On November 14, 2017, Charles Sousa, the Minister of Finance for Ontario, released the 2017 Fall Economic Outlook and Fiscal Review. The mid-year economic and fiscal outlook is intended to highlight past government initiatives and set out measures that will be introduced as part of Budget 2018.

The Ontario government has promised to balance the budget over the next three years and has stated that as a consequence, more funding will be available for small businesses, students, workers, and families and seniors. Some measures that are being introduced include initiatives in the following areas:

  • Health Care: Effective January 1, 2018, OHIP+ will provide free prescription medications to children and youth under the age of 25. In addition, $618 million has been earmarked for health infrastructure to expand services and improve patient care in hospitals
  • Senior Support: $155 million to be invested over 3 years to provide 5,000 new long-term care beds by 2022 and more than 30,000 beds over the next decade.
  • Revamped OSAP: Free tuition is currently provided for students who meet the required criteria. The Province is proposing to introduce a new tuition billing systems to factor in and apply the amount of OSAP received by the student to the tuition billing.
  • Reduction in Ontario Small Business Corporate Income Tax Rate: Effective January 1, 2018, the Province of Ontario is proposing to cut the tax rate on the first $500,000 of active business income to 3.5% down from its current rate of 4.5%
  • Incentives for Businesses: In 2018, small businesses with fewer than 100 employees will receive $1,000 for hiring workers aged 15 to 29, and another $1,000 for retaining them for six months
  • Increasing Access to Capital for Small Businesses: The Province proposes to invest $8 million in a pilot project to enhance access to capital for small businesses, particularly in partnership with financial services (FinTech) providers and institutional lenders.
  • Increase in Minimum Wage: The hourly minimum wage in Ontario will rise to $14 on January 1, 2018 and to $15 in 2019
  • Ontario's Fair Housing Plan: The Ontario government maintains that its actions have assisted in stabilizing the real estate market and making housing more affordable. the Province intends to proceed with an expansion of rent control measures to private units ensure no spikes in rent will occur.
  • Land Transfer Tax on Unregistered Dispositions: The Province proposes to amend the Land Transfer Tax Act to prescribe rules with respect to the reporting and payment of unregistered dispositions of a beneficial interest in land.
  • Pension reform: Ontario proposes a new framework for defined benefit pension plans that will include certain measures to help protect workers' retirement benefits

To review the entire 2017 Fall Statement please click on this link.

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