These measures were announced the week ending March 20, 2020. The information is now stale dated. Please click here for updates on these measures.
The past week showed the economic reality of COVID-19. The Federal and Provincial governments responded with measures to help individuals and businesses. The following is a summary of those measures.
Federal Support
Support for Individuals
- Increasing the annual maximum Canada Child Benefit by $300 per child.
- Extending the Income Tax Filing Deadline from April 30, 2020 to June 1, 2020.
- Deferring the Payment Deadline, until after August 31, 2020 for income tax amounts that become due after March 18, 2020 and before September 2020. No interest or penalties will accumulate on these amounts during this period.
- Waiving the one-week waiting period to qualify for the EI Sickness Benefit for individuals without paid sick leave (or similar workplace accommodation). This applies if you are sick, quarantined or forced to stay home to care for children. Click here for more information and to apply.
- Waiving the requirement to provide a medical certificate to access the EI Sickness Benefit.
- Introducing the Emergency Support Benefit providing up to $900 bi-weekly for up to 15 weeks. Application for this benefit will be available in April 2020. You will be required to attest that you meet the eligibility requirements. You will also need to re-attest every two weeks to reconfirm eligibility. The benefit applies to workers, including the self-employed that is:
- sick or quarantined, but don’t qualify for EI,
- taking care of a sick or quarantined family member, but don’t qualify for EI, and
- a parent forced to stay home to care for children due to the school closures, regardless of whether the individual qualifies for EI or not
- Increasing the GST Credit with a one time payment that effectively doubles the credit. The increase is approximately $400 for individuals and $600 for families who qualify for the credit.
- Easing the rules for minimum Registered Retire Income Fund withdrawals by 25% for 2020, in recognition of the volatile market conditions. Senior who can afford to will therefore have greater flexibility in withdrawals to prevent liquidation of RRIF assets to meet minimum withdrawal requirements.
- Placing a six-month interest free moratorium on the repayment of Canada Student Loans. The moratorium applies to individuals currently repaying student loans.
- Supporting lenders through the CMHC to permit lenders to allow Mortgage Payment Deferral. Canada’s large banks have confirmed the support will include up to six-month payment deferral on mortgages. On a case-by-case basis relief may also be provided on other credit products.
Support for Businesses
- Deferring the Payment Deadline, until after August 31, 2020 for income tax amounts that become due after March 18, 2020 and before September 2020. No interest or penalties will accumulate on these amounts during this period.
- Ceasing all GST/HST and Income Tax Audits for the next four weeks.
- Providing employers with Wage Subsidies. Employers that qualify for the subsidy are corporations eligible for the small business deduction, non-profit organizations and charities. The subsidy is equal to 10% remuneration, limited to $1,375 per employee and $25,000 per employer. The subsidy will be “paid” by allowing employers to reduce their payroll remittance by 10% each reporting period.
- Extending the Work-Sharing Program. The program provides EI benefits to workers who agree to reduce their normal working hours due to developments beyond the control of their employer. The program is extended by:
- increasing the eligibility for the agreement to 76 weeks,
- easing the eligibility requirements, and
- streamlining the application process.
- Click here for more information and to apply.
- Establishing a Business Credit Availability Program. The program will allow the BDC and EDC to provide loans to small and medium-sized businesses. FCC will also increase funding available to farmers and the agri-food sector. Click here for more information on the BCAP.
General Support for the Economy
- Lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This will allow Canada’s large banks to provide $300 billion in additional lending to the economy.
- Cutting the Interest Rate to 0.75%. This will allow Canada’s lenders to reduce the variable rate of borrowing, reducing the cost of borrowing.
Alberta Support
Support for Individuals
- Deferring the Payment Deadline, until after August 31, 2020 for income tax amounts that become due after March 18, 2020 and before September 2020. No interest or penalties will accumulate on these amounts during this period.
- Deferring of Utility Payments for the next 90 days. Apply directly with your utility provider.
- Changing the Employment Standards Code will allow employees to take 14 days of job-protected leave. The leave will not require a medical note. Also the employee do not need to have worked for an employer for 90 days. The leave applies if the employee is:
- required to self-isolate, or
- caring for a child or dependent adult that is required to self-isolate.
Support for Businesses
- Deferring the Payment Deadline, until after August 31, 2020 for income tax amounts that become due after March 18, 2020 and before September 2020. No interest or penalties will accumulate on these amounts during this period.
- Deferring of Utility Payments for the next 90 days. Apply directly with your utility provider.
- Mobilizing ATB to Support Businesses. ATB small business customers can apply for a payment deferral on loans and lines of credit for up to 6 months. Those customers may also apply for additional working capital. Other businesses and agriculture customers can access support on a one-to-one basis.