Summary of Major Measures - Economic Response Plan
The information below has been announced by the government over the past week, here is a summary of major measures being offered so far.
Temporary income support: The headline measure in the Emergency Care Benefit of up to $900 bi-weekly, for up to 15 weeks. This will cover workers quarantined with COVID-19 without EI benefits; those taking care of family with COVID-19; and parents without income in need of childcare.
Long-term income support: Benefit through the CRA to unemployed workers not eligible for EI.
GST credit: One-time special payment through the GST credit in May 2020, doubling the maximum amount for the 2019-20 benefit period. The average increase for those eligible is around $400 for an individual.
Canada Child Benefit: A temporary increase for the 2019-20 benefit period, by $300 per child (distributed in the May payment).
Student loan relief: Six-month interest free period for student loan repayments.
RRIF withdrawal rules: The minimum withdrawal amount will be reduced by 25% for 2020
Tax payment flexibility: Tax filing deadline for individuals extended to June 1, 2020; all taxpayers with balances owing can defer payment (on amounts owing beginning today) interest and penalty free until after August 31, 2020.
Business wage subsidy: Subsidy of 10% of payroll value for three months, up to a maximum of $1,375 per employee and $25,000 per employer. This will be administered through reduced payroll remittances.
Business Credit Availability Program and Domestic Stability Buffer: As announced, BDC and EDC will provide $10 billion of lending support to small and medium-sized businesses. OSFI’s 1.25% capital buffer reduction will free up $300 billion of lending capacity by Canadian banks.
Flexibility by financial institutions: Ottawa is recommending (and banks have confirmed) that lenders will be open to support including up to 6-month payment deferral for mortgages and relief on credit products. CMHC will allow lenders to allow payment deferral on insured mortgages, and other measures such as re-amortization are encouraged.