OAS July update payment rates for third quarter of 2019
The federal government has announced the Old Age Security (OAS) and related amounts which will be paid during the third quarter (July 1 to September 30) of 2019. OAS payments are indexed quarterly to changes in the Consumer Price Index.
During the third quarter, the maximum OAS payable will be $607.46 per month. More information on OAS rates, as well as amounts payable during the quarter with respect to the Guaranteed Income Supplement (GIS) and the Allowance for the Survivor can be found on the federal government website at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html.
Prescribed interest rate for leasing for July
The Canada Revenue Agency (CRA) has announced the prescribed interest rate for leasing rules which will be in effect during the month of July 2019.
The prescribed rate for July is 2.75%.
A chart showing all prescribed interest rates for leasing since 2010 can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/prescribed-interest-rates-leasing-rules.html.
Inflation rate for May at 2.4%
The most recent release of Statistics Canada’s Consumer Price Index shows that the rate of inflation for the month of May 2019, as measured on a year-over-year basis, stood at 2.4%.
Inflation during May was broad-based, with prices rising in all eight of the major index components. The greatest increases were seen in the cost of food and transportation, which rose by 3.5% and 3.1%, respectively.
Details of the inflation picture for the month, by index component and province, are outlined in the June release of the Consumer Price Index, available on the StatsCan website at https://www150.statcan.gc.ca/n1/daily-quotidien/190619/dq190619a-eng.htm?HPA=1&indid=3665-1&indgeo=0.
Increases to GST/HST credit and Canada Child Benefit payment rates
July 1, 2019 is the start of the 2019-20 benefit year for many provincial and federal child and tax benefits, including the federal GST/HST credit and the Canada Child Benefit.
As of that date, the payment rates for each of those benefits, along with the threshold income levels for benefit eligibility, is increased.
Information guides which were recently issued by the Canada Revenue Agency on the Canada Child Benefit and the GST/HST credit for the upcoming benefit year can be found at https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4210/rc4210-19e.pdf and https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t4114/t4114-19e.pdf.
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