Parents who enroll their children in activities that boost cardio-respiratory fitness should be eligible for a federal tax credit, an expert panel has urged.
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In its first budget in May 2006, the Conservative government acted on its campaign pledge to provide one per cent of health spending for sport and physical activity, boosting the annual total to $147 million.
The government also proposed the Children's Fitness Tax Credit, in part because rates of overweight and obesity among Canadian children have nearly tripled over the past two decades.
REPORT
The tax credit would apply to fees paid for "an eligible program of physical activity" for children under the age of 16. The credit is due to come into effect on Jan. 1, 2007, and is expected to cost the government $160 million a year. On Oct. 26, the Expert Panel for the Children's Fitness Tax Credit provided a list of eligibility criteria for the tax credit:
- Cover eligible fees of up to $500 a year for parents with children participating in physical activity programs.
- Eligible activities are those in which "substantially all of the activities undertaken include a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of: muscular strength, muscular endurance, flexibility, balance."
- For children 10 and younger, activities must run for at least 30 minutes while those for older children must run at least 60.
- Activities don't have to involve a coach or instructor to be eligible, although a supervisor must be present to encourage active participation and promote elements such as improving cardio-respiratory endurance.
- Self-directed activities and drop-in fees would not be eligible.
- Seasonal or membership fees paid at mixed-use facilities would be eligible as long as the recreational programs met the criteria in Canada's Physical Activity Guides for Children and Youth outlined in the report.
- For a camp program to be eligible, it would need to last at least five consecutive days, during which at least 50 per cent of the activity during the program hours of each day would involve physical activity.
- In organizations such as golf clubs or clubs that sponsor more than just physical activities, only the portion of the membership fee that is activities-based would be eligible. For family memberships, only the part of the fee related to the child or children would be eligible.
- Programs requiring the use of a motorized vehicle would not be eligible.
- Courses that teach coaching skills and have the required physically active component would be eligible, but those that are classroom-based would not.
- Fees charged for regular school phys-ed programs would not be eligible, but fees for extra-curricular activities at a school would be.
- The activity must take place within Canada.
- The required receipts should be no more complex or detailed than is required for an RRSP or restaurant receipt used for business expenses.
- The panel recommends exploring sponsorship opportunities for people who might choose to help children whose parents do not have the means to pay for membership fees, programs, or camps on their own.
- The tax credit definition and framework would be reviewed four years after its implementation.
The panel recommended that the tax credit for young people with disabilities cover those up to age 22 and up to $1,000 in fees and services, including covering:
- Activities eligible for fully able-bodied children.
- Costs of equipment and assistive devices.
- Transportation costs for children to attend physical activities.
- Attendant care costs while participating in physical activities.
