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 Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB)

Information Bulletin

Number:
CESP/PCEE-2009/10-001-358
Date:
August 18, 2009
Subject:
Notice #358 - Revised Income Brackets for additional Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).

Previous Bulletin

This Information Bulletin updates the Information Bulletin CESP-2008-003 dated April 18, 2008.

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 CESG have been indexed for 2009;
  • Budget 2009 changes did impact the National Child Benefit Supplement (NCBS) eligibility brackets which are used to determine the eligibility for the CLB.

Income Brackets to Determine Additional CESG

The additional CESG is subject to subsection 5(8) of the Canada Education Savings Act which requires the income brackets (i.e. $35,000 and $70,000) established for additional CESG eligibility purposes be indexed yearly based on inflation.

The Canada Revenue Agency has released the 2009 Indexation Adjustment for Personal Income Taxes which reflects an indexation increase of 2.5% for 2009. Due to this indexation adjustment, income brackets for additional CESG eligibility have been established for 2009.

The following table indicates income brackets used to determine the rate of the additional CESG on the first $500 or less of Registered Education Savings Plan (RESP) contributions per beneficiary per year.

Income Brackets to Determine Additional CESG
In the year... The additional CESG rate is 20% when net family income is… The additional CESG rate is 10% when net family income is more than…
2009 $38,832 or less $38,832 but not more than $77,664
2008 $37,885 or less $37,885 but not more than $75,769
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

Income Brackets to Determine NCBS / CLB

As a result of Budget 2009, there were changes to the NCBS eligibility income brackets that took effect on July 1, 2009. For further information on NCBS eligibility visit:

CCTB: calculation and payment information

Due to the above changes, the RESP Provider User Guide, the InfoCapsules and the CESG-CLB Quick Facts have been updated and are available for download on the Promoter Tools page.

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 Canada Education Savings Program by E-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or by calling 1-888-276-3624.

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