Prime Minister Trudeau has announced more than $82 billion through Canada’s COVID-19 Economic Response Plan to help Canadians affected by coronavirus related financial fallout.
Highlights:
- $27 billion in direct support to Canadian workers and businesses
- $55 billion to meet the liquidity needs of Canadian businesses and households through tax deferrals to help stabilize the economy.
- Combined, this $82 billion in support represents more than 3 percent of Canada’s GDP.
When Can You Get These Benefits:
The government expects that these measures will be implemented by early April, after receiving Royal Assent for the legislation which will be introduced in the Parliament soon.
You should expect to start getting these benefits by around mid to late April.
If you are in Quebec or Alberta, and you are in self-isolation or taking care of somebody who is in isolation, you will get around $573 per week before April. B.C. has announced a one-time $1000 payment for British Columbians under new B.C. Emergency Benefit for Workers Plan. New Brunswick also pays $900 one time benefit for those who have recently become unemployed due to COVID-19.
Support for workers during COVID-19
- Temporarily boost Canada Child Benefit payments. (Up to $300 per child)
- Emergency Care Benefit of up to $900 bi-weekly for up to 15 weeks to provide income support to workers who must stay home and do not have access to paid sick leave. (Update March 25: Taxable Canada Emergency Response Benefit of $2000 will replace Emergency Care Benefit for eligible Canadians.)
- For: Workers, including the self-employed, who are sick, quarantined, or who have been directed to self-isolate but do not qualify for Employment Insurance (EI) sickness benefits.
- Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent or other dependents who are sick, but do not qualify for EI sickness benefits.
- EI-eligible and non EI-eligible working parents who must stay home without pay because of children who are sick or who need additional care because of school closures.
- Introduce an Emergency Support Benefit delivered through the Canada Revenue Agency to provide up to $5 billion in support to workers who are not eligible for EI and who are facing unemployment.
- Provide additional assistance to individuals and families with low and modest incomes with a special top-up payment under the Goods and Services Tax (GST) credit. (Around $400 for individuals and $600 for couples)
- Waive, for a minimum of six months, the mandatory one-week waiting period for EI sickness benefits for workers in imposed quarantine or who have been directed to self-isolate, as announced on March 11.
- Waive the requirement for a medical certificate to access EI sickness benefits. How to Apply for EI.
- Extend the tax filing deadline for individuals to June 1, and allow all taxpayers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period. This measure will result in households having more money available during this period.
- Provide increased flexibility to lenders to defer mortgage payments on homeowner government-insured mortgage loans to borrowers who may be experiencing financial difficulties related to the outbreak. Insurers will permit lenders to allow payment deferral beginning immediately.
FYI: Application for the Emergency Care Benefit will be available in April 2020, and will require Canadians to attest that they meet the eligibility requirements. They will need to re-attest every two weeks to reconfirm their eligibility. To apply for the Benefit, Canadians can access it on their CRA MyAccount secure portal.
For Businesses:
- To help employers keep people on their payroll and help Canadians keep their jobs: Provide eligible small businesses a 10 percent wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Employers benefiting from this measure would include corporations eligible for the small business deduction, as well as not-for-profit organisations and charities.
- Allow all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020. This relief would apply to tax balances due, as well as instalments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.
- Increase the credit available to small, medium, and large Canadian businesses. As announced on March 13, a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges through the Business Development Bank of Canada and Export Development Canada. The Government is ready to provide more capital through these financial Crown corporations.
- Further expand Export Development Canada’s ability to provide support to domestic businesses.
- Provide flexibility on the Canada Account limit, to allow the Government to provide additional support to Canadian businesses, when deemed to be in the national interest, to deal with exceptional circumstances.
- Augment credit available to farmers and the agri-food sector through Farm Credit Canada.
- Launch an Insured Mortgage Purchase Program to purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC). As announced on March 16, this will provide stable funding to banks and mortgage lenders and support continued lending to Canadian businesses and consumers. CMHC stands ready to further support liquidity and the stability of the financial markets through its mortgage funding programs as necessary. The Government will enable these measures by raising CMHC’s legislative limits to guarantee securities and insure mortgages by $150 billion each.
Other Benefit Measures include:
- Reduce minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for 2020 in recognition of volatile market conditions and their impact on many seniors’ retirement savings.
- Implement a six-month, interest-free, moratorium on Canada Student Loan payments for all individuals who are in the process of repaying these loans.
- Provide $305 million for a new distinctions-based Indigenous Community Support Fund, to address immediate needs in First Nations, Inuit, and Métis Nation communities.
- Support women and children fleeing violence by providing up to $50 million to women’s shelters and sexual assault centres to help with their capacity to manage or prevent an outbreak in their facilities. This includes funding for facilities in Indigenous communities.
- Provide an additional $157.5 million to address the needs of Canadians experiencing homelessness through the Reaching Home program.