COVID-19 – Canadian Tax and Business News, release #12
Our COVID-19 Canadian Tax and Business News updates are our way of informing our clients, friends and business associates with recent information that may help businesses and individuals while coping with the outcomes from the COVID-19 pandemic.
Our goal is to monitor the news and release relevant information as it becomes available.
“An investment in knowledge always pays the best interest.”
– Benjamin Franklin
The summary below is based on our understanding and interpretation of the announcements made by the government. The information below is in summary form and subject to change until the proposals are passed as legislation. Contact one of our professionals to discuss these matters in the context of your situation before acting upon such information.
Canada Emergency Student Benefit (CESB)
On April 22, 2020, Prime Minister Trudeau announced $9 billion of financial support for post-secondary students and recent graduates. The proposed CESB will provide support to eligible students who are not eligible for the Canada Emergency Response Benefit (CERB). Draft legislation, Bill C-15 An Act respecting Canada emergency student benefits (coronavirus disease 2019), was tabled in parliament and is still awaiting Royal Assent.
Which Students Are Eligible?
Eligible students must be Canadian citizens, permanent residents or registered as Indian under the Indian Act. Furthermore, eligible students include:
- Students who were enrolled in a post-secondary education program that leads to a degree, diploma or certificate at any time between December 1, 2019 and August 31, 2020
- Students who graduated from secondary school in 2020, have applied for enrolment in a post-secondary education program scheduled to begin before February 1, 2021 and plan to enrol in the program if accepted
Students must also attest that they are seeking work but for reasons related to COVID-19, they are unable to find it (work includes employment or self-employment) or they are working but are earning less than allowable amount. The allowable amount is expected to be $1,000 per month but was not noted in the draft legislation.
How Much Can Students Get?
The CESB is expected to provide $1,250 per month to eligible students and $1,750 per month for eligible students with a disability or adult students with a child with a disability. The Canada Revenue Agency will administer this program. The program will provide support from May to August 2020. No details have been provided as to when the CRA application portal will be made available however all applications must be filed by the end of September.
Other Support Programs
The government has also proposed the following programs:
- The new Canada Student Service Grant which will provide up to $5,000 to support student’s post-secondary education costs in the fall. More details on eligibility and funding are expected to be released in the coming weeks.
- The enhanced Canada Student Loan Program will allow more students to qualify for support and be eligible for greater amounts. Details will be announced at a later date.
As we all try to stay safe, we need to remind ourselves business will get back to normal but in the meantime lets all do our part to get to normal as soon as we can. If you have any questions or require further information, don’t hesitate to reach out to us.