Treasury Secretary Chrystia Freeland’s plan to prop up Canada’s economy through the second wave of the novel coronavirus pandemic includes a temporary increase in the Canada Child Benefit (CCB), an increase in the wage subsidy and targeted aid for Industries particularly affected by the pandemic.
The Liberals’ financial update – the first spending roadmap presented by the government since the last federal budget in March 2019 – also reiterates that financial support for major airlines would come with refunds for canceled flights, a commitment made by Transport Ministers Marc Garneau was received earlier this month.
READ MORE: What the tax update says and what doesn’t about the introduction of the coronavirus vaccine.
Supporting the economy to a self-sustaining recovery requires more spending on aid to individuals and businesses, as well as targeted aid to industry and the region, the government said in its budget on Monday.
The main new aid the Liberals are proposing to individuals would be to families with young children.
The government raises $ 2. Increase of the CCB by 4 billion, which will give households up to 1. Would provide $ 200 per child under the age of six.
The additional support would come in the form of four tax-free payments of $ 300 for families with net income up to 120. $ 000, the government said. Those with incomes above that threshold would receive half or four payments of $ 150, which is an additional $ 600 grant.
The first installment would come « shortly after the Enabling Act is passed, » according to the documents, with subsequent payments in April, July and October 2021.
Currently households with children under the age of six can have up to 6. Get $ 765 per year – or $ 563. 75 per month – through the CCB. The additional payments of $ 300 for 2021 would represent an increase of nearly 20 percent over the maximum annual benefit.
Economic data suggests mothers of children under the age of six were disproportionately affected by the pandemic and had to cut their working hours or leave their jobs entirely due to childcare and school closings. For example, a recent RBC study found that between February and October, more than 20. 000 women have left the workforce, with mothers of young children accounting for two-thirds of this exodus.
According to an RBC study, mothers of children under 6 make up most of the workforce exodus amid the coronavirus
The government is also proposing temporary quarterly payments of $ 300 per child to federal, provincial, territorial and First Nation child protection agencies who care for vulnerable children.
Another initiative to increase support for individuals would be to have the government donate an additional 600 to the Veterans Emergency Fund. US $ 000 to aid veterans, their families, and survivors whose welfare is at risk due to an urgent and unexpected situation.
The Liberals also intend to increase the Canadian Emergency Wage Subsidy (CEWS) rate from the current 65 percent to 75 percent of employee wages for eligible companies.
The additional support is needed because of the « ferocity of the second wave and its expected economic impact, » argued the government in its budget update.
READ MORE: The coronavirus rental subsidy limits how much business chains can get. Is that unfair?
The proposed CEWS increase would be released on Dec.. begin. 20 and extend up to 13. March 2021.
But the government is holding back a similar increase on the federal corporate rent subsidy. The current prices for the Canada Emergency Rent Subsidy (CERS) are valid until April 13th. March, according to the documents.
READ MORE: Would you like to apply for the new coronavirus rental grant program? Here’s what you should know:
Ottawa’s revised version of the Commercial Rent Grant currently covers up to 90 percent of rental and eligible real estate costs for businesses that have seen significant revenue declines due to COVID-19.
In addition to providing large-scale injections of cash to businesses in trouble, the government stands ready to provide industry-specific assistance to sectors that have proven particularly vulnerable to the economic impact of the pandemic.
One idea is to create a new facility called HASCAP (Highly Affected Sectors Credit Availability Program) to provide cheap, government-sponsored funding to industries such as hospitality, arts and culture, and the aviation sector. The program would provide low interest loans of up to 1 million. USD over a term of up to 10 years.
There would also be hundreds of millions of dollars in direct and indirect support to tourism companies, local TV and radio stations, the arts, regional air transport, and airports.
Little mention was made of what the Liberals are doing to help major Canadian airlines, but the tax update said the government will « ensure » that Canadians are reimbursed for canceled flights when financial aid is channeled to the largest carriers.
Liberals are working on a long-awaited rescue package for the aviation industry that saw revenue fall due to travel restrictions and customer fears of contamination on airplanes.
Garneau said in early November that airlines would have to reimburse the cost of flights canceled due to COVID-19 in order to access the aid.
Child Allowance, Canada
EbeneMagazine – CA – A tax update would increase child allowance and wage subsidies, and ask for airline reimbursements
Related Title :
– Fiscal Update would increase child support and wage subsidy, airline reimbursement
– You can receive up to $ 1200 from the government in 2021 for every child you have under 6