Notice #700 – Revised income brackets for Additional Canada Education Savings Grant (Additional CESG) for 2017

Information bulletin

Number:
CESP/PCEE-2016/17-006-700
Date:
December 16, 2016
Subject:
Revised income brackets for Additional Canada Education Savings Grant (Additional CESG) for 2017

Previous bulletin

This information bulletin updates the Information Bulletin CESP/PCEE-2015/16-003-651 dated December 14, 2015.

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 2017.

Background

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 thresholds in order to calculate the Additional CESG. These amounts are indexed yearly based on inflation.

The Canada Revenue Agency has released the 2017 Indexation adjustment for personal income tax and benefit amounts. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2017.

Income brackets to determine Additional CESG

The following table identifies the 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
(adjusted family net income bracket)
Rate of payment = 20% Additional CESG
Second threshold
(adjusted family net income bracket)
Rate of payment = 10% Additional CESG
2017 $0 - $45,916 greater than $45,916 but not more than $91,831
2016 $0 - $45,282 greater than $45,282 but not more than $90,563
2015 $0 - $44,701 greater than $44,701 but not more than $89,401

No change to Basic CESG

Calculations for Basic CESG remain unchanged.

Updated RESP promoter resources

Due to the above changes, RESP promoter resources will be updated on Canada.ca/RESPresources to reflect these changes in the near future.

Contact us

If you have any questions regarding this information bulletin, please contact us by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or call

1-888-276-3624. Our hours of operation are from 8 am to 5 pm Eastern Time.

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