In order to provide new support to caregivers of dependants with a mental or physical infirmity, including spouses, common-law partners and minor children, the Budget proposes a new 15% non-refundable Family Caregiver Tax Credit based on an amount of $2,000 that will apply beginning in 2012.

Caregivers will benefit from the Family Caregiver Tax Credit by claiming an enhanced amount for an infirm dependant under one of the existing dependency-related credits.

The Budget also proposes to increase for 2012 the threshold at which the Infirm Dependant Credit begins to be phased out, so that the enhanced amount is fully phased out at the same income level as the 2012 enhanced Spousal or Common-Law Partner Credit.

Consistent with existing measures, only one Family Caregiver Tax Credit will be available in respect of each infirm dependant.

The $2,000 Family Caregiver Tax Credit amount will be indexed to account for inflation for 2013 and subsequent taxation years.