www.cbc.ca/news/canada/ottawa/mismanagement-child-care-subsidies-costing-
city-audit-1.4426337
• Lack of inspection when it comes to daycare facilities -
https://www.thestar.com/news/canada/2014/12/09/auditor_general_raps_liberal_govern
ment_for_tardy_daycare_inspections.html
• Ontario implemented a very costly full-day kindergarten model -
https://www.thespec.com/news-story/2233690-drummond-report-recommends-sweeping-
education-reforms/ (This was liberal way of handling child care)

10. NDP and Childcare
•
• http://findingqualitychildcare.ca/who-is-responsible
• Mulcair Daycare Policy
• http://ottawacitizen.com/news/politics/tom-mulcair-on-the-details-of-the-ndps-child-care-policy
• FYI – Mulcair estimates 70,000 people will return to work. If so, where is his analysis/risk management impact from his tax policies
- http://www.slideshare.net/paulyoungcga/mulcair-vs-harper? Mulcair’s only focus is on small business - http://www.cme-
mec.ca/?lid=JCKNC-E742G-1W6JA&comaction=show&cid=HRH7K-9UE34-ACUS8. http://canadianentrepreneurtraining.com/six-
statistics-about-small-business-and-entrepreneurship-in-canada/. Typically small businesses pay less money than medium to large
business. So, why does Mulcair never discuss salaries issues? It seems to me that like all Mulcair policies that he inflates the number
like he did with the federal minimum wage numbers, right? http://www.slideshare.net/paulyoungcga/federal-minimum-wage-
canada
• Canada Social Transfer Programs
• The Federal government provides transfer as part of the social transfer agreements between the federal government and the
provinces - http://www.fin.gc.ca/fedprov/cst-eng.asp
•
• Funding
• http://www.slideshare.net/paulyoungcga/provincial-transfers-and-program-spending or http://www.fin.gc.ca/access/fedprov-
eng.asp#Major
• Harper formed his first government February 6, 2006 as such transfers were 8.4B to the provinces for CST. Harper continued to fund CST as such
the amount close to 13B.
• The average cost of subsidized daycare is $23/day - http://ottawacitizen.com/news/national/the-child-care-conundrum-part-3-who-will-pay-
and-how-much-for-universal-day-care.
• Mulcair wants to use the Quebec model, but it has been a failure - http://www.nationalpost.com/news/story.html?id=5a5e1555-093f-4959-9395-
028c36daadc7&p=2
• Auditor General of Ontario Report - http://www.auditor.on.ca/en/reports_en/en14/302en14.pdf

11. Trudeau and Daycare
Source - https://www.huffingtonpost.ca/entry/trudeau-doug-
ford_ca_5d7fba58e4b03b5fc887711d
• Trudeau is getting throwing money at the
symptoms by calling out Ford
• There have been issues with delivering of
healthcare dollars including proper
oversight
• All levels of government are involved as
part of delivery healthcare
• Eligibility of daycare has come into
question (lack of oversight)
• PQ gets the lion share of equalization
despite have a strong economy and
budget surplus -
https://ca.reuters.com/article/domestic
News/idCAKBN1O226A-OCADN
• Many provinces are struggling with fiscal
management
• Liberals never discuss efficient
government, because they do not operate
an efficient government -
https://www.slideshare.net/paulyoungcg
a/2019-election-public-sector-efficiency-
canada-july-2019