Notice #747 – Revised income brackets for the Additional amount of Canada Education Savings Grant (Additional CESG) for 2018

Information bulletin

Number: CESP/PCEE-2017/18-008-747

Date: December 14, 2017

Subject: Revised income brackets for the Additional amount of Canada Education Savings Grant (Additional CESG) for 2018

Previous bulletin

This information bulletin updates the information bulletin CESP/PCEE-2016/17-006-700 dated December 16, 2016.

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 2018.

Background

The Additional CESG is subject to subsection 5(4) (a) of the Canada Education Savings Act which uses the adjusted 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 2018 Indexation adjustment for personal income tax and benefit amounts. Due to this indexation adjustment, income brackets for the Additional CESG eligibility have been established for 2018.

Income brackets to determine the 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 the Registered Education Savings Plan (RESP) contributions per beneficiary, per year.

Year First threshold (adjusted income bracket) Rate of payment = 20% Additional CESG Second threshold (adjusted income bracket) Rate of payment = 10% Additional CESG
2018 $0 - $46,605 $46,605 but not more than $93,208
2017 $0 - $45,916 $45,916 but not more than $91,831
2016 $0 - $45,282 $45,282 but not more than $90,563

No change to the Basic CESG

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

Updates to the RESP promoter resources

Due to the above changes, the 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 at 1-888-276-3624. Our hours of operation are from 8:00 to 17:00 Eastern Time.

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