THUNDER BAY – The Canadian government plans to provide $82 billion in a coronavirus support package for those affected by the world-wide outbreak of COVID-19.
Finance Minister Bill Morneau and Prime Minister Justin Trudeau on Wednesday announced the measures, saying they will provide temporary income support, up to $900 biweekly for up to 15 weeks to workers, including the self-employed, who are quarantined or sick with coronavirus, but do not qualify for employment insurance benefits.
Also eligible are workers who are taking care of a family member sick with COVID-19, who don’t qualify for EI support, and parents who must stay home to take care of children because of school closures and are unable to earn income, irrespective of whether or not they qualify for EI benefits.
The government will also spend up to $5 billion to support workers not eligible for employment insurance who are facing unemployment due to shutdowns and layoffs.
Another $5.5 billion will be spent on a one-time special Goods and Services Tax credit that will provide $400 to single individuals and nearly $600 for couples, a move meant to support more than 12 million low- and modest-income families.
The feds also plan to increase the maximum Canada Child benefit amounts for 2019-20, by $300 per child, a $2-billion expense. An additional $305 million will be provided for an Indigenous Community Support Fund to address the immediate needs in First Nations, Inuit and Metis Nation communities.
Greater flexibility for taxpayers will also be provided, with the filing date deferred until June 1. However, the Canada Revenue Agency encourages those expecting to receive benefits, such as the GSTC or the Canada Child Benefit not to delay in order to receive payments on time.
Relief for tax payments will also be provided until after Aug. 31, with no interest or penalties until that time.
A six-month, interest-free moratorium will also be put in place, and support will be provided for vulnerable populations, such as victims of domestic violence, who cannot self-isolate at home.
“No Canadian should have to worry about paying their rent or buying groceries during this difficult time. That is why we are taking the strong action needed to stabilize our economy and help those impacted by the COVID-19 virus. Together, we will get through this difficult time,” Trudeau said.
Ottawa is also helping small businesses faced with revenue losses and layoffs with a three-month temporary wage subsidy of up to $1,375 per employee and $25,000 per business.
Businesses will also be allowed to reduce remittance of income tax withheld on employee remuneration and they can defer payment of any income tax amounts that become owing as of Wednesday through Aug. 31.
The Business Development Bank of Canada will also provide $10 billion in support, targeted at small- and medium-sized businesses.
Much of the plan does require the assent of Parliament and will be voted on next month.
“These are extraordinary times and we must take extraordinary measures. The government of Canada will do whatever it takes to ensure that the health of Canadians is protected, families and businesses are supported and our economy remains strong, even in the face of uncertainty,” Morneau said.
“I am working with the financial sector, the Bank of Canada, my provincial and territorial colleagues, and my counterparts from around the world to keep coordinating on significant actions to protect the Canadian and global economy. Canadians can rest assured that we are ready to take all necessary measures to meet the challenges ahead."