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Each qualifying Registered Education Savings Plan (RESP) beneficiary may receive an Additional CESG for RESP contributions made on or after January 1, 2005, depending on the annual income of the beneficiary's family. For 2008, the additional CESG rates are as follows:
- 20% over and above the current 20% Basic CESG on the first $500 contributed to an RESP annually, if the beneficiary's family has qualifying net income for the year of less than $37,885.*
- 10% over and above the current 20% Basic CESG on the first $500 contributed to an RESP annually, if the beneficiary's family has qualifying net income for the year between $37,885 and $75,769.*
You may apply for the Additional CESG at your local Scotiabank branch. For each beneficiary that you set out as eligible on the application for the Additional CESG, we will apply to the CESG program on your behalf after each contribution made to your Scotia RESP for that beneficiary. Any additional CESG received by Scotiabank will be paid into your Scotia RESP and invested on a pro-rata basis according to your current asset mix.
What You Need
In order to be eligible to receive the Additional CESG, the beneficiary must meet the following conditions:
- Be a Canadian resident
- Have a valid Social Insurance Number (SIN)
To obtain a SIN, you may get an application from your local Scotiabank branch or Human Resources and Skills Development Canada office. You can also download the form in PDF format from the Human Resources and Skills Development Canada website.
Special Considerations
For an RESP to be eligible for Additional CESG payments, the plan must be:
- An Individual Plan; or
- A Family Plan in which all beneficiaries are siblings
Eligibility
An eligible beneficiary qualifies to receive Additional CESG up to December 31st of the year in which they turn 17 years of age. A 16 or 17 year old beneficiary qualifies for Additional CESG, if one of the following two conditions have been:
- A minimum of $2,000 of RESP contributions must have been made, and not withdrawn, before the end of the calendar year in which the beneficiary turned 15
OR
- A minimum of $100 in annual RESP contributions made and not withdrawn in any four years preceding the end of the calendar year in which the beneficiary turned 15
Transferring the Additional CESG
In addition to the Income Tax Act (ITA) requirements, CESG can only be included in a transfer providing:
- Receiving plan is an Individual Plan for the same beneficiary; or
- Receiving plan is a Family Plan and all the beneficiaries in the receiving plan are siblings; if the relationship criteria is not met, Basic CESG can still be transferred, providing no Additional CESG has been paid into the transferring RESP
Timelines to Apply for Additional CESG
Additional CESG may not be carried forward to future years.
RESP Maximum Contribution Amount
The maximum lifetime contribution allowed per beneficiary is $50,000. The Additional CESG is not included in calculating your lifetime contributions.
Maximum Additional CESG
Each beneficiary will be eligible to accumulate a maximum annual Additional CESG of $100 ($500 x 20%), to a maximum lifetime CESG (Basic and Additional) of $7,200.
Using the Additional CESG
The Additional CESG and any income that the grant generates will be paid out to the beneficiary while he or she is enrolled at an eligible post-secondary institution. You can obtain a published list of approved educational institutions and courses from your Provincial Ministry of Education or your local tax services office.
What if my child decides against post-secondary education?
Additional information about the Additional CESG is available on the Government of Canada website.
To find out more
* Eligibility is determined by CRA
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