Appeal Number 2024-0001 Part C – Decision Under Appeal The decision under appeal is the Ministry of Education and Childcare (the ”Ministry”) reconsideration decision of December 14, 2023 that denied the Appellant’s request for the Affordable Child Care Benefit beginning August 1, 2023 because the Appellant’s family adjusted annual income is too high.
Part D – Relevant Legislation Child Care Subsidy Act Section 4 (“Act”) Child Care Subsidy Regulation Sections 7, 8, 9 and Schedule A (“Regulation”)
Relevant legislation is included in Appendix A.
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Part E – Summary of Facts From the Ministry’s files:
Appeal Number 2024-0001
On June 20, 2023, an Affordable Child Care Benefit Application was received at the Child Care Service Centre that was signed and dated by the Appellant on June 16, 2023 and signed and dated by the Appellant’s spouse on June 20, 2023. The Appellant and her husband agreed to the Ministry contacting the CRA to secure income tax information for the past two years.
On November 9, 2023, the Appellant’s family was denied the Affordable Child Care Benefit as it was determined that the Appellant family's adjusted 2022 annual income, as reported by the CRA to the Ministry, was too high based on the maximum threshold under the Child Care Subsidy Regulation (Regulation.)
On November 28, 2023, a request for a reconsideration of that decision was received at the Child Care Service Centre and subsequently received at the Reconsideration Branch on November 28, 2023.
On November 28, the Appellant also submitted an Affordable Child Care Benefit – Special Needs form (CF2951) that had been completed by a Certified Speech Pathologist. The Certified Speech Pathologist confirmed that the Appellant’s child has a physical, intellectual, emotional, communicative or behavioural impairment and requires additional support services because of that impairment and would continue to require additional support services until their 19th birthday.
On December 14, 2023, the Ministry completed its review of the Appellant’s request and noted that it had not received a 2022 reassessment of income for the Appellant’s husband. The Ministry also contacted the CRA directly and was advised that the CRA did not have record of completing a reassessment of 2022 income for the Appellant’s husband. Accordingly, the Ministry confirmed its original decision because the family unit’s 2022 annual adjusted income was higher than the maximum threshold of $111,000 permitted under the Regulation to receive a maximum or partial subsidy of the Affordable Child Care Benefit.
On December 31, 2023, the Appellant filed a Notice of Appeal.
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Appeal Number 2024-0001 Appellant Submission On December 31, 2023, the Appellant appealed the Ministry’s reconsideration decision and stated on the Notice of Appeal form: “Our family income was recently adjusted and is under $111,000 making us eligible to receive the CCS. When the reconsideration request was denied, it noted my husband’s 2022 tax reassessment information was not available from the CRA at the time I made the original request. I would like the decision to reflect our adjusted income.”
On January 18, 2024, the Appellant emailed a ten-page file to the Tribunal with her 2022 Notice of Reassessment document from the CRA and her husband’s 2022 Notice of Reassessment document from the CRA.
During the hearing, the Appellant pointed out that line 23600 of her 2022 Notice of Reassessment from the CRA lists her net income as $19,291. Line 23600 of her husband’s 2022 Notice of Reassessment from the CRA lists his net income as $88,869. The family unit’s reassessed net income for 2022 is $108,160. $108,160 is within the Ministry’s partial subsidy range for a family unit that earns between $45,000.01 and $110,999.99, for a child in a licensed daycare facility. The Appellant noted that, with the submission of the family unit’s adjusted annual net income for 2022, her family now should qualify for a partial subsidy of the Affordable Child Care Benefit.
Admissibility of New Evidence The Appellant submitted a statement in her December 31, 2023 Notice of Appeal form within the section titled “Tell us why you disagree with the reconsideration decision,” and on January 18 provided her family unit’s CRA Reassessment for 2022. The panel admits those submissions as evidence that is reasonably required for a full and fair disclosure of all matters related to the decision under appeal, and the panel has weighed that evidence in making its decision.
Ministry Submission During the hearing, the Ministry representative reiterated the Reconsideration Decision and reviewed how eligibility for the Affordable Child Care Benefit is calculated, based on the Regulation’s requirements.
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Appeal Number 2024-0001 The Ministry representative explained that the original decision and Reconsideration Decision are based on the Appellant’s family unit having an income of $119,435 in 2022, as listed on Line 150 of their combined 2022 CRA Assessments.
Section 9(3) of the Regulation requires that the Ministry takes the family unit’s combined income from Line 150 and then applies an adjustment of $2,000 for every family member after the first two members. There are three people in the Appellant’s family unit and accordingly, the Ministry adjusted the family unit’s 2022 annual income by $2,000. With this adjustment, the family unit’s adjusted income for 2022 is $117,435. $117,435 is above the maximum threshold of $111,000 allowable for a maximum or partial subsidy of the Affordable Child Care Benefit.
The Ministry representative also noted that, at the time of the original decision, the Ministry did not know the third member of the Appellant’s family unit is a child with special needs. On November 28, the Appellant submitted the Affordable Child Care Benefit – Special Needs form (CF2951) that had been completed by a Certified Speech Pathologist. The Certified Speech Pathologist confirmed that the Appellant’s child has a physical, intellectual, emotional, communicative or behavioural impairment and requires additional support services because of that impairment and would continue to require additional support services until their 19th birthday.
In the case of a family unit with one or more children with special needs, the Regulation requires an adjustment of $3,000 for each child with special needs from Line 150 of the family unit’s combined annual income. With a $3,000 adjustment rather than a $2,000 adjustment for the third member of the family, the family unit’s revised adjusted income for 2022 would be $116,435 instead of $117,435. The adjusted income figure of $116,435 is above the maximum threshold of $111,000 allowable for a maximum or partial subsidy of the Affordable Child Care Benefit.
The Ministry representative noted the Appellant testified during the hearing to using Line 23600 from her family unit’s combined 2022 income tax reassessments from CRA to calculate the family unit’s eligibility for a partial subsidy.
The Ministry representative explained that Section 9(3) of the Regulation requires the Ministry to use Line 150 of the family unit’s combined 2022 assessment from the CRA, and not Line 23600 of the family unit’s combined 2022 assessment from the CRA. Using Line
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Appeal Number 2024-0001 23600, the family unit’s combined adjusted inc ome for 2022 is $116,435 and is above the maximum threshold of $111,000 permitted under Section 7 of the Regulation.
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Appeal Number 2024-0001 Part F – Reasons for Panel Decision The decision to be made is whether the Appellant’s family unit qualifies for a partial subsidy of the Affordable Child Care Benefit.
Legislation
The Child Care Subsidy Regulation Section 7 sets out that an applicant is not eligible for a child care subsidy if the family's adjusted annual income equals or exceeds the following:
(a) $111 000 for a child receiving child care in a licensed child care setting; (b) $85 000 for a child receiving child care in a registered licence-not-required child care setting; (c) $70 000 for a child receiving child care (i) In a licence-not-required child care setting, or (j) In the child’s own home as described in section 2 (c).
Section 8 of the Regulation sets out how the amount of subsidy a family is eligible for is calculated.
Section 9 of the Regulation sets out how the family’s adjusted annual income is calculated. Section 9(3) states the minister must calculate the annual income of the applicant and the applicant’s spouse by
(a) determining the person's income for the previous year, or for the year before the previous year if a notice of assessment is not available for the person for the previous year, as
(i) the amount reported on line 150 of the person's notice of assessment if there has been no notice of reassessment for the applicable year, or (ii) if there was a notice of reassessment for the person, the amount reported on line 150 of the notice of reassessment, and (b) deducting from the income determined under paragraph (a) all amounts, if any, reported on line 145 of the applicable notice of assessment or notice of reassessment under paragraph (a).
The panel is required to determine if the Ministry’s reconsideration decision was a) supported by the evidence, and b) a reasonable application of the applicable enactment.
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Appeal Number 2024-0001 Panel Decision The panel finds that the Ministry reconsideration decision was supported by the evidence and that this decision was a reasonable application of Sections 7 and 9 of the Regulation in determining that the family unit’s combined adjusted annual income of $116,435 for 2022 is above the maximum threshold of $111,000 to qualify for a partial subsidy of the Affordable Child Care Benefit. Despite the reassessment of the Appellant’s income by the CRA, the Regulation stipulates that line 150 be considered as opposed to line 23600 as proposed by the Appellant; this would place the Appellant’s annual income above the legislated limits and as such denies the Appellant of the benefits sought here.
Conclusion Based on these findings, the panel confirms the Ministry’s reconsideration decision. The Appellant is not successful in her appeal.
Appendix A Relevant Legislation
Child Care Subsidy Act Child care subsidies 4 Subject to the regulations, the minister may pay child care subsidies.
Child Care Subsidy Regulation Income test 7 (1) An applicant is not eligible for a child care subsidy if the family's adjusted annual income equals or exceeds the following: (a) $111 000 for a child receiving child care in a licensed child care setting; (b) $85 000 for a child receiving child care in a registered licence-not-required child care setting; (c) $70 000 for a child receiving child care (i) in a licence-not-required child care setting, or (ii) in the child's own home as described in section 2 (c). (2) Subsection (1) does not apply to an applicant if the child care is for a child
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Appeal Number 2024-0001 (a) in relation to whom the app licant has entered into an agreement with a director under section 8 of the Child, Family and Community Service Act, (b) in relation to whom the applicant, by agreement under section 94 of the Child, Family and Community Service Act, exercises a director's rights or carries out a director's responsibilities, (c) of whom the applicant has interim or temporary custody under an order of the court under section 35 (2) (d), 41 (1) (b), 42.2 (4) (c), 49 (7) (b) or 54.01 (9) (b) of the Child, Family and Community Service Act, (c.1) of whom the applicant has been permanently transferred custody under an order of the court under section 54.01 (5) or 54.1 (3) of the Child, Family and Community Service Act, (d) of whom the applicant has custody under an order of the court under section 42.2 (4) (a) of the Child, Family and Community Service Act, if the applicant is the other person referred to in section 42.2 (4) (a) (i), (e) who is receiving assistance under the authority of the Child in the Home of a Relative Program Transition Regulation, B.C. Reg. 48/2010, and the applicant is the relative with whom that child resides, or (f) who is receiving assistance under a program, similar in nature to the program referred to in paragraph (e), provided (i) on a reserve, within the meaning of the Indian Act (Canada), by the government of Canada, or (ii) by the Nisga'a Nation or a treaty first nation.
Amount of subsidy 8 (1) In this section: "full time child care" means child care for which the minister may pay a child care subsidy that is provided for the equivalent of at least 20 full days per month;
"full time subsidy amount", in relation to a child receiving part time child care, means the monthly child care subsidy determined in accordance with subsection (3), (4) or (5), as applicable, that would apply if the child were receiving full time child care;
"number of full days" means the number of full days per month for which the minister may pay a child care subsidy; "number of half days" means the number of half days per month for which the minister may pay a child care subsidy;
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Appeal Number 2024-0001 "parent fee" in relation to a parent, means the fee the parent is charged by the applicable child care provider for child care for which the minister may pay a child care subsidy;
"part time child care" means child care for which the minister may pay a child care subsidy that is provided for less than the equivalent of 20 full days per month.
(2) For the purposes of applying the definitions of "full time child care" and "part time child care" in subsection (1), 2 half days are the equivalent of one full day. (3) If a family's adjusted annual income is less than or equal to the following, the monthly child care subsidy for a child receiving full time child care is the parent fee or the amount set out in Column 3 of the applicable table in Schedule A, whichever is less, for the type of child care the child is receiving: (a) $45 000 for a child receiving child care in a licensed child care setting; (b) $39 000 for a child receiving child care in a registered licence-not-required child care setting; (c) $24 000 for a child receiving child care (i) in a licence-not-required child care setting, or (ii) in the child's own home as described in section 2 (c). (4) If a family's adjusted annual income exceeds the applicable amount under subsection (3) (a), (b) or (c), the monthly child care subsidy for a child receiving full time child care is the parent fee or the amount determined in accordance with the applicable formula in Schedule A, whichever is less, for the type of child care the child is receiving. (5) Despite subsections (3) and (4), the monthly child care subsidy for a child described in section 7 (2) who is receiving full time child care is the parent fee or the amount set out in Column 3 of the applicable table in Schedule A, whichever is less, for the type of child care the child is receiving. (6) If child care is provided through a Young Parent Program and the child care provider operating the Young Parent Program confirms, in the form specified by the minister, that the parent is participating in the Young Parent Program, (a) despite subsections (3) and (4), the monthly child care subsidy for a child who is receiving full time child care provided through the Young Parent Program is $1 500, and (b) despite subsection (7), the monthly child care subsidy for a child receiving part time child care provided through the
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Appeal Number 2024-0001 Young Parent Program is the am ount determined in accordance with the following formula:
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(7) The monthly child care subsidy for a child receiving part time child care is the parent fee or the amount determined in accordance with the following formula, whichever is less, for the type of child care the child is receiving:
(number of half days × 0.5) + number of full day20 s̱ × full time subsidy amount
(8) Despite subsection (7), the monthly child care subsidy for a child receiving part time child care provided in a licensed preschool is the parent fee or the amount determined in accordance with the following formula, whichever is less, for that type of child care:
number of half day20 s̱ × full time subsidy amount
(9) Despite subsection (7), the monthly child care subsidy for a child receiving part time child care that is care surrounding school day is the parent fee or the
(number of half days × 0.5) + number of full day20 s̱ × 1 500
Appeal Number 2024-0001 amount determined in accordance with th e following formula, whichever is less, for that type of child care:
(number of half days × 0.83333) + number of full day20 s̱ × full time subsidy amount
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(10) If the child care is arranged or recommended by staff delegated under the Child, Family and Community Service Act, after staff have (a) offered support services or agreements to the child and family under section 16 (2) (a) of that Act, (b) begun an assessment under section 16 (2) (b.1) of that Act, or (c) begun an investigation under section 16 (2) (c) of that Act,
the minister may pay any increase in the amount of the child care subsidy that the minister considers necessary to ensure that the child care is provided.
Calculation of family's adjusted annual income 9 (1) In this section, "previous year" means the year previous to the current calendar year. (2) In relation to a child care subsidy that is to be determined based on a family's adjusted annual income, the minister must calculate the family's adjusted annual income as follows: (a) by adding, for the applicant and the applicant's spouse, if any, the annual income for the person determined under subsection (3) or (4), as applicable; (b) by deducting from the amount calculated under paragraph (a) any applicable amounts under subsection (5). (3) For the purposes of subsection (2), the minister must calculate the annual income of the applicant and the applicant's spouse, if any, by (a) determining the person's income for the previous year, or for the year before the previous year if a notice of assessment is not available for the person for the previous year, as
Appeal Number 2024-0001 (i) the amount reported on line 150 of the person's notice of assessment if there has been no notice of reassessment for the applicable year, or (ii) if there was a notice of reassessment for the person, the amount reported on line 150 of the notice of reassessment, and (b) deducting from the income determined under paragraph (a) all amounts, if any, reported on line 145 of the notice of assessment or notice of reassessment that apply under paragraph (a). (4) If a notice of assessment is not available for either of the 2 calendar years before the current year with respect to the applicant or the applicant's spouse, if any, (a) the applicant may give to the minister a statement, in the form required by the minister, attesting to the applicant's or the applicant's spouse's, as applicable, total income from all sources except social assistance payments, stated in Canadian dollars, for the previous year, and (b) on receiving income information satisfactory to the minister under paragraph (a), the minister may determine the annual income of the person based on that information. (5) For the purposes of this section, the following deductions may be made, if applicable: (a) $0 for the first dependant in the family who is not a child with special needs; (b) $2 000 for each additional dependant in the family; (c) $3 000 for each child with special needs in the family.
Income review 9.1 (1) In this section: "estimated decreased annual income" means the estimated income from all sources except social assistance payments, stated in Canadian dollars, for the applicant or the applicant's spouse, if any, for the 12-month period beginning the month after the month in which the applicant requests an income review under this section;
"estimated increased annual income" means the estimated income from all sources except social assistance payments, stated in Canadian dollars, for the applicant, or the applicant's spouse, if any, for the 12-month period beginning the month after the month in which the income of the applicant or the applicant's spouse, as applicable, increased;
"new applicant" means a parent who (a) is not currently receiving a child care subsidy, and
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Appeal Number 2024-0001 (b) has applied for a child care s ubsidy under section 4 but no determination has yet been made whether the parent is eligible for a child care subsidy. (2) Despite section 9 (3), if the income of the applicant or of the applicant's spouse, if any, has decreased, (a) the applicant may request the minister to conduct an income review by giving to the minister a statement, in the form required by the minister, attesting to the estimated decreased annual income of the applicant or the applicant's spouse, as applicable, and (b) the minister may determine the annual income of the person based on that information. (3) Despite section 9 (2), on receiving a request for an income review under this section, if the minister is satisfied that the income decrease may result in an increase in the amount of child care subsidy, the minister must calculate the family's adjusted annual income as follows: (a) by adding, for the applicant and the applicant's spouse, if any, (i) the lesser of (A) the annual income of the person referred to in subsection (2) of this section whose income decreased as determined in accordance with subsection (2) (b) of this section, or (B) the annual income of that person as determined in accordance with section 9 (3) or (4), as applicable, and (ii) the annual income of the applicant or the applicant's spouse, if any, determined in accordance with section 9 (3) or (4), if applicable; (b) by deducting from the amount calculated under paragraph (a) the applicable amounts under section 9 (5). (4) If the minister is satisfied that the family's adjusted annual income calculated under subsection (3) of this section will result in an increase in the amount of child care subsidy, the minister must redetermine the amount of child care subsidy using the family's adjusted annual income calculated under subsection (3) of this section as the basis for the calculation under section 8 [amount of subsidy]. (5) If an applicant is eligible for an increased amount of child care subsidy determined in accordance with subsection (4) of this section, the increased amount of child care subsidy may be paid as follows: (a) in the case of a new applicant, from the first day of the month in which the parent completes an application under section 4; (b) in all other cases, despite section 13 (1), from the first day of the month after the month in which the applicant requests an income review under this section.
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Appeal Number 2024-0001 (6) Despite section 9 (3), (a) an applicant to or for whom an increased amount of child care subsidy is paid in accordance with this section must give to the minister a statement, in the form required by the minister, attesting to the estimated increased annual income of the person referred to in subsection (2) of this section whose income decreased if (i) the income of that person increases, and (ii) the family's adjusted annual income was calculated under subsection (3) of this section using the annual income of that person referred to in paragraph (a) (i) (A) of that subsection, and (b) the minister may determine the annual income of the person based on that information. (7) Despite section 9 (2), on receiving a statement referred to in subsection (6) of this section, if the minister is satisfied that the income increase may result in a decrease in the amount of child care subsidy, the minister must calculate the family's adjusted annual income as follows: (a) by adding, for the applicant and the applicant's spouse, if any, (i) the lesser of (A) the annual income of the person referred to in subsection (6) of this section whose income increased determined in accordance with subsection (6) (b) of this section, or (B) the annual income of that person determined in accordance with section 9 (3) or (4), as applicable, and (ii) the annual income of the applicant or the applicant's spouse, if any, determined in accordance with section 9 (3) or (4), if applicable; (b) by deducting from the amount calculated under paragraph (a), the applicable amounts under section 9 (5). (8) If the minister is satisfied that the family's adjusted annual income calculated under subsection (7) of this section will result in a decrease in the amount of child care subsidy, the minister must redetermine the amount of child care subsidy using the family's adjusted annual income calculated under subsection (7) of this section as the basis for the calculation under section 8.
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Appeal Number 2024-0001 Sche dule A Definition 1 In this Schedule, "maximum benefit" means the monthly child care subsidy set out in Column 3 of the applicable table in this Schedule for the type of child care the child is receiving.
Subsidy rates for licensed child care setting 2 The monthly child care subsidy for a child receiving a type of child care provided in a licensed child care setting is to be determined in accordance with the formula in paragraph (a), (b) or (c), as applicable, and the table in this section: (a) if a family's adjusted annual income is more than $45 000 but less than or equal to $60 000, the amount of child care subsidy is to be determined in accordance with the following formula:
maximum benefit x 1 − (family's adjusted annual income − 15 000 45 000) × 0.272̱
(b) if a family's adjusted annual income is more than $60 000 but less than or equal to $80 000, the amount of child care subsidy is to be determined in accordance with the following formula:
0.728 × maximum benefit (c) if a family's adjusted annual income is more than $80 000 but less than $111 000, the amount of child care subsidy is to be determined in accordance with the following formula:
(0.728 × maximum benefit) x 1 − (family's adjusted annual income − 31 000
80 000) ̱
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Table of Maximum Benefits
Item Column 1 Care Code
1 G1 2 G2 3 G3
4 G4
5 J1 − L 6 J2 − L 7 J3 − L
8 J4 − L 9 N1 10 L2
Appeal Number 2024-0001
Column 2 Type of Child Care Provided in a Licensed Child Care Setting
Group Child Care / Multi-Age Child Care children under 19 months children 19 months and over but under 37 months children 37 months and over but who have not reached school age children of school age
Family Child Care / In-Home Multi-Age Child Care children under 19 months children 19 months and over but under 37 months children 37 months and over but who have not reached school age children of school age Other Preschool (children 30 months and over but who have not reached school age) care surrounding school day
Column 3 Maximum Benefit per Month
$1 250 $1 060 $550
$415
$1 000 $1 000 $550
$415 $225 $210
Subsidy rates for registered licence-not-required child care setting 3 If a family's adjusted annual income is more than $39 000 but less than $85 000, the monthly child care subsidy for a child receiving a type of child care provided in a registered licence-not required child care setting is to be determined in accordance with the following formula and the table in this section:
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Appeal Number 2024-0001
maximum benefit x 1 − (family's adjusted annual income − 46 000
Item Column 1 Care Code
1 R1 2 R2 3 R3
4 R4 5 L2
39 000) ̱
Table of Maximum Benefits Column 2 Type of Child Care Provided in a Registered Licence-Not-Required Child Care Setting
children under 19 months children 19 months and over but under 37 months children 37 months and over but who have not reached school age children of school age care surrounding school day
Column 3 Maximum Benefit per Month $600 $600 $550
$415 $210
Subsidy rates for licence-not-required child care setting 4 If a family's adjusted annual income is more than $24 000 but less than $70 000, the monthly child care subsidy for a child receiving a type of child care provided in a licence-not-required child care setting is to be determined in accordance with the
following formula and the table in this section: maximum benefit x 1 − (family's
adjusted annual income − 46 000
24
000 ) ̱
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Appeal Number 2024-0001 Table of Max imum Benefits Item Column 1 Column 2 Care Type of Child Care Provided in Licence- Code Not -Required Child Care Setting 1 F1 children under 19 months 2 F2 children 19 months and over but under 37 months 3 F3 children 37 months and over 4 L2 care surrounding school day
Column 3 Maximum Benefit per Month $438 $404
$354 $210
Subsidy rates for child care provided in child's own home 5 If a family's adjusted annual income is more than $24 000 but less than $70 000, the monthly child care subsidy for a child receiving a type of child care provided in the child's own home as 14 described in section 2 (c) of the regulation is to be determined in accordance with the following formula and the table in this section:
maximum benefit x 1 − (family's adjusted annual income − 46 000
Item Column 1 Care Code
1 H1 2 H2 3 H3 4 H4
Table of Maximum Benefits Column 2 Type of Child Care Provided in Child's Own Home
24
1st child under 19 months 1st child 19 months and over 2nd child under 19 months (a) 1st child of school age receiving care surrounding school day if another child in the family, who has not reached school age, is in care code H1 or H2 (b) 2nd child, unless the child is under 19 months, whether or not receiving care surrounding school day
000 ) ̱
Column 3 Maximum Benefit per Month $394 $318 $198 $147
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5 L2
Appeal Number 2024-0001 (c) each child in additio n to the 1st or 2nd child, as applicable, whether or not receiving care surrounding school day
care surrounding school day — 1st child of school age unless another child in the family, who has not reached school age, is in care code H1 or H2
$210
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Part G – Order The panel decision is: (Check one)
APPEAL NUMBER 2024-0001
☒Unanimous ☐By Majority
The Panel ☒Confirms the Ministry Decision ☐Rescinds the Ministry Decision If the ministry decision is rescinded, is the panel decision referred back to the Minister for a decision as to amount? Yes☐ No☐ Legislative Authority for the Decision: Employment and Assistance Act Section 24(1)(a)☒ or Section 24(1)(b) ☐ Section 24(2)(a)☒ or Section 24(2)(b) ☐
Part H – Signatures
Print Name Melissa McLean
Signature of Chair
Date (Year/Month/Day) 2024/01/25
Print Name Bob Fenske
Signature of Member
Date (Year/Month/Day) 2024/01/025
Print Name Richard Franklin
Signature of Member
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Date (Year/Month/Day) 2024/01/25
Signature Page