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.
| 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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