Today, the Government of Ontario released the 2022 Ontario Economic Outlook and Fiscal Review – Ontario’s Plan to Build: A Progress Update.
It included the government’s progress report on previous budgetary commitments, as well as new measures. These new measures include support for small businesses, training and workforce development investments, gas tax relief, and changes to the Ontario Disability Support Program.
KEY HIGHLIGHTS
Small Businesses
- Providing over $675M in Ontario income tax relief over 3 years by temporarily allowing eligible businesses to immediately expense up to $1.5M per year for certain capital investments
- Proposing to extend the phase-out range for the small business Corporate Income Tax rate to between $10M and $50M of taxable capital
- Proposing to expand eligible expenditures for the Ontario Productions Services Tax Credit to include location fees
- Establishing consultation groups to support refocused red tape reduction efforts, inviting representatives from key industries and areas of activity across the province
- Proposing legislation to launch a voluntary Clean Energy Credit registry
- Proposing amendments to the Securities Act to enable digital access to documents
Skills Development and Training
- Providing an additional $40M in 2022-23, including $30M in new funding for latest round of the Skills Development Fund to support priority infrastructure projects and youth employment training
- Providing an additional $4.8M over two years, beginning in 2023-24, for the Dual Credit program to enhance pathways for high school students into the skilled trades and early childhood education
- Launching a consultation this winter with stakeholders on proposed regulations necessary for implementing a permanent target benefit pension framework in Ontario
Immigration
- Calling on the federal government to significantly increase the number of skilled newcomers that come to Ontario to support economic growth and fill targeted labour market gaps across the province
Gas Tax
- Proposing to extend the cuts to the gas and fuel tax rates (9 cents per litre) until December 31, 2023 (set to expire at end of 2022)
- This measure will save households on average $390
Ontario Disability Support Program
- Making changes to increase the Ontario Disability Support Program (ODSP) monthly earnings exemption for a person with a disability from $200 to $1,000 per month
- Increasing ODSP core allowances and the maximum monthly amount for the Assistance for Children with Severe Disabilities by 5%
- Planning to improve the disability eligibility determination processes
Economic Outlook:
- Economic growth is expected to slow in 2023 and 2024
- Consumer price inflation is elevated across jurisdictions; inflation is expected to moderate but uncertainty persists
- Job increases are projected to slow after significant gains
Highlights from the Province’s Building Ontario Progress Report
Labour:
- Launching a Skilled Trades Strategy
- Raising the general minimum wage to $15.50 per hour as of October 1, 2022
Healthcare:
- Introducing a ‘Plan to Stay Open: Health System Stability and Recovery’ to add up to 6,000 more healthcare workers
- Providing more than $40B over next 10 years to improve and increase space in hospitals and build new health care facilities
Infrastructure:
- Investing $25.5B over next 10 years to support highway expansion and rehabilitation projects
- Investing nearly $4B to ensure every community across Ontario has high-speed internet by the end of 2025
- Advancing critical minerals opportunities in the Ring of Fire including committing almost $1B to support Ring of Fire critical legacy infrastructure
- Attracting $16B in investments by global automakers and suppliers of electric vehicle batteries and battery materials
- Attracting $2.5B in investments to produce clean steel
For more details, please see here.