Canada Education Savings Grant

Disclaimer: RESP promoters

The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

Official title: Revised Income Brackets for Additional CESG

Information Bulletin

Number:
CESP/PCEE-2007-001
Date:
February 26, 2007
Subject
Notice #235 - Revised Income Brackets for Additional CESG

Previous Bulletin

This Information Bulletin updates the Information Bulletin CESP 2006-009 dated February 28, 2006.

Purpose

The purpose of this Information Bulletin is to inform promoters and trustees that income brackets used to determine the rate of payment for Additional Canada Education Savings Grant (A-CESG) have been indexed for 2007.

Background

Section 5(8) of the Canada Education Savings Act requires that the income brackets established for A-CESG purposes be indexed yearly based on inflation.

The Department of Finance Canada has recently released 2007 indexation rates. As a result income brackets for A-CESG have now been established for 2007.

Income Brackets to Determine A-CESG

The following table indicates income brackets used to determine the rate of the A-CESG on the first $500 or less of registered education savings plan (RESP) contributions per beneficiary per year.

Income Brackets to Determine A-CESG
In the

year...
The A-CESG rate is 20% when net family income is... The A-CESG rate is 10% when net family income is more than...
2007 $37,178 or less $37,178 but not more than $74,357
2006 $36,378 or less $36,378 but not more than $72,756

No Change to Basic CESG

Calculations for Basic CESG remain unchanged at 20% of RESP contributions per beneficiary per year.

Contact

Questions on this Information Bulletin should be directed to the CESG Program by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca, or by calling 1-888-276-3624.

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