2022 ONTARIO ECONOMIC STATEMENT UPDATE
On November 14, 2022, Ontario’s Finance Minister, Peter Bethlenfalvy, provided the 2022 Federal Fall Economic Statement. The Economic Statement projects an improvement in the current deficit over the next three years.
Although there are no significant changes to the corporate or personal tax rates, this economic update has introduced measures to help with rising inflation and rebuilding the economy. Some of these measures include the following:
Extension of the temporary gas and fuel tax cuts
The government had previously cut the gas and fuel tax rates on July 1, 2022, by 5.3 cents per liter which were set to expire on December 31, 2022. This new measure proposes to extend the temporary cuts for an additional twelve months until December 31, 2023, saving Ontario households $195 on average.
Non-Resident Speculation Tax
The non-resident speculation tax (NRST) has increased from 20% to 25%, which applies to the purchase of residential property in Ontario by foreign nationals. This increase is effective October 25, 2022, and is in addition to any applicable land transfer tax.
Immediate Expensing on Capital Investments
In order to align with the federal government, the Ontario government is temporarily allowing eligible businesses to immediately expense up to $1.5 million per year on the acquisition of eligible capital assets.
Ontario Disability Support Program (ODSP)
The Ontario government is making changes to the ODSP program to increase the amount an individual on ODSP can earn before their monthly earnings from the program are reduced. The current monthly earnings exemption of $200 will be increased to $1,000 per month before their income benefits are reduced to 25 cents of support per dollar earned.
Increasing Financial Support for Seniors
To help seniors with rising inflation costs, the government proposes to double the Guaranteed Annual Income System (GAINS) for the twelve months, beginning January 2023. This will increase the maximum payment to $166 per month for single individuals and $332 for senior couples.
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