The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak.
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On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses.
Support for individuals
General support for individuals
Support for people facing unemployment
Support for people sick or quarantined
Support for people unable to work
Support for people with low and modest income
- Increased goods and services tax credit this year
- Enhancing the Reaching Home initiative
- Support women’s shelters and sexual assault centers
- A new Indigenous Community Support Fund
Support for seniors
Support for students and recent graduates
Support to businesses
Avoid layoffs
Access to credit
- Establishing a Business Credit Availability Program
- Lowering the Domestic Stability Buffer
- Cutting the interest rate
Supporting financial market liquidity
More flexibility
Support for individuals
Support for individuals and families
Increasing the Canada Child Benefit
We are providing an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
This benefit will be delivered as part of the scheduled CCB payment in May.
Those who already receive the Canada Child Benefit do not need to re-apply.
Extra time to file income tax returns
We are deferring the filing due date for the 2019 tax returns of individuals.
For individuals (other than trusts), the return filing due date will be deferred until June 1, 2020.
We will also allow any new income tax balances due, or instalments, to be deferred until after August 31, 2020 without incurring interest or penalties.
Note: If you expect to receive benefits under the Goods and Services Tax credit or the Canada Child Benefit, we encourage you to not delay your 2019 return filing to ensure that your entitlements are properly determined.
Canadian banks have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. Canadians who are impacted by COVID-19 and experiencing financial hardship as a result should contact their financial institution regarding flexibility for a mortgage deferral. This allows flexibility to be available − when needed − to those who need it the most.
Contact your financial institution for further mortgage assistance.
The Canada Mortgage and Housing Corporation and other mortgage insurers offer tools to lenders that can assist homeowners who may be experiencing financial difficulty. These include payment deferral, loan re-amortization, capitalization of outstanding interest arrears and other eligible expenses, and special payment arrangements.
Canada’s mortgage insurers are committed to providing homeowners with solutions to mitigate temporary financial hardship related to COVID-19. This includes permitting lenders to defer up to six monthly mortgage payments (interest and principal) for impacted borrowers. Deferred payments are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.
Support for people facing unemployment
Apply for Employment Insurance
If you were recently laid off or have reduced hours and qualify for Employment Insurance benefits, you can submit your request today.
The new Canada Emergency Response Benefit
We will provide a taxable benefit of $2,000 a month for up to 4 months to:
- workers who must stop working due to COVID19 and do not have access to paid leave or other income support.
- workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
- working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
- workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
- wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
Application details will be available through My CRA and My Service Canada, beginning the first week of April.
This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.
Support for people who are sick, quarantined, or in directed self-isolation
The new Canada Emergency Response Benefit
We will provide a taxable benefit of $2,000 a month for up to 4 months to:
- workers who must stop working due to COVID-19 and do not have access to paid leave or other income support.
- workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
- working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
- workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
- wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
Application details will be available through My CRA and My Service Canada, beginning the first week of April.
This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.
Improved access to Employment Insurance sickness benefits
If you are sick, quarantined or have been directed to self-isolate, we will waive the requirement to provide a medical certificate to access EI sickness benefits.
Support for people who are unable to work
The new Canada Emergency Response Benefit
We will provide a taxable benefit of $2,000 a month for up to 4 months to:
- workers who must stop working due to COVID-19 and do not have access to paid leave or other income support.
- workers who are sick, quarantined, or taking care of someone who is sick with COVID-19.
- working parents who must stay home without pay to care for children that are sick or need additional care because of school and daycare closures.
- workers who still have their employment but are not being paid because there is currently not sufficient work and their employer has asked them not to come to work.
- wage earners and self-employed individuals, including contract workers, who would not otherwise be eligible for Employment Insurance.
Application details will be available through My CRA and My Service Canada, beginning the first week of April.
This benefit replaces the previously announced Emergency Care Benefit and the Emergency Support Benefit.
Support for people who need it most
Special Goods and Services Tax credit payment
We are providing a one-time special payment by early May through the Goods and Services Tax credit for low- and modest-income families.
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
There is no need to apply for this payment. If you are eligible, you will get it automatically.
Enhancing the Reaching Home initiative
We continue to support people experiencing homelessness during the COVID-19 outbreak by providing $157.5 million to the Reaching Home initiative.
The funding could be used for a 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
We are supporting 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.
A new Indigenous Community Support Fund
We will 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 for seniors
Reduced minimum withdrawals for Registered Retirement Income Funds
We are reducing the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020.
Support for students and recent graduates
A moratorium on the repayment of Canada Student Loans
Effective March 30, we are placing a six-month interest-free moratorium on the repayment of Canada Student Loans for all student loan borrowers. No payment will be required and interest will not accrue during this time.
Students do not need to apply for the repayment pause.
Support to Business
Avoiding layoffs
Extending the Work-Sharing program
We are extending the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks. The Work-Sharing program is offered to workers who agree to reduce their normal working hours because of developments beyond the control of their employers.
Providing small business with wage subsidies
We are providing eligible small employers a temporary wage subsidy for a period of three months.
The subsidy will be equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.
Businesses will be able to benefit immediately from this support by reducing their remittances of income tax withheld on their employees’ remuneration.
Access to credit
Establishing a Business Credit Availability Program
We established a Business Credit Availability Program (BCAP) to provide more than $10 billion of additional support, largely targeted to small and medium-sized businesses, through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC and EDC are cooperating with private sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation and tourism.
As a first step, businesses in need of credit support should contact their financial institution.
Lowering the Domestic Stability Buffer
The Office of the Superintendent of Financial Institutions announced it is lowering the Domestic Stability Buffer by 1.25% of risk-weighted assets. This action will allow Canada’s large banks to inject $300 billion of additional lending in to the economy.
The Bank of Canada is acting in several ways to support the economy and financial system and stands ready to take any and all actions that it can to protect the well-being of Canadians during this difficult time. The Bank has responded by lowering interest rates, intervening to support key financial markets and providing liquidity support for financial institutions.
Support for farmers
Increasing credit available
We have increased credit available to farmers and the agri-food sector through Farm Credit Canada.
Supporting financial stability
Launching an Insured Mortgage Purchase Program
We launched an Insured Mortgage Purchase Program, in which we will purchase up to $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation.
This action will provide long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers and businesses, and add liquidity to Canada’s mortgage market.
More flexibility
We are allowing all businesses to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 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.