Prime minister Justin Trudeau announced $82bn in aid for Canadians and their businesses at his press conference this morning (March 18).
He also said Canada and the U.S. are halting non-essential travel across the border.
These measures, delivered as part of the Government of Canada鈥檚 COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and businesses, plus $55 billion to meet liquidity needs of Canadian businesses and households through tax deferrals to help stabilize the economy.聽
鈥淣o Canadian should have to worry about paying their rent or buying groceries during this difficult time," said Trudeau.
"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.鈥�
Support for workers
To support workers and their families, the Government of Canada is temporarily boosting Canada Child Benefit payments and introducing an Emergency Care Benefit of up to $900 bi-weekly for up to 15 weeks to provide income support to workers who must stay home and do not have access to paid sick leave.
This includes workers, including the self-employed, who are sick, quarantined or taking care of a family member who are sick with COVID-19 but do not qualify for EI sickness benefits.
It also includes EI-eligible and non EI-eligible working parents who must stay home without pay because of children who are sick or who need additional care because of school closures.
An Emergency Support Benefit is also going to be introduced to provide up to $5 billion in support to workers who are not eligible for EI and who are facing unemployment.
The mandatory one-week waiting period for sickness EI is waived for at least six months, as well as the requirement for a medical certificate.
The tax filing deadline for individuals has been extended to June 1, and all taxpayers can defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after today and before September 2020.
Eligible small businesses can apply for a 10 per cent wage subsidy for the next 90 days, up to a maximum of $1,375 per employee and $25,000 per employer. Employers benefiting from this measure would include corporations eligible for the small business deduction, as well as not-for-profit organisations and charities.
Support for businesses
The Government is announcing measures to allow business to defer, until after August 31, 2020, the payment of any income tax amounts. No interest or penalties will accumulate on these amounts during this period.
Increased credit is available to small, medium and large Canadian businesses and a new Business Credit Availability Program will provide more than $10 billion of additional support to businesses experiencing cash flow challenges.
"These are extraordinary times and we must take extraordinary measures," said Bill Morneau, Minister of Finance.
"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."
To implement these new measures the Government intends to introduce special legislation and seek the approval of Parliament.
