(Please note this post was updated on March 27 to reflect changes made to the federal government’s Economic Response Plan)
On March 18, the federal government announced measures aimed at stabilizing the economy during the COVID-19 epidemic. These measures include direct supports to Canadian workers and businesses. If you are a student about to finish the school year or about to graduate, here’s what you need to know.
The information in this post regarding Canada’s COVID-19 Economic Response Plan was gathered through the Government of Canada’s website.
- Payments on Canada Student Loans and Canada Apprentice Loans will be halted March 30 until September 30, 2020. Your loan will not accrue interest during that period.
- Note: So far, Alberta, British-Columbia, Ontario, Nova-Scotia, Prince-Edward Island, Quebec and Saskatchewan have announced a similar measure for the provincial portion of students loans. Stay tuned for updates.
Visit https://www.csnpe-nslsc.canada.ca/en/home to find out more.
The new Canada Emergency Response Benefit (CERB)
The government 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.
The Canada Emergency Response Benefit will be accessible through a secure web portal starting in early April. Applicants will also be able to apply via an automated telephone line or via a toll-free number.
The following measures will be implemented for parents:
- Doubling the Goods and Services Tax credit for low- or moderate-income households, which will be sent out in May 2020
- Boosting the Canada Child Benefit by $300 per child starting in May for the 2019-2020 benefit year.
- If you are eligible, these benefits will be received as part of your tax return for the 2019-2020 benefit year.
Filing Your Taxes
- For individuals, the return filing due date will be deferred until June 1, 2020.
- The Canada Revenue Agency will allow all taxpayers to defer payments until after August 31. No interest or penalties will accumulate on these amounts during this period.
- If you are expecting a return, we encourage you to file your taxes as early as possible. You can submit a return for free through the Federation’s free uFile service for students.
Is something missing? Let us know! Email us at email@example.com to share additional information or ask questions.