Notice #1005 - Budget 2023 changes affecting Registered Education Savings Plans approved in Budget Implementation Act, 2023 No. 1
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Information bulletin
Number: CESP/PCEE‑2023/24‑004-1005
Date: August 3, 2023
Subject: Budget 2023 changes affecting Registered Education Savings Plans (RESP) approved in Budget Implementation Act, 2023 No. 1
Purpose
The purpose of this information bulletin is to inform RESP promoters of approved changes in Budget Implementation Act, 2023, No. 1. The changes affect educational assistance payments (EAP) limits and who can be an RESP subscriber.
Changes to EAP limits in Budget 2023
On March 28, 2023, Budget 2023 announced the government’s intention to change EAP limits in the Income Tax Act. The changes are:
- an increase from $5,000 to $8,000 on the limit of an EAP during the first 13 weeks of study for full‑time studies (qualifying educational program), and
- an increase from $2,500 to $4,000 on the limit of an EAP for every 13‑week period of study for part‑time studies (specified educational program)
Employment and Social Development’s (ESDC) “Request for an educational assistance payment over $5,000 for full-time studies or over $2,500 for part-time studies from a Registered Education Savings Plan (RESP)” form has been updated to reflect the new limits. Promoters can request the updated form and begin using it immediately.
ESDC continues to explore ways to modernize the request form.
Changes to who can be a subscriber in Budget 2023
On March 28, 2023, Budget 2023 also announced the government’s intention to change who can be a subscriber in an RESP. Former spouses and common-law partners who are still the legal parents of a child may now open or transfer a joint RESP.
Coming into force
The Budget Implementation Act, 2023, No. 1 received Royal Assent on June 22, 2023. Both changes are deemed to have come into force on March 28, 2023.
RESP promoters may need to amend the terms of existing plans to apply the new EAP withdrawal limits.
Students who have withdrawn EAPs since March 28, 2023, may be able to withdraw an additional EAP amount, subject to the new limits and the terms of the plan. The Income Tax Act allows for EAPs to be withdrawn up to 6 months after a student is no longer enrolled in an eligible program.
Contact us
If you have any questions about this notice, please contact us:
- by using our online contact page
- by phone at 1‑888‑276‑3624
- by e‑mail at cesp‑pcee@hrsdc‑rhdcc.gc.ca
Our business hours are from 8 am to 5 pm, Eastern Time.
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