Canada has approved an emergency federal bill which gives the government the power to spend billions of dollars to support individuals and families affected by novel Covid-19. The bill was signed into law by Julie Payette, Governor General at 12:00 PM approximately on Wednesday, March 25th. Details of the plan are below.
Canada Emergency Response Benefit (CERB)
A $2,000 taxable benefit for up to 4 months will be provided to individuals affected by Covid-19. This includes parents who must stay home to take care of children who are sick or due to closure of daycares.
How to Qualify
- Individuals who have stopped working and who do not have paid leave or other sources of income may qualify for CERB.
- Individuals who are sick, quarantined or taking care of someone who is sick with coronavirus may qualify.
- Parents who have to stay home without pay because they have to take care of children who are sick or out of school/daycare may qualify.
- Individuals who are still employed but not being paid because lack of work due to the employer asking them not to come in, may qualify.
- Wage earners, self employed and contract workers who cannot qualify for Regular EI Benefits, may qualify.
Increasing the Canada Child Benefit
The government is providing an extra $300 per child through the Canada Child Benefit for 2019-2020. This will mean approximately $550 more for the average family. The payment will be delivered as scheduled in May
Goods and Services Tax Credit Payment
A one time special payment by early May through the GST credit for low and modest income families. The average additional benefit will be $400 for single individuals and $600 for couples.
Extra Time to File Income Tax Returns
Tax return deadline is being deferred. For individuals, the return filing due date has been extended to June 1st, 2020. Any tax balances owed is deferred until August 31st, 2020 without incurring interest.
Mortgage Support
Canadians banks are working on a case-by-case basis to help Canadians defer their mortgage payments due to hardship caused by Covid-19. Contact your financial institution.
Indigenous Community Support Fund
$305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities
Enhancing the Reaching Home Initiative
Support homelessness by providing $157.5 million to be used towards range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.
Support for Women’s Shelters and Sexual Assault Centres
Women and children feeling violence will be taken care of. Up to $50 million will be pumped in to women’s shelters and sexual assault centres that are helping to manage this outbreak.
Support for Seniors
The required minimum withdrawal for Registered Retirement Income Funds is reduced by 25% for 2020.
Support for Students and Graduates
The interest on student loans will be deferred for six month. This applies to repayment of Canada Student Loans, including all student loan borrowers. No payment will be required and interest will not accrue.