Revised Income Brackets for Additional CESG

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 (Additional CESG)

Information Bulletin

Number:
PCEE/CESP-2012/13-007-514
Date:
January 2, 2013
Subject:
Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG)

Previous Bulletin

This Information Bulletin updates the Information Bulletin PCEE/CESP-2011/12-006-466 dated December 23, 2011.

Purpose

The purpose of this Information Bulletin is to inform Promoters and Trustees that the income brackets used to determine the rate of payment for the Additional CESG have been indexed for 2013.

Income brackets to determine Additional CESG

The Additional CESG is subject to subsection 5(4)(a) of the Canada Education Savings Act which uses the adjusted family net income for an eligible individual to establish the first and second threshold in order to calculate the Additional CESG. These amounts are indexed yearly based on inflation.

The Canada Revenue Agency has released the Indexation Adjustment for Personal Income Taxes for 2013. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2013.

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.

Year

First threshold

Additional CESG rate is 20% when the adjusted family net income is…

Second Threshold

Additional CESG rate is 10% when the adjusted family net income is more than…

2013 $43,561 or less $43,561 but not more than $87,123
2012 $42,707 or less $42,707 but not more than $85,414

No change to Basic CESG

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

Updated promoter tools

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

Other changes to promoter tools

The following RESP Provider User Guide chapters have also been updated to incorporate additional changes identified below:

  • 2-1 The Basic CESG
    • 9.4: Clarify CESG repayment reasons
  • 2-2 The Basic and Additional CESG
    • 10.5: Clarify CESG repayment reasons
  • 2-3 The Canada Learning Bond (CLB)
    • 6.1: Clarify CLB repayment reasons
  • 3-1 RESP Transfers and the Education Savings Incentives:
    • 3.2.5: Clarify CESP transfer policies for Additional CESG

Contact Us

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

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