Federal Finance Minister Bill Morneau today unveiled the “first phase” of Canada’s “Economic Response Plan” – which includes $27B in direct support and aid to Canadians and $55B in tax deferrals.
The federal package includes a number of desired-actions Chamber members in BC flagged in the BC Chamber network-wide
COVID-19 Business Impact Survey,
the results of which were shared with both the federal and provincial government, including:
- A payroll subsidy equal to 10% of remuneration paid during a 3 month period for companies with payrolls under $1 million
- Liquidity measures for business that will be available through banks, other financial institutions as well as BDC and EDC
- An emergency support benefit for those who lose their jobs and don't qualify for EI (this includes self-employed workers who have to close up shop)
- Extending the tax filing deadline to June 1
- Allowing taxpayers to defer tax payments until after August 31 (for amounts that are due after today and before September)
- Temporarily boosting of the Canada Child Benefit payments, delivering about $2 billion in extra support.
Of note in today’s federal announcement is the new “Emergency Care Benefit” which offers up to $900 biweekly (for up to 15 weeks) to provide income support to workers who have to stay home and don't have access to paid sick leave. The measure could disburse up to $10 billion. Also of note is a six-month, interest-free reprieve on student loan payments.