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Minister Hutchings Highlights Federal Government’s Plan to Eliminate Interest on Student and Apprentice Loans and Enhance the Canada Workers Benefit

MIRAMICHI, NB, November 10, 2022 /CNW/ – In the recent Fall Economic Statement 2022, the government of Canada outlined its plan to continue its sound stewardship of the economy and be there for Canadians. To help families cope with rising costs, such as rising prices at the register, the Government is providing targeted support to Canadians who need it most, including doubling the Goods Tax Credit and services (GST) for 11 million eligible Canadians, improving the Canada Workers Benefit (CWB) to help 4.2 million Canadians, and making federal student and apprentice loans interest-free permanently for graduates of today and tomorrow.

Today, the Honorable Gudie Hutchings, Minister of Rural Economic Development, participated in an event at New Brunswick Community College highlight the government from Canada plan to make the federal portion of all Canada Student Loans and Canada Apprentice Loans, including those currently repaid, permanently interest-free.

The government of Canada also offers CWB Advance Payments to put more money, sooner, in the pockets of our lowest-paid, and often most essential workers. The ACT is a refundable tax credit intended to help individuals and families who work and earn low incomes. This measure would provide a total of up to $714 for single workers and $1,231 for a family to meet the rising cost of living. The amount will be divided between three advance payments.

The Canadian economy faces global headwinds from a position of fundamental strength: an unemployment rate near a record low – more than 500,000 more Canadians are working today than before the pandemic – growth strongest economy in the G7 this year, a triple-A credit rating, and the lowest net debt and deficit-to-GDP ratios in the G7. Canadians must be confident that we will overcome all obstacles and prosper in the days ahead.

Quotation

“The Fall Economic Statement is a fiscally responsible plan to make life more affordable and grow the economy. Our government is proposing permanent new measures to reduce the burden of student and apprentice loans for young Canadians by permanently eliminating interest on federal student and apprentice loans. This will make it easier for them to invest in building their future. We are also enhancing the quarterly Canada Workers Benefit and offering automatic advance payments to put more money in the pockets of our lowest-paid, and often most essential, workers.

– The Honorable Gudie Hutchings, Minister of Rural Economic Development

Fast facts

  • The federal government’s fiscal anchor—reducing COVID-19-related deficits and reducing the federal debt-to-GDP ratio over the medium term—remains unchanged. The federal debt-to-GDP ratio is expected to decline continuously and follow a steeper downward path than projected in Budget 2022.

  • New measures proposed in the Fall Economic Statement 2022 to understand:

1. Make life more affordable:

  • Permanent elimination of interest on federal student and apprentice loans

  • Create a new quarterly Canada Workers Benefit with automatic advance payments to put more money back in the pockets of our lowest-paid workers, sooner

  • Deliver on key pillars of the government’s plan to make housing more affordable, including creating a new tax-free home ownership savings account, doubling the first-time home buyers’ tax credit and ensuring property buyers pay their fair share

  • Reduce credit card transaction fees for small businesses

2. Invest in jobs, growth and an economy that works for everyone:

  • Launch of the new Canada Growth Fund, which will help Canada the billions of dollars in new private investment needed to reduce our emissions, grow our economy and create good jobs

  • Introducing significant investment tax credits for clean technology and clean hydrogen that will help create good jobs and Canada a leader in the transition to net zero and incentivizing higher wages for workers by increasing the level of credit when certain labor protections are met

  • Introduction of a new tax on share buybacks by public companies Canada

  • Create the Sustainable Jobs Training Center and invest in a new stream of sustainable jobs from the Union’s Training and Innovation Program to equip workers with the skills needed for the good jobs of today and tomorrow .

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SOURCE Innovation, Science and Economic Development Canada

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