Ontario has passed legislation to create a more competitive business environment and make life more affordable, according to a provincial government release.
The Plan to Build Ontario Together Act, 2019, passed earlier this month, contains several measures to create jobs and make life more affordable for Ontario families, the release said.
These include:
- Reducing the small business Corporate Income Tax rate to 3.2 per cent from 3.5 per cent. This measure will provide tax relief of up to $1,500 annually to over 275,000 businesses that benefit from the small business Corporate Income Tax rate — from family-owned shops to innovative start-ups. It fulfills the government’s promise to cut Ontario’s small business tax rate by 8.7 per cent.
- Cutting the aviation fuel tax rate in Northern Ontario to 2.7 cents per litre from 6.7 cents per litre to help reduce the cost of living and traveling in the region.
- Amending the Securities Act and Commodity Futures Act, two key pieces of capital markets legislation, to help reduce regulatory burden while ensuring high standards of business conduct and protecting consumers, investors and pension plan beneficiaries.
“Our government continues to implement our balanced and prudent plan to put more money back into people’s pockets, invest in vital public services and deliver on our plan to balance the budget by 2023,” said Rod Phillips, Minister of Finance.
As announced in the 2019 Ontario Economic Outlook and Fiscal Review: A Plan to Build Ontario Together, the government is projected to beat its deficit target for 2019-20 by $1.3 billion — reducing the projected deficit to $9 billion from the $10.3 billion outlook presented in the 2019 Budget, while also investing an additional $1.3 billion in critical services. This includes more funding for small- and medium-sized hospitals, public health units, child care and programs to help the province’s most vulnerable.
Quick Facts
- Overall, Ontario’s small businesses will save $2.3 billion in 2020 through actions the government is taking such as cancelling the cap-and-trade carbon tax, keeping the minimum wage at $14 per hour, supporting Workplace Safety & Insurance Board premium reductions and delivering Ontario Corporate Income Tax relief.
- Changes to the aviation fuel tax in the North could help to bring down the cost of groceries and other basic necessities for Northerners, which could save a family in the North about $230 a year. It could also help provide more affordable air travel for those visiting loved ones or pursuing new job opportunities, saving the frequent traveller $135 a year.
- 271,600 net new jobs have been created since June 2018 and the unemployment rate is 5.6%.