Justin Trudeau and Bill Morneau addressed the country separately on Wednesday morning to provide details of an $82B aid package to Canadians.
The $82B is broken down as $27B in direct support (1% of GDP) and $55B through tax deferrals (3% of GDP).
The package is positioned as a Phase 1 announcement, with promises of further aid to follow later.
Below is a list of measures announced:
Tax Returns: Extension of filing deadline for individuals to June 1 and a payment deadline of August 31. The payment deadline is one month longer than previously reported.
The self-employment filing deadline of June 15 does not appear to be impacted. Self-employed individuals will have to file by June 15, but will now have until August 31 to make their payment without incurring any interest.
Emergency Care Benefit: Income security of $450 a week for those employees or self-employed workers under quarantine, self-isolation or taking care of family members sick with COVID-19.
The program will require a simple attestation, no lengthy application. The benefit will be available in early April and paid via direct deposit.
Emergency Support Benefit ($5B): Workers who lose their job due to COVID-19 and that would not have been eligible for EI will receive a comparable benefit of up to 14 weeks.
GST Payments. For the next GST payment in May, government will provide a GST credit averaging $400 for single adults, and $600 couples. There are 12 million Canadians who receive the GST credit.
Canada Child Benefit (CCB): $300 top-up to the CCB to assist parents.
Mortgage Deferral: The Canada Mortgage and Housing Corporation (CMHC) will reintroduce the insured mortgage protection program, so that banks and lenders can offer mortgage and loan deferral to those impacted by COVID-19.
Banks will work with individuals and businesses on a case-by-case basis to provide a 6-month deferral on mortgage and other loan products.
Retirement Benefit: Temporarily lowering the RRIF minimum payment by 25%, which results in less taxable money coming out of RRIF accounts, and more money remaining invested to recover from the market decline.
Business Credit Availability Program: The Business Development Bank of Canada (BDC) will provide additional financing to help provide credit to businesses.
Bank of Canada: Rate cut of 0.50% (already announced).
Wage Subsidy for Small Businesses: 10% wage subsidy for the next 3 months, up to $25,000 per employer, effective immediately.
To support businesses that are facing revenue losses and to help prevent lay-offs, the government is proposing to provide 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. Employers benefiting from this measure will include corporations eligible for the small business deduction, as well as non-profit organizations and charities.
Air Transportation and Oil / Gas Sectors: Additional support for these industries.
Student Loans: Six-month moratorium on student loan payments.
Indigenous Communities: Distinctions based, indigenous community support fund.
Shelters: Additional funding of $200M to support homeless, domestic assault shelters, half-way homes, and transition homes.
We’ll send out additional briefs as more information becomes available on the mechanics of these programs.