CCA Brief: Government’s economic response plan to COVID-19

CCA Brief: Government’s economic response plan to COVID-19

Dear colleagues and members,

As part of our ongoing efforts to keep the industry informed, we have put together this briefing on the latest Government of Canada announcement.

CCA has also added a central information hub on our website with updates and resources regarding the COVID-19 outbreak for circulation and use amongst all members and companies. This hub can be found at cca-acc.com/covid-19-resources.

 

Government of Canada announces $82 billion relief and stimulus package amid COVID-19 outbreak

March 19, 2020 – Ottawa, ON – Yesterday in Ottawa, Prime Minister Justin Trudeau and Finance Minister Bill Morneau outlined in separate announcements the federal government’s financial package to assist businesses and individual Canadians throughout the ongoing uncertainty around the COVID-19 outbreak. The stimulus package includes $27 billion in direct support to Canadians as well as $55 billion in measures through tax deferrals totalling $82 billion dollars, the equivalent of 3 per cent of Canada’s total GDP.

These measures are a follow-up to the $1 billlion the federal government announced last week for its COVID-19 response fund that largely consisted of money for federal and provincial public health agencies to support research and equipment purchases as well as the $10 billion announced for small and medium enterprises (SMEs) through the Business Development Bank of Canada.

The measures in yesterday’s announcement were divided into two categories by the government and included:

Supports and measures specific for individuals

  • Provision of additional assistance to families with children by temporarily boosting Canada Child Benefit payments. This measure provides an extra $300 per child to deliver almost $2 billion total in extra support.
  • Introduction of an Emergency Care Benefit 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 measure could provide up to $10 billion to Canadians, and includes the following:
    • Workers, including the self-employed, who are sick, quarantined, or who have been directed to self-isolate but do not qualify for Employment Insurance (EI) sickness benefits.
    • Workers, including the self-employed, who are taking care of a family member who is sick with COVID-19, such as an elderly parent or other dependents who are sick, but do not qualify for EI sickness benefits.
    • 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.
    • Contractors are included if they cannot work due to being quarantined or for other reasons associated with COVID-19. It is possible to apply online, and receive payment via direct deposit. Simple attestation