What government assistance is available for seniors’ residences?
Government assistance for seniors’ residences: what is available at federal and provincial levels?
When the loss of autonomy is not too great, some seniors express the wish to remain at home, for example in a retirement home. This often involves special arrangements and the need for certain day-to-day services, which may or may not be included in the rent. In Quebec, government assistance for seniors’ residences is provided by way of a tax credit.
We’ll take a look at the way it’s constructed, and at the nuances that exist in terms of eligible services, in order to fully understand what can and can’t be included in the calculation.
We’ll also look at government assistance for seniors at the federal level.
Government assistance for private residences in Quebec – Provincial Assistance
Some eligible home-maintenance services are not included in the rent, but are nonetheless eligible for the tax credit. These services can be provided directly by the private residence, or by external suppliers. To be eligible, they must not be rendered by a spouse or dependant, but by a company able to issue an invoice. It’s important to understand that while the service rendered is eligible for the tax credit, the supplies involved are not.
For example, cleaning products and food are not eligible. On the other hand, this will be the case for nursing services and those related to daily activities. These include, for example, dressing and hygiene assistance. Services related to meals and clothing care can also be taken into account.
The calculation used to determine the amount of the tax credit takes two main elements into account. You must first consider the 65% of the value of eligible services included in the rent (75% for people who are not independent or over 70 years of age). To this must be added the amount for eligible occasional services that are not included in the rent. The tax credit corresponds to 35% of this amount. However, in the case of a shared apartment, the total monthly rent must be divided by the number of occupants.
See : Provincial tax credits for private seniors’ residences
Government assistance for private residences in Canada – Federal Assistance
Most Canadians aged 65 and over are eligible to receive a monthly Old Age Security pension. It will be complete for seniors who have lived in Canada for at least 40 years after the age of 18. It will be partial for those who have lived there between 10 and 40 years, always after the age of 18. Lastly, it may be higher than planned if the person chooses to defer it over time. To better understand how it works, please refer to the table below.
A guaranteed income supplement is available for Canadians with low incomes. This is the case for around one in three people. The amount received annually is between $600 and $840, depending on whether the person is a single person or a couple.
The purpose of the Pension Plan is to replace part of the income of all those who have decided to retire. The amount received depends directly on the contributions paid when the person in question was active. Since 2012, Canadians have had the option of gradually retiring from the workforce while continuing to work in a meaningful way.
A private seniors’ residence such as Manoir Gouin assists its residents to ensure that they are aware of available government residential assistance.