OTTAWA 鈥� The federal government is rolling out $27 billion in new spending and $55 billion in credit to help families and businesses get past the COVID-19 pandemic.
Here are the major measures targeted at individuals, and what has been released about how to use them.
GST credit and sa国际传媒 Child Benefit top-up
The government will provide a one-time special payment through the GST credit to low-income families that will average about $400 for singles and $600 for couples. Similarly, the government is proposing to provide, on average, about $550 in additional May child-benefit payments. Benefits are tied to income through an individual鈥檚 or family鈥檚 annual tax return.
The sa国际传媒 Revenue Agency encourages anyone who is eligible for either program to not delay filing their taxes. The value of benefits is based on income, with payments adjusted in July when the benefit year begins.
Employment insurance sickness benefits
The one-week waiting period before benefits can be paid out for people unable to work because of illness has already been waived. The update this week waives the requirement to provide the government with a medical certificate. An application is available online through the Employment and Social Development website.
Pausing student-loan repayment
Once approved by Parliament, payments would be paused from March 30 until Sept. 30, with no accrual of interest. The government hasn鈥檛 made public further details of how this will work.
Emergency care benefit
This is for parents who can鈥檛 work because schools or daycares are closed and for people taking care of sick family members, who don鈥檛 qualify for EI benefits. The benefit will pay up to a maximum $900, every two weeks, for up to 15聽weeks. The online application through the sa国际传媒 Revenue Agency will be available in April.
Emergency Support Benefit
Like the care benefit, this will pay benefits for 14 weeks to unemployed workers who don鈥檛 qualify for employment insurance benefits, either because they are self-employed or because they don鈥檛 have enough accumulated working hours in the previous 52 weeks. The payments would be comparable with what is provided through EI, which is 55 per cent of average weekly earnings up to a maximum amount that this year is $573 per week. Finance Minister Bill Morneau said Wednesday that more details of how to apply for the benefit, which will be administered by the CRA, would 鈥渃ome in the near future.鈥�
Changes in tax filing
The filing deadlines for individuals, but not trusts, is moved to June 1. For trusts with a taxation year ending on Dec. 31, 2019, the filing due date is now May 1. And if you owe taxes as an individual or business, you can defer payments until September. As well, the CRA will recognize electronic signatures to reduce administrative burden and lessen the need for taxpayers and preparers to meet in person.
Help for businesses
The government is providing $10聽billion in loans through the Business Credit Availability Program. Companies whose applications are accepted, by Export Development sa国际传媒 or the Business Development Bank of sa国际传媒, can receive working capital loans of up to $2聽million with flexible terms and reduced rates, and the option for some existing loan recipients to postpone payments for up to six months.
Businesses thinking about applying need to go to their own financial institutions first before being referred to BDC, and eligible businesses had to be financially viable before the outbreak hit the economy.
