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.