Prime Minister Justin Trudeau announced $82 billion in funding for Canadians March 18 to help fight the economic impacts of COVID-19.
The money will be split between tax breaks and expanded federal programs.
“We are focused on making sure that people who are not getting income or revenue because of this COVID-19 challenge, have the money to be able to pay for groceries, to pay their rent, to support their families through this difficult time,” Trudeau said.
The measures include waiving the one-week waiting period for Employment Insurance (EI) for those in quarantine. They are also expanding the EI program to people it does not currently cover. According to the federal government's website, the expansion will be available in April and administered through the Canada Revenue Agency (CRA), providing $900 every two weeks to those eligible.
Canada is also proposing a one-time Goods and Services Tax (GST) and Canada Child Benefit (CCB) rebate to be paid in May.
“Together, the proposed enhancements of the GST and CCB will give a single parent with two children and low to modest income nearly $1,500 in additional short-term support,” the response plan reads.
They’ll also be providing $305 million for a new Indigenous community support fund, a six-month moratorium on the repayment of student loans and reducing the minimum withdrawals from certain retirement plans.
“This will provide flexibility to seniors that are concerned that they may be required to liquidate their registered retirement income funds assets to meet minimum withdrawal requirements. Similar rules would apply to individuals receiving variable benefit payments under a defined contribution registered pension plan,” the plan reads.
The government is also adding $150 million to a fund to help people fighting homelessness and another $50 million to women and children fleeing violence.
The CRA is also pushing back the deadline for individuals to file their taxes to June 1. The plan also outlines what measures Canada’s banks are taking to help those who are struggling because of COVID-19 and its rippling effects.
“Canada’s large banks have confirmed that this support will include up to a six-month payment deferral for mortgages and the opportunity for relief on other credit products,” it reads.
“These targeted measures respond to immediate challenges being faced across the country and will help stabilize the Canadian economy.”
Trudeau said he is confident the Canadian economy can absorb a COVID-related hit.
“We also know that the fundamentals of the Canadian economy are strong,” he said. “Once we get rolling again, the capacity of the federal government to invest in the economy, to support businesses and individuals will ensure that we bounce back strongly. We have the fiscal room to do this because of prudent decision making over the past five years. We will be able to ensure that our economy gets back up to speed very quickly.”
Full details on the extra supports available can be found at www.canada.ca/en/department-finance/economic-response-plan.
