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Federal and Provincial governments announced new and updated programs to support businesses during Omicron variant

Federal and Provincial governments announced new and updated programs to support businesses during Omicron variant

Since last week’s announcement that the Ontario provincial government were joining other provinces across Canada in reintroducing some capacity limits and restrictions on operations, TIAO has joined partner organizations in asking all levels of government to reintroduce economic support packages. After 21 months of this pandemic, the perfect storm of falling revenues, increased costs and volatile consumer sentiment, we know that the new Omicron variant and the restrictions and uncertainty that come with it couldn’t have come at a worse time.  

This afternoon, both the Federal and Provincial governments announced new and updated programs to support businesses during this period.  

Federal Announcements 

In a televised address to the nation, Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland announced that using regulatory authority provided in Bill C-2, the government intends to introduce new regulations that would: 

Expand the Local Lockdown Program to include employers subject to capacity-limiting restrictions of 50 percent or more; and reduce the current-month revenue decline threshold requirement to 25 per cent. Eligible employers will receive wage and rent subsidies from 25 percent up to a maximum of 75 percent, depending on their degree of revenue loss. The 12-month revenue decline test continues to not be required in order to access this support. 

Expand the Canada Worker Lockdown Benefit to include workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50 percent or more. As announced previously, this benefit will provide $300 a week in income support to eligible workers who are directly affected by a COVID-19-related public health lockdown, and who have lost 50 percent or more of their income as a result. 

These measures will be in effect from December 19, 2021 to February 12, 2022 as provincial governments take measures to halt the spread of the Omicron variant.  

You can read more about these programs and others available here  

Provincial Announcements 

The Ontario provincial government have announced two new programs to aid businesses affected by new restrictions put in place due to the Omicron. These supports include a new Ontario Business Costs Rebate Program and a six-month interest- and penalty-free period to make payments for most provincially administered taxes. 

The Ontario Business Costs Rebate Program 

Eligible businesses will receive rebate payments equivalent to 50 percent of the property tax and energy costs they incur while subject to the current capacity limits. This will provide support to businesses that are expected to be most impacted financially by the requirement to reduce capacity to 50 percent. Examples of businesses that will be eligible for the Ontario Business Costs Rebate Program include restaurants, smaller retail stores and gyms. A full list of eligible business types will be made available through a program guide in mid-January 2022. 

Online applications for this program will open in mid-January 2022, with payments to eligible businesses provided retroactive to December 19, 2021. Businesses will be required to submit property tax and energy bills as part of the application process 

Six-month interest- and penalty-free period 

The province is also providing additional support to help improve cash flows for Ontario businesses by providing a six-month interest- and penalty-free period to make payments for most provincially administered taxes, supporting businesses in the immediate term while capacity restrictions are in place while providing the flexibility Ontario businesses will need for long-term planning. The six-month period will begin January 1, 2022 and end July 1, 2022. 

This measure will provide up to $7.5 billion in relief to help approximately 80,000 Ontario businesses. With this help, approximately 80,000 businesses will have the option to delay their payments for the following provincially administered taxes: 

Employer Health Tax 

Beer, Wine & Spirits Taxes 

Tobacco Tax 

Insurance Premium Tax 

Fuel Tax 

International Fuel Tax Agreement 

Gas Tax 

Retail Sales Tax on Insurance Contracts & Benefit Plans 

Mining Tax 

Race Tracks Tax 

TIAO wants your feedback 

What is clear from the past two weeks and the emergence of the Omicron variant, is that our exit point from this pandemic remains unclear. That is why TIAO continues to push for economic support packages that reflect the reality on the frontline and ensure no business is left behind. As ever, we want your feedback on these programs so that we can feed into government. Simply email info@tiaontario.ca with your thoughts. 

 


 December 22, 2021